More than sixty years after African nations won independence from colonial rulers, decolonization remains an unfinished project. And perhaps no issue embodies this better than currency. Africa’s continued use of the CFA franc, a relic of French colonialism, is contested even as Africans who use it are perfectly sovereign member-states. The legality of the currency is not at issue. However, many African critics of the CFA franc are quick to point out that it is a vestige of colonialism that unduly constrains monetary policy.
So why do independent African states still use France’s currency? Why has it been so hard to end it? History, geopolitics and post-colonial sovereignty all play a role. Introduction to Africa’s CFA Franc. The CFA franc was created in 1945 at the height of France’s colonial empire. France made the currency the required colonial currency for its African possessions. At the time, the acronym CFA stood for “Franc des Colonies Françaises d’Afrique,” or French Colonies of Africa franc.
CFA was designed to link African financial systems with France. African countries had to use the franc, which was tied to French currency. France benefited from fixed exchange rates for trade throughout its empire. After independence for African states during the 1950s and 1960s, the currency persisted. Today, fourteen African nations still use derivatives of the original currency, split into two distinct monetary unions: the West African Economic and Monetary Union and the West African Central African Economic and Monetary Community. African countries that use the currency today include Senegal, the Ivory Coast, Benin, Cameroon, Chad, Equatorial Guinea, Gabon, and several others.
The name was changed to “African Financial Community franc,” but the currency's history lives on in current debates over it. Here are a few ways the CFA franc reins in African monetary sovereignty in favor of France and Europe.
1. Fixed Exchange Rate France (and now Europe) requires that the currency have a fixed exchange rate with the French franc (now euro). Since 1999, that rate has been set at 1 € = 655.957 CFA francs. That means governments cannot devalue their currency to react to market pressures. 2. Requirement to Deposit Foreign Exchange: African governments were required to deposit half of their foreign exchange reserves with the French Treasury.
3. French Veto Power on Monetary Policy. France has a seat on the board of the central banks which govern CFA franc nations. Effectively, this gives France a say over African monetary policy. Proponents of the currency say these rules stabilize the currency and promote low inflation. Opponents say they tie African economies to Europe and limit sovereignty. For critics of the CFA, it is pure neocolonialism. Colonization may have ended, but control over African economies continues. Here are some reasons critics oppose the CFA franc.
Limits on Monetary Policy. Monetary sovereignty is the ability of a state to control its own currency and monetary policy. The CFA franc significantly limits that ability. Africans cannot change their exchange rates without European agreement. They cannot print more currency during an economic emergency. Many economists argue that this system is designed to send wealth from Africa to France. Fixed exchange rates and other factors can allow capital to flow out of Africa and be invested in Europe. Perhaps most importantly, African critics argue the system was never theirs to begin with. Created during colonization, it still favors the former colonial power. As one economic historian described it, for its opponents, the CFA represents “the continuation of empire by other means.” Not everyone has pushed to end the CFA. France has long defended the currency and its continued use by Africans.
However, there is plenty of criticism from within Africa too. Why Some Nations Defend the Use of the CFA Franc for Economic Stability: Because the CFA franc is tied to the euro, it has lower inflation and is less prone to financial crises. Economic leaders argue that this encourages international investment. Trade with Europe. African currencies that float independently against the euro tend to fluctuate. Many Africans argue that the stability of the CFA encourages trade with Europe. Financial Trust: Finally, some African countries with the CFA have had lower inflation rates than some neighbors. Leaders argue that moving to an independent currency would cause instability. Building Momentum to Abolish the CFA Franc. Recently, there have been increasing calls across Africa to abandon the CFA.
Activists, economists and politicians have taken up the cause to end Africa’s last currency with colonial ties. There have been protests in several African nations where people have demonstrated against the currency, chanting, “This is Africa’s last colonial currency.” The Economic Community of West African States (ECOWAS), a coalition of West African Nations, has plans to introduce a new currency to replace the CFA franc. The Eco, as it’s known, will serve as a currency fully controlled by African nations. The idea has been floated for years, but recent political will appears to have revitalized the plan. If launched, the Eco will not be the first attempt at an African Monetary union. Of course, abandoning the CFA franc won’t happen overnight. France considers the CFA relationship with African states a mutually beneficial partnership.
French officials argue that Africans are free to stop using the currency, but they choose not to.
The history of Franco-African relations, sometimes called Françafrique, complicates this picture.
Economics, trade agreements, and geopolitical interests muddy the water when it comes to “choice.” But the question remains: What does independence mean? Just because African nations gained political independence does not mean they control their own economic systems. As with the CFA, many economic systems in place today on the continent are holdovers from colonial times.
Independence, therefore, means something different to every person reading this article. To many in Africa, monetary sovereignty is the key to true independence. To others, globalization and financial integration make cooperation a necessity. What are your thoughts? Let us know in the comments.
References
Anadolu Agency. (2020). West African countries change currency, shed French ties. https://www.aa.com.tr/en/africa/west-african-countries-change-currency-shed-frenchties/1721787
BCEAO. (n.d.). History of the CFA franc. https://www.bceao.int/en/content/history-cfa-franc
Brookings Institution. (2019). How the France-backed African CFA franc works as an enabler and barrier to development. https://www.brookings.edu/articles/how-the-france-backed-africancfa-franc-works-as-an-enabler-and-barrier-to-development/
Borgen Project. (2022). A tumultuous turn for France–Africa relations. https://borgenproject.org/france-africa-relations/
Exploring Economics. (n.d.). Africa’s last colonial currency. https://www.exploringeconomics.org/fr/etude/livres/africas-last-colonial-currency/
Wikipedia contributors. (2025). CFA franc. https://en.wikipedia.org/wiki/CFA_franc
WITA. (2017). The CFA franc: French monetary imperialism in Africa. https://www.wita.org/atp-research/cfa-franc-french-monetary-imperialism/
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