The CFA franc: Enduring emblem of colonisation

(Zerbo)-- ‘Colonies Françaises d’Afrique’ or ‘Communauté Financière Africain’: same acronym, same reminder of the colonies we were, and of the neo-colonial system we are confined in. An acronym and system taped to our backs by decree, on Christmas Day, 1945.

About fifteen years later, another system was taped to our backs, or maybe our foreheads this time: independence. State sovereignty becomes a concept that puts one ill at ease when we consider the African countries of the Franc Zone. The strings-attached independence we acquired in the 1960s obviously did not grant us monetary and financial decision-making powers. But our leaders accepted it. In the early hours of these ‘independence-granting’ times, several articles emerged analysing and describing the CFA franc system. A pertinent one was issued in 1963 by the International Monetary Fund (IMF), explaining:

In the past two years, all the countries of former French West Africa and of former French Equatorial Africa, and also Cameroon, the Malagasy Republic (Madagascar), and Togo, have become members of the International Monetary Fund. Except for Guinea, which established its own central bank and national currency on March 1, 1960, and Mali, which did the same on July 1, 1962, the currencies circulating in all these countries, as well as those circulating in the Comoro Islands, the Island of Reunion, and the islands of St. Pierre and Miquelon, bear the name CFA franc. (The initials formerly stood for Colonies Françaises d’Afrique and now stand for Communauté Financière Africaine.) In these various countries and territories, however, CFA francs are issued by six different central banks or institutes of issue, and the one issued by each of these is legal tender only in the area in which it is issued. It is possible therefore to distinguish six different CFA francs […] [1]

Divide and conquer, with consent. Fundamentally, as explained in another article by the same IMF in 1969, the features of the CFA franc system were ‘the guarantee of the parity and convertibility of the CFA franc into French francs by the French Treasury and the prudent policies pursued by the central banks, the executive boards of which include directors appointed by the member countries and by France. Convertibility is achieved through the mechanism of an operations account maintained by the central banks with the French Treasury.’[2]

Not much has changed today: the Franc Zone regroups 14 sub-Saharan African countries [3], the Comoro Islands, and France. The operations accounts are still operational. And added features include a devaluation of the CFA franc in 1994, the advent of the Euro, a yearly meeting of Franc Zone’s ministries where matters of importance are discussed, and votes taken that require unanimity. West and Central Africa still have two different central banks and convertibility is still guaranteed between the Euro and CFA franc, but not between CFA francs, which is a great incentive for French multinationals and rich Africans who invest in Africa and transfer funds to France, more advantageous transactions made easy by those colonial financial arrangements.

Investments with no return on investments benefiting Africa, and policies still dictated to us by France, making our currencies victim to fluctuations without our leaders being able to take any action. And we seem to still be accepting that we are too irresponsible to manage our monetary system, to own and make our own monetary and financial policies. Maybe we are. Maybe this system is too profitable for our leaders, who give ‘gifts’ in forms of financial resources to French political candidates and other international professionals, and who most probably all have shares in French companies making huge profits in African countries belonging to the Franc zone, needless to add: with complete disregard for the health, education, and basic rights of their citizens, to whom we have proven that 1960 was just an act of figuration (i.e. the act of representing figuratively). In other words, French West Africa has not, and will not decide to be independent for the benefit of its people. After half a century of having had independence taped on our foreheads, we are still confined within borders that for the most part we did not choose, and we are still using the CFA franc (please give this acronym the meaning that suits you best).

A common currency could be highly advantageous for Africa, starting with true independence, and efficient regional monetary integration. However, for that to have any benefit, we will need a central government, and an independent central bank, with independent monetary and budgetary policies. This will take time, effort, and above all, political will. In the meantime, for those of us celebrating 50 years of independence this year, we are proudly organising events, and are going to head the French military parade during their celebration on 14 July, all smiles, and oh so proud of the great honour bestowed upon us.

[1] ‘The CFA Franc System’ Staff Papers-International Monetary Fund, Vol. 10, No. 3, November 1963, pp 345-396

[2] ‘Financial Arrangements of Countries Using the CFA Franc’ Staff Papers-International Monetary Fund, Vol. 16, No. 2, July 1969, pp 289-389

[3] West Africa: Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo. Central Africa: Cameroon, the Central African Republic, Congo, Gabon, Equatorial Guinea, and Chad.

* The author, Sandra Zerbo, is with Trust Africa, Senegal

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