CFA - the political legacy of French colonialism

CFA - the political legacy of French colonialism Contents 1. The CFA Franc 2. History of the CFA Franc 3. Advantages and Disadvantages 4. France in Africa 5. ECO – The Possible New Currency 6. Economies in the CFA Area 7. Countries with CFA Francs 8. Prominent Opinions on the CFA

1. The CFA Franc "The CFA franc, as a currency used by several West and Central African countries, embodies the complex economic and political legacy of French colonialism in Africa. It offers monetary stability while simultaneously limiting the full economic sovereignty and development potential of member states." 2. History of the CFA Franc The history of French colonization in Africa is a profound chapter that continues to shape the continent to this day – from language and architecture to political structures. This history can be roughly divided into two phases: the “First Colonial Empire” (before 1830) and the “Second Colonial Empire”, which encompassed most of Africa. In a French context, the term "First Colonial Empire" usually refers to the first French colonial empire, which began its development in the Age of Discovery in the 16th century. This empire comprised overseas territories in the New World, Asia, and Africa, conquered or established by France. By the beginning of the 19th century, however, it was significantly weakened due to rivalries with Great Britain and other colonial powers, as well as the Napoleonic Wars. As early as the 17th century, France established its first trading posts on the West African coast, particularly in what is now Senegal (Saint-Louis). The primary focus was trade (gum arabic, gold), and unfortunately, also the transatlantic slave trade. At that time, France controlled only small coastal strips, not the hinterland. Regarding French possessions in Africa before 1830, the French presence there was limited and did not constitute a large-scale colonial system. France's main interests in the 16th to 18th centuries were concentrated in other regions – the Americas, India, and the Caribbean. Some facts about the French presence in Africa before 1830: In the early modern period, France showed interest in exploring new lands, but Africa was not a priority. The desire to expand beyond the Mediterranean was linked to the fact that the eastern part of the continent was under the rule of the Ottoman Empire. Before 1830, France had no significant territorial gains in Africa that could have formed the basis for a large-scale colonial system. In the 18th century, France participated in the Seven Years' War (1756–1763), as a result of which it lost many of its overseas possessions in the Treaty of Paris, including territories in India and America. This weakened its position as a colonial power. A turning point was the beginning of the colonization of Algeria in 1830. In July 1830, a French expedition conquered Algiers, marking the beginning of the second French colonial empire. The conquest of Algeria was linked to internal political problems in France (the July Revolution of 1830) and economic interests – the search for new markets and settlement areas for the surplus population. By 1847, the French had completely conquered Algeria. In 1848, it was declared a French territory and divided into departments headed by prefects and a French governor-general. Algeria developed into an important colonial center through which France expanded its possessions in Africa during the 19th century. Until 1830, France did not possess a large-scale "first colonial empire" in Africa. The term "first colonial empire" more often refers to an earlier empire that emerged between the 16th and 18th centuries, but whose main territories lay outside Africa. Active colonization of Africa only began after 1830 with the conquest of Algeria. France's "Second Colonial Empire" began in the early 19th century, after the first empire had largely collapsed. Its beginning is marked by the invasion of Algeria in 1830, which launched a massive expansion in Africa. The main stages of expansion were the French invasion of Algeria. In 1848, Algeria was officially incorporated as three French départements (Algiers, Oran, Constantine) — a sign of profound integration into the state. Algeria served as a starting point for further expansion in North and West Africa. Systematic conquest and consolidation of territories along the Senegal River, including present-day Senegal, Mali, Burkina Faso, Niger, Mauritania, Guinea, Ivory Coast and Benin. Key figures: Generals Louis Faidherbe and Hubert Lyautey, as well as researchers and officers such as Pierre Savorgnan de Brazza. Establishment of colonies in the Congo region and on the banks of the Congo River. Pierre Savorgnan de Brazza concluded treaties with local leaders (e.g. Makoko of Teke), which led to the Congo-Français protected area (later Central Congo). The borders were internationally