As the global economy adjusts to the ongoing trade war between the United States and China, one continent has become increasingly central to future power dynamics: Africa.
Rich in natural resources,
demographic vitality, and economic potential, Africa stands poised to shape the
21st century. Yet much of the continent still grapples with the enduring
legacies of colonialism.
One of the most persistent
symbols of that legacy is the CFA franc a currency system created by France in
1945 and still used today by 14 African countries.
For France and other former
colonial powers, this is a defining moment.
Will they cling to outdated
systems of control masked as cooperation, or will they rise to meet the urgency
of the moment by supporting African nations on the path to full sovereignty,
economic independence, and regional leadership?
The CFA Franc: Stability or
Subjugation?
The CFA franc was originally
introduced to stabilize France’s colonial economies in West and Central Africa.
Today, it is still pegged to the euro and supported by French guarantees.
Supporters of the system argue it
brings fiscal discipline, low inflation, and reliable convertibility. On the
surface, these are valuable traits, especially in regions susceptible to
macroeconomic shocks.
But beneath this veneer of
stability lies a troubling reality. Until recent reforms in 2019, countries
using the CFA franc were required to deposit 50% of their foreign exchange
reserves into French Treasury accounts a policy that, though modified, was
widely seen as a form of economic dependency.
Decisions about monetary policy
were influenced or directly overseen by representatives from the French
government. Even now, critics argue that the structure prevents African nations
from tailoring fiscal responses to local crises, like pandemics, conflicts, or
commodity shocks.
While the West African Economic
and Monetary Union (WAEMU) has begun taking steps to reform the currency including
ending the mandatory deposit of reserves and planning a transition to the “Eco”
currency many see these as largely symbolic unless accompanied by deeper
political and economic changes.
A Turning Point in Global
Competition
The CFA franc debate is part of a
larger context. Africa is not merely a passive player in global affairs it is
increasingly being courted by global powers. China, through its Belt and Road
Initiative, has invested billions in African infrastructure, ports, and mining.
The United States, wary of
China's expanding influence, has been recalibrating its trade and development
policies toward the continent.
In this new reality, Europe and
particularly France risks being left behind. If former colonial powers continue
to interact with African nations through frameworks that reflect old
hierarchies and economic paternalism, they will not only lose political
goodwill but also strategic access to emerging markets, natural resources, and
diplomatic partnerships.
This is no longer just a
historical or ethical issue. It is a matter of geopolitical survival.
Moving From Exploitation to
Partnership
To remain relevant, Europe must
stop viewing Africa as a zone of influence and begin treating it as a partner.
This means several key shifts in
policy and attitude:
·
Systems like the CFA franc must evolve or be
replaced with mechanisms that truly reflect African agency and sovereignty.
Token reforms are insufficient. Monetary unions should be governed by Africans,
for Africans.
·
Instead of extractive relationships based on raw
material exports, Europe should prioritize investments in African
manufacturing, technology, and renewable energy. This supports sustainable
growth and creates jobs that reduce the push factors of migration.
·
Development assistance and trade agreements must
be built around respect, not conditions that echo colonial tutelage. The age of
dictating economic policy from Paris, London, or Brussels is over.
·
Europe can support Africa’s long-term growth
through meaningful partnerships in higher education, vocational training, and
digital literacy building the next generation of leaders, scientists, and
entrepreneurs.
Beyond the Past: A Shared
Future
Critics of these ideas often
argue that Africa is not ready to “go it alone,” or that the CFA franc’s
removal could destabilize already fragile economies.
But such arguments echo the very
logic used to justify colonial rule that Africans need external guardianship.
In reality, African nations are already asserting themselves through
initiatives like the African Continental Free Trade Area (AfCFTA), the African
Union’s Agenda 2063, and regional economic blocs.
Europe can either help accelerate
this movement or be sidelined by new players who offer fewer lectures and more
deals. The choice is clear.
As global supply chains shift,
and as the world reckons with climate change, demographic transformation, and
economic inequality, Africa’s role will only grow. Europe, with its historic
ties and shared cultures, is uniquely positioned to become Africa’s closest
ally if it chooses cooperation over control.
Conclusion
The CFA franc is more than just a
currency. It is a symbol of a relationship stuck in the past. If Europe wants
to play a meaningful role in Africa’s future, it must support policies that
advance true sovereignty, economic resilience, and regional leadership.
The world is watching. Africa is
rising. And it’s time for Europe to catch up not by dictating the terms, but by
listening, learning, and finally walking side by side.
Kuala Lumpur.
03.05.2025
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