By InnerKwest Intelligence Desk
A Currency Born in Colonization
The CFA franc, a vestige of French colonial rule, remains one of the most enduring—and contentious—symbols of European influence in Africa. Created in 1945 by France, the “Franc des Colonies Françaises d’Afrique” was designed to serve as a shared currency for French-ruled territories in West and Central Africa.
Today, more than 180 million people across 14 African countries still use the CFA franc. Despite decades of political independence, these nations remain financially tethered to a currency system governed—in part—by the French Treasury. And while the CFA franc has brought currency stability, its critics argue that it undermines sovereignty, limits economic autonomy, and perpetuates neo-colonial control in the 21st century.
A Tale of Two Francs
The CFA franc exists in two monetary zones, each with its own central bank:
- West African CFA franc (XOF) – used by countries such as Senegal, Ivory Coast, Mali, and Burkina Faso. It is governed by the Central Bank of West African States (BCEAO) in Dakar.
- Central African CFA franc (XAF) – used by countries like Cameroon, Gabon, and Chad. It is administered by the Bank of Central African States (BEAC) in Yaoundé.
Though identical in value and tied to the euro at a fixed exchange rate (1 euro = 655.957 CFA francs), these two currencies are not interchangeable between regions. France guarantees convertibility and holds part of the reserves of CFA countries in its central bank—granting it disproportionate influence over monetary policy in Africa.
The Promise and the Price
Proponents of the CFA franc argue that it ensures macro-economic stability, low inflation, and investor confidence. These are not minor achievements in a continent where currency volatility often undermines long-term development.
But stability comes at a price.
The peg to the euro limits a country’s ability to adjust interest rates, devalue the currency to boost exports, or print money in times of crisis. Worse, the system requires that 50% of CFA nations’ foreign exchange reserves be deposited in France—a clause many African economists view as deeply exploitative.
“Monetary sovereignty is the final frontier of African liberation,” says Dr. Ndiaye Sékou, a Senegalese economist. “We gained flags and anthems in the 1960s, but we never fully regained control of our economies.”
The Political Flashpoint
In recent years, anti-French sentiment has intensified in Francophone Africa. Leaders like Ibrahim Traoré of Burkina Faso, Assimi Goïta of Mali, and Faustin-Archange Touadéra of the Central African Republic have openly criticized the CFA franc and demanded its abolition. Demonstrations in cities like Bamako and Ouagadougou have featured burning French flags and protesters chanting “Down with the CFA!”
These tensions are not just ideological. They reflect a broader Pan-African awakening—a desire to break free from European economic structures that many believe are designed to keep Africa dependent.
Enter the ECO: A New Hope or More of the Same?
In December 2019, France and eight West African nations announced a plan to reform the CFA franc and transition to a new currency called the “ECO.”
The reform package promised to:
- End France’s role on the BCEAO board
- Remove the requirement for countries to deposit reserves in Paris
- Maintain the peg to the euro during a transition phase
But progress has stalled. The COVID-19 pandemic, internal disagreements among West African states, and the shifting geopolitics of 2023–2025 have delayed implementation. As of mid-2025, the ECO remains more theoretical than practical.
Some critics argue that unless the peg to the euro is broken, the ECO may become nothing more than a rebranded CFA franc with cosmetic changes.
Currency as a Tool of Identity and Liberation
In a continent racing toward digital innovation, blockchain adoption, and youth-led economies, the CFA franc is increasingly seen as a relic of the past. New movements like Afrocoin, Pan-African stablecoins, and decentralized financial systems (DeFi) are emerging as alternatives to French-backed monetary models.
African youth—more educated and connected than ever—are rethinking the structures that shape their financial futures. And for them, the CFA franc is more than a currency. It is a psychological barrier, a symbol of inherited dependence.
The Road Ahead: Reform or Rejection?
The question now is not whether the CFA franc should be reformed, but how fast and in whose interests. African governments are weighing the risks of monetary autonomy—higher inflation, investor skepticism—against the long-term need for sovereignty, self-determination, and regional integration.
As the global south reconfigures its alliances—with China, Russia, and BRICS rising—Africa’s monetary systems may be the next major battleground in the struggle for economic emancipation.
The CFA franc’s future is uncertain. But what is certain is that Africans are reclaiming the conversation.
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