recognized at the Berlin Conference (1884–1885). After decades of conflict, Madagascar was officially declared a French colony in 1896. Acquisition of Djibouti (formerly Côte française des Somalis) as a strategic port on the Red Sea. Protectorates and spheres of influence in Morocco (from 1912) and Tunisia (from 1881). France's colonial empire in Africa was divided into four major administrative units: West Africa, Equatorial Africa, North Africa and Madagascar. French West Africa (Afrique Occidentale Française, AOF, founded in 1895): comprised eight colonies (including Senegal, Ivory Coast, Guinea, Mali). French Equatorial Africa (Afrique Équatoriale Française, AEF, founded in 1910): Cameroon (temporarily), Gabon, Central Congo, Ubangi-Shari (now Central African Republic), Chad. North Africa: Protectorates of Tunisia and Morocco; Algeria as an integral part of France. Madagascar and Djibouti as separate colonies. France had various administrative models: "Assimilation": Algeria was to be fully integrated into France; some locals were able to obtain French citizenship. "Association": In other colonies, local structures were partially preserved, under strict French supervision. Centralized, command-oriented administration from Paris; governors and plenipotentiaries had great power. France's economic and political goals were the Raw material extraction such as rubber, gold, copper, cotton, coffee, cocoa. Then plantation agriculture, such as cotton and sugarcane plantations, sometimes involving forced labor. Infrastructure needed to be improved, including railways and ports that were built to enable the transport of raw materials (e.g., the Dakar-Niger Railway). The civilizing mission (mission civilisatrice) was an ideological justification of colonial rule as "bringing civilization, education and Christianity". The strategic positions include ports on the Red Sea (Djibouti), bases in the Atlantic and Indian Oceans. Cultural and social influence of France in its colonies. Introduction of French as the official and educational language. Schools and hospitals were founded, but their availability was highly uneven and often only for an elite. Migration of French people to Algeria (Pieds-Noirs) led to the formation of large settler communities. Suppression of local languages and traditions; increasing resistance to colonial rule. Nothing stays the same. Decline and end. The period between the wars was the height of its power. The Paris Colonial Exhibition of 1931 showcased the empire's wealth. After the Second World War, France had to come to terms with growing nationalism and independence movements. Decolonization began: 1956: Independence of Tunisia and Morocco. 1960: "Year of Africa" — the majority of French colonies in West and Central Africa become independent. The Algerian War of Independence (1954–1962) ended with the independence of Algeria. France's "Second Colonial Empire" in Africa stretched from the invasion of Algeria in 1830 to the mass decolonization around 1960. It encompassed large parts of West, Central, and North Africa and was characterized by centralized administration, economic exploitation, and the ideology of the mission civilisatrice. Although it brought France enormous economic advantages, it also led to long-lasting social, political, and cultural tensions, the consequences of which are still felt today. 3. The advantages and disadvantages The African states that use the CFA franc are formally sovereign and make their own decisions. However, there is a controversial debate about the extent to which these countries are truly economically and politically independent, or whether they continue to be influenced or controlled by France. The CFA franc is a monetary union that pegs the currencies of several Francophone African countries to the euro (formerly the French franc). This peg offers certain advantages, such as stability and low inflation, but also limitations, as monetary policy is heavily influenced by France and the European Central Bank. Furthermore, France traditionally holds reserves from the CFA countries and has a say in key economic decisions. Many critics see this as a form of neocolonial control, since France has fostered a network of loyal elites in West Africa for decades, and the CFA franc is considered an instrument of this influence. However, there are also voices that emphasize that the member states of the CFA zone determine their own destiny and that the monetary union brings advantages to their economies. In recent years, there have been reforms and discussions about greater independence, for example through the introduction of new currencies (such as the ECO in West Africa) intended to replace the CFA franc. Nevertheless, the debate about the actual freedom of these states from France and economic control through monetary policy remains a complex and controversial issue. The African states that use the CFA franc are formally independent, but many experts and critics still see strong economic and political influence from France, which can limit their full sovereignty. 4. France in Africa The CFA franc (Franc des Colonies Françaises d'Afrique, franc of the French colonies in Africa) was created in 1945 as an instrument for controlling the economies of the French colonies in Africa. Its introduction was part of a broader strategy for administering the territories in the post-war period and maintaining France's economic influence after the end of colonial rule. France was one of the most important colonial powers in Africa during the 19th and early 20th centuries, controlling large parts of West, Central and North Africa as well as islands such as Madagascar. The main areas of French colonial rule were, and in some cases still are, French West Africa (1895–1960): a federation that included, among others, Senegal, Mali, Burkina Faso, Niger, Ivory Coast, Benin, Togo, and Mauritania. Then there was French Equatorial Africa (1910–1960): comprising primarily Cameroon, Chad, the Central African Republic, Gabon, and Congo-Brazzaville. In North Africa, there was Algeria from 1830, the protectorate of Morocco in 1912, and Tunisia, which was occupied in 1881. Finally... Madagascar was a French protectorate from 1885/1896, gaining independence in 1960. The CFA franc was introduced on December 26, 1945, simultaneously with the CFP franc. The primary reason for creating the new currency was the weakness of the French franc after World War II. With the ratification of the Bretton Woods Agreement (a fundamental agreement establishing the international monetary order after World War II, negotiated in Bretton Woods, New Hampshire, in 1944) in December 1945, the French franc was devalued to establish a fixed exchange rate with the US dollar. To mitigate the impact of the devaluation on colonial economies, a separate currency, the CFA franc, was created. After the Second World War, its main purpose was to guarantee the link to the stable French franc and to facilitate the export of raw materials from the colonies to France. The original goal was to stabilize the colonial economies and facilitate trade between the African territories and France. The single currency allowed France to maintain financial control over the colonies, thereby making them economically dependent and aligning them with French interests. The CFA franc system continued to serve as an instrument for maintaining French influence even after the political independence of African states in the 1960s. Despite decolonization, many African states opted for the CFA franc due to the economic stability it offered. The transition from colony to independent state was complex, and many new states lacked the infrastructure and financial institutions to manage their own currencies. However, retaining the CFA franc meant that the countries had to agree to continued French control over their monetary policy. Despite their political independence, these states remained economically tied to France, which fueled the debate about the true extent of their sovereignty. Some key aspects of the connection between the CFA franc and the colonial legacy: The CFA franc was pegged to the French franc and later to the euro. This allowed France to control the value of the currency and influence the economic policies of participating countries. As a result, the CFA countries adopt the monetary and interest rate policies of the French (or later the European) central bank, which severely restricts the scope for independent expansionary monetary policy to stimulate the economy. France has seats on the governing boards of African central banks (e.g. BCEAO, BEAC) and thus a right of veto in important decisions. A large portion of the foreign exchange reserves of the CFA franc countries had to be deposited in the Banque de France, which gave France political pressure and economic influence. Initially, this share was 100%, later 65% (until 1973), and finally 50%. These funds were invested in France, and the countries received no detailed reports on their use. The fixed peg to the euro often leads to a real overvaluation of the CFA franc, which makes exports from Africa more expensive and weakens local industry in relation to imports from France and other foreign countries. The countries remain heavily reliant on raw material exports (e.g., cotton, coffee, oil), while diversification and industrialization are hampered by rigid currency regulations and limited scope for economic policy. This has solidified neocolonial relationships and restricted opportunities for local industrial development. Today the CFA franc is used in two currency unions: The West African Economic and Monetary Union (WAEMU), which comprises eight countries (e.g., Senegal, Ivory Coast, Mali).¹ The Central African Economic and Monetary Community (CEMAC), which unites six countries (Cameroon, Gabon, Chad, etc.).¹ Despite reforms and discussions about reforming or replacing the CFA franc, the system still exhibits many inherited characteristics. Originating in the colonial era, the CFA franc is described by critics as a "colonial legacy" and an instrument for maintaining French influence in Africa. In recent years, several countries have expressed a desire to change the system or switch to other currencies (for example, in 2019, eight West African countries announced their intention to replace the CFA franc with the "Eco" currency). However, the future of the CFA franc remains a subject of debate. 5. ECO - the possible new currency The ECO is the planned single currency of the Economic Community of West African States (ECOWAS) and is intended to replace the national currencies of the region's 15 member states. The project aims to deepen economic integration, facilitate trade, and improve financial stability. The currency's introduction has been repeatedly postponed, but the current target date remains July 1, 2027. The idea of a single currency in ECOWAS has been discussed since the 2000s. Initially planned for introduction in 2020, the date was repeatedly postponed due to economic inequalities, fiscal problems, and political disagreements. In June 2021, the ECOWAS heads of state and government adopted a roadmap for the currency's introduction in 2027. In February 2026, the central bank governors of the twelve ECOWAS member states reaffirmed their commitment to introducing the ECO in 2027. However, it was reported that the countries of the West African Economic and Monetary Union (UEMOA) – eight countries already using the CFA franc – might not participate in the first phase of implementation. According to the Nigerian presidential administration, Liberia, Nigeria, Ghana, Sierra Leone, Guinea, and Gambia could be included in the first wave of potential participants, provided the macroeconomic convergence criteria are met and the institutional governance structures are finalized. To participate in the project, countries must meet strict economic and fiscal standards set by the West African Monetary Institute (WAMI). Key criteria include: a single-digit inflation rate at the end of the year; Budget deficit of no more than 4% of GDP; Deficit financing by the central bank of a maximum of 10% of the previous year's tax revenues; Foreign exchange reserves sufficient to cover imports for at least three months. Other criteria include the absence of new domestic debt, a ratio of tax revenue to GDP of at least 20%, a ratio of wage expenditure to tax revenue of no more than 35%, and others. Reducing barriers to currency trade can significantly boost intraregional trade. Eliminating currency conversion reduces costs for businesses and consumers. A single currency makes it easier to compare prices between countries, increases market transparency and can potentially lower consumer prices. Creating a more stable economic area can attract foreign direct investment (FDI). A common currency will strengthen relations between member states, facilitate cross-border transactions and increase regional stability. Member states are abandoning their independent monetary policy, thereby limiting their ability to respond to local economic problems. ECOWAS can impose fiscal policy restrictions, which makes expansionary fiscal policy more difficult during economic downturns. Significant differences in the level of development of the member states could lead to imbalances. Since ECOWAS is to be pegged to the euro, the region could absorb the volatility of the European currency. The withdrawal of some countries (such as Burkina Faso, Mali and Niger) from ECOWAS in 2024 due to sanctions following military coups has complicated the process. The establishment of ECOWAS is seen as a step towards economic independence from external influences. In particular, it aims to reduce dependence on France, which historically controlled the CFA franc, a currency used by some West African countries. ECOWAS remains pegged to the euro, but member countries are no longer required to hold 50% of their currency reserves in France. Parallel to the ECOWAS project exists the Alliance of Sahel States (AES), which has introduced Sira, a digital currency backed by gold and mineral resources. This is leading to a division in the region: ECOWAS promotes a gradual transition within existing global financial structures, while the AES strives for full monetary sovereignty. The success of the ECOWAS project depends on whether the participating countries can coordinate their economic policies and implement the necessary reforms. 