The CFA Franc Explained: How France Still Controls 14 African Economies

The CFA Franc Explained: How France Still Controls 