The CFA Franc is the common currency used by 14 African states, divided into two distinct zones: the West African Economic and Monetary Union (UEMOA) and the Central African Economic and Monetary Community (CEMAC). It exists in two forms: West African and Central African, both pegged to the euro at 1 euro = 656 CFA.

A Controversial and Misunderstood Currency!

Since its creation, the currency has been the subject of much debate. Its use has certain advantages. Operating on a fixed parity with the French franc, and later the euro, and backed by centralized foreign exchange reserves (half of which were held by the French Treasury), this currency has been a symbol of stability for the economies of West and Central Africa. Its unchanging conversion rate ensures the trust of international markets, encouraging investment in the region. It also limits inflation, preventing states from resorting to "printing money." Finally, it was intended to facilitate trade within the region.

The CFA has brought stability, with countries using it experiencing much lower inflation than their neighbors. For example, inflation in CFA-using Côte d'Ivoire has averaged 6% in the last 50 years, compared to 29% in Ghana. Despite criticisms, the CFA has not hindered progress, as countries that left the CFA, such as Guinea, Madagascar, and Mauritania, saw their currencies lose significant value after departure.

However, this monetary collaboration between France and its former colonies has been criticized. For some, it represents the persistence of "Françafrique," the post-colonial relationship between the French mainland and its conquered territories. In this context, the CFA franc is seen as a limit to the sovereignty of states that are now independent, with the name "franc" symbolizing the continued influence of France.

The CFA’s stability and fixed exchange rate have kept many countries in the zone, with non-Francophone nations like Guinea Bissau and Equatorial Guinea joining it later. Even when devalued in 1994 by 50%, it led to increased exports and GDP growth, despite initial price hikes for imports.

Beyond the symbolism, it is the ambivalent economic effects of the currency that are criticized. The association with a strong currency, the euro, is seen as detrimental to trade, as it worsens the terms of exchange. While the CFA franc discourages local industrial production by making imports more competitive and penalizing exports, it is far from being the sole factor in the region's difficulties, as evidenced by the comparable economic situations of countries that abandoned it (Guinea in 1960, Madagascar in 1972, and Mauritania in 1973).

Critics often overlook the CFA's role in promoting trade, economic stability and fail to explain why countries that could leave it, like Mali, stay. The debate overlooks the economic struggles of non-CFA countries and the fact that many CFA members willingly remain due to its advantages.

Few years back, French President Emmanuel Macron and Ivorian President Alassane Ouattara announced the end of the CFA franc, which had been in place since 1945, accompanied by a deep reform of monetary cooperation between France and Africa. How can the disappearance of this currency be explained, and what will it be replaced with?

The announced disappearance of the CFA franc thus represents a financial, economic, and political challenge. It was set to be replaced in West Africa by a new currency, the eco, starting in 2020. But this never happened or at least after more than five years, not yet in 2025!

Although the CFA has flaws, particularly due to France’s involvement, Africans should decide their future currency systems. Solutions like the eco, the afro, or even cryptocurrencies could provide more sovereignty. While some critics blame France for Africa's issues, many Africans take responsibility for their own affairs. The CFA may be imperfect, but it has kept many countries from financial chaos and remains a stable option for many.

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