6. Economies in the CFA area The economies of the CFA countries (West and Central Africa) are primarily characterized by raw material exports, agriculture and small and medium-sized enterprises, and generally have low per capita incomes, but moderate growth rates in many countries. Gross domestic product per capita across the CFA zone ranges from about 500 to over 6,000 US dollars; many are "Least Developed Countries" (including Togo, Mali, Niger, Central African Republic). Annual growth rates usually range between about 2 and 6 percent, placing them in the global middle range, but with strong fluctuations depending on commodity prices and political stability. Agriculture employs a large part of the population; important export goods include cotton (e.g. Benin, Burkina Faso, Mali, Togo), coffee, cocoa beans and precious stones (diamonds, gold). Several countries (e.g. Gabon, Republic of Congo, parts of Cameroon and Chad) are – or were – heavily dependent on crude oil exports, which strongly links their economic performance to oil price fluctuations. Industry is underdeveloped; only a small fraction of the cotton or other raw materials produced are processed locally, which favors value creation and jobs abroad. Domestic trade within the CFA zones of West and Central Africa remains low (around 15 percent of trade), while trade outside the zone and with France/Europe predominates. 7. Countries that are CFA stud farms The countries that withdrew from the CFA franc – Burkina Faso, Mali, and Niger – face very different economic challenges in 2026. Burkina Faso is relying on a new development plan, Mali is struggling with the consequences of military rule and security problems, while Niger is benefiting greatly from oil and mining investments. Burkina Faso National Development Plan 2026–2030: A budget of USD 64 billion, focusing on security, governance, human capital, and infrastructure. Approximately 34.5% of the funds are earmarked for investment. The country remains under an IMF (Extended Credit Facility) loan program, supplemented by a resilience and sustainability program. Since 2022, under a "de facto government", international partners have resumed cooperation. Despite political uncertainty, Burkina Faso is attempting to transform its economy and make growth more inclusive through massive investments. Mali Since the military coups of 2020 and 2021, the country has been under military rule; all key positions are held by military personnel. Projected GDP growth: approx. 5.5% Inflation - moderate at 2.2% Dependence on gold and cotton exports Uncertainty, climate risks and weak productivity are weighing on development Approximately 235,000 young people enter the labor market each year; job creation remains critical. Mali shows moderate growth rates, but remains highly vulnerable due to security situation, climate change and lack of diversification. Niger Economic growth - approximately 7% in 2025, 6.7% expected for 2026. Oil production (forecast: 35 million barrels in 2026) Mining expansion and international investments Almost 50% of the population still live in extreme poverty. Dependence on rain-dependent agriculture (approx. 40% of GDP) makes the country vulnerable to climate shocks. Niger benefits greatly from its raw materials sector and investments, but remains socially and structurally fragile. In summary, Niger currently has the strongest growth rates thanks to oil and mining, Burkina Faso is focusing on long-term transformation through investment, while Mali, despite moderate growth, remains hampered by political and security uncertainties. 8. Prominent Voices on the CFA Prominent politicians criticize the CFA franc primarily as a symbol of West Africa's neocolonial dependence on France. Marine Le Pen called it a "drame pour l'économie africaine" (a tragedy for the African economy) and demanded its abolition. Emmanuel Macron has stated his openness to reform or abolition. Marine Le Pen, president of the National Rally, shares the African criticism and sees the CFA franc as a barrier to economic sovereignty. Emmanuel Macron responded to protests in Ouagadougou and Abidjan by announcing plans to replace the currency with a new "Eco" to loosen its peg to the euro. Thomas Sankara, former president of Burkina Faso, fought against the system, which parked 65% of foreign exchange reserves in French vaults, and is considered a pioneer of the anti-CFA movement. Marine Le Pen, president of the National Rally, shares the African criticism and sees the CFA franc as a barrier to economic sovereignty. Ousmane Sonko, a Senegalese opposition politician, has made the abolition of the CFA franc a central campaign issue, speaking of "voluntary servitude." Togolese economists like Kako Nubukpo criticize the systematic dependency, while Alassane Ouattara, President of Ivory Coast, defends the system. In Burkina Faso and Senegal, criticism is growing among young people and activists. Italy's Deputy Prime Minister Luigi Di Maio called the CFA franc an example of France's ongoing oppression. German politicians like Olaf Scholz rarely comment directly on the issue. The debate revolves around sovereignty, inflation, and growth.