The currency change changes nothing about French colonization in Africa
President Alassane Ouattara of Cote d'Ivoire delivers remarks before signing a new compact to spur economic growth and private investment in the Francophone West African nation. November 7, 2017, Washington, DC. Photo via the United States State Department, public domain.
On December 21, 2019, President Alassane Ouattara of Cote d'Ivoire and Emmanuel Macron of France announced a major currency reform in several West African Francophone countries.
In 2020, eight Francophone West African countries belonging to the West African Economic and Monetary Union (WAEMU) will rename their CFA franc to Eco: Benin, Burkina Faso, Cote d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
As part of this agreement, French officials will no longer be represented on the governing bodies of these African central banks and member states will no longer keep half their foreign reserves in France, reported France 24.
But the currency reform does not change the fact that 14 West African countries still pay a colonial-era tax to France and the harsh legacy of French colonialism persists.
CFA franc banknote of 5,000. October 31, 2009, via Wikimedia/West African Economic and Monetary Union.
Originally called the French Colonies of Africa, the CFA franc currency morphed later into the African Financial Community in West Africa. The Financial Cooperation in Central Africa was established in 14 former French colonies upon gaining independence.
The Central African Economic and Monetary Community (CEMAC), made up of Chad, Cameroon, the Central African Republic, Democratic Republic of Congo, Equatorial Guinea and Gabon, is not currently part of the agreement, though it also uses a version of the CFA franc.
The French franc became the benchmark for the CFA franc after World War II, according to financial analyst Frances Coppola. In 1999, when France took up the currency of the European Union, the euro was “hard-pegged” to the CFA:
Both versions of the CFA franc are hard-pegged to the euro. When the CFA franc was first created, it was pegged to the French franc at 50 CFA francs to 1 French franc. It was devalued in 1994 and then remained at 100 to 1 until France adopted the euro in 1999. At that point, the French franc was converted to the euro at 6.55957 to 1. The CFA franc’s currency exchange rate thus became 655.957 to 1 euro, where it remains pegged to this day.
A legacy of French colonial debt
Despite this largely symbolic break from a colonial history with France, 14 countries still pay a colonization tax enforced by France: Benin, Burkina Faso, Senegal, Cote d'Ivoire, Mali, Niger, Togo, Cameroon, Central African Republic, Guinea Bissau, Equatorial Guinea, Chad, Congo-Brazaville, and Gabon.
Through “a colonial pact,” France forced these countries to “put 85 percent of their foreign reserve into France Central Bank,” under the control of the French minister of finance, journalist Mawuna Koutonin wrote in 2014.
“African leaders who refuse are killed or victim of a coup. Those who obey are supported and rewarded by France with a lavish lifestyle while their people endure extreme poverty and desperation,” Koutonin wrote.
On Twitter, feminist scholar and writer Judicaelle Irakoze outlined all the ways in which these 14 former French colonies in West Africa still pay colonial taxes to France as their former colonizer, despite the fact that many have recognized that France would not hold the power it does without its dependence on those taxes.
French leader Jacque Chiraq once stated that “without Africa, France will slide down into the rank of a third [world] power.”
Since December 21, over 20,000 netizens have shared Irakoze's Twitter thread schooling readers on the history of French colonization and the ways in which former colonies are still locked into debt:
Since I can't sleep, A thread on France and the 14 african countries who still pay tax colonies up to now.
I know we cannot compare colonizers but France as a state continues to the most racist and white supremacist and thriving on colony taxes!
— Feminist in Chief (@Judicaelle_) December 21, 2019
Irakoze details how in 1958, when Guinea fought for independence, the French who lived in Guinea caused mass destruction destroyed everything. Ahmad Sékou Touré resisted and became the first president of Guinea. When Mali followed, resistance fighter Modiba Keita was assassinated by the French and to this day, Mali agrees to pay taxes to France. In 1963, Togo also agreed to pay France.
Burkina Faso has also paid taxes to France since its independence. Thomas Sankara attempted to cancel this agreement and cut ties with the French but was killed months later. Subsequent leadership restored the tax.
Writer Rosebell Kagumire notes the irony of the currency change announcement on the same day as Sankara's birthday:
On this Holy Day that is Thomas Sankara’s birthday and coloniser announces half withdrawal from the economies of African countries!
France must end this nonsense, a their being a guarantor of new African currency in 2019 is shameful and shows how long we still have to go— Rosebell Kagumire
(@RosebellK) December 22, 2019
Irakoze continues to explain the various ways in which leaders who resisted France paid with their lives. In the Central African Republic, the first president, David Dacko, was also killed for resisting the French, in 1966. And in Benin, former “President Hubery Maga was assassinated in 1972 after he refused to bend for the French. News on the streets say that he was killed by his guard who attended a French military school,” tweeted Irakoze:
6. Benin was the 6th country to join the colonial taxes wagon. It was after President Hubery Maga was assassinated in 1972 after he refused to bend for the French
News on the streets say that he was killed by his guard who attend a French military school
— Feminist in Chief (@Judicaelle_) December 21, 2019
New currency move at odds with regional goals
The Economic Community of West African States (ECOWAS) also plans to launch a regional currency called Eco by 2020 that is not pegged to the euro.
The New York Times described President Alassane Ouattara of Cote d'Ivoire's move to peg the new currency to the euro as a “hijacking” of the Eco that will likely disrupt ECOWAS plans. This is because the seven other ECOWAS countries all have separate currencies with heavy government restrictions on their exchange rates.
Established in 1975, ECOWAS is made up of Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.
To float a common currency, all 15 ECOWAS countries must meet the following criteria: “A deficit of less than 3 percent of gross domestic product, inflation of 10 percent or under and debts worth less than 70 percent of GDP.” But none of these countries have achieved these criteria, reports the AFP.
The ‘continuation of colonization’
In June 2019, Chihombori-Quao, former ambassador of the African Union (AU) to the United States, stated that France takes over $500 billion from Francophone African countries based on a pact they forced these countries to sign before they were granted independence. She made these remarks in a presentation, “The Pact for the Continuation of Colonization,” televised by the Washington-based Center African Broadcasting Network (CABN).
Chihombori-Quao was fired by the AU on November 1, 2019, for her criticism of France.
In January this year, Luigi di Maio, Italian deputy prime minister, accused the French of exploiting Africa and fueling migration. Maio said that France had “never stopped colonizing tens of African states,” the BBC reported. Maio further stated that were it not for Africa, France would rank 15th among world economies — not in the top six.
The currency name change is symbolic and historic, but it does not undo years of French colonization in West African Francophone countries.
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