The colonial currency, the CFA Franc, remains useful in Francophone African countries despite widespread criticism, the French Ambassador to Nigeria, Marc Fonbaustier, has said.
In an exclusive interview with PREMIUM TIMES, Mr Fonbaustier said the colonial currency provides monetary stability, low inflation, and a reliable peg to the Euro, which facilitates trade and investment both within the Francophone region and with Europe.
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Mr Fonbaustier said these benefits contribute to the decision of some Francophone countries, including members of the AES, who are “bullish on colonialism” to continue using the CFA.
The AES countries – Niger, Mali and Burkina Faso – have tried to break diplomatic and economic ties with France, and have split from ECOWAS following successful military coups.
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“CFA provides a remarkable currency exchange rate stability, and this is extremely important when you want to attract investors, when you want to keep a global balance on your macroeconomic trends, on your budget, and on your fiscal resources. It’s very important. When a currency is sloping or going upward, it’s not easy,” he said.
The CFA franc is a currency used mostly in Francophone West and Central African countries. In total, 14 countries use the currency: eight in West Africa and six in Central Africa.
CFA Franc is a remnant of colonial influence, more than 75 years after independence. It dates back to 1945, when France created it for its colonies in Africa to stabilise currencies and support economic integration under the colonial system.
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However, the CFA has long been criticised for its colonial origins and the disproportionate influence it gives France over African economies.
The currency, first pegged to the French franc and later the euro, restricts monetary flexibility, making it hard for countries to respond to local economic shocks, according to experts.
But Mr Fonbaustier pushed back against the criticism that France still exerts direct control over these countries’ currencies.
He stated that the reforms implemented between 2018 and 2019 in West Africa significantly reduced France’s role in the region’s monetary institutions.
Mr Fonbaustier referred to the December 2019 Abidjan Accord, which ended the requirement that the West African Economic and Monetary Union (WAEMU) maintain 50 per cent of its exchange reserves in the French treasury.
WAEMU is an organisation of the eight West African countries that share a common currency and economic policies.
Mr Fonbaustier also argued that France is no longer involved in the governance of the Central Bank of West African States, which manages the currency for members of the West African Economic and Monetary Union.
He further stated that the use of the CFA Franc is no longer a colonial imposition but a voluntary choice of independent states.
READ ALSO: Nigeria’s renewed closeness with France did not start under Tinubu — French Ambassador
“For instance, Mali left the Monetary Union of West Africa in 1962. Then they came back in 1984. Mauritania decided to leave in 1973. But Guinea-Bissau decided to join in 1997. So it’s just to illustrate to you the fact that we are again confronted with a sovereignty policy,” he said.
The ambassador noted that similar progress has not been recorded in Central Africa, and attributed this to the “degree of maturity for structural reforms” that the region has achieved.
“I just think the degree of maturity of the debate has been faster in West Africa,” he stated.
“I would not comment too much on Central Africa, because it is not my area of competence, you will understand. But the onus is not on France. These countries have to align their views and position,” he added.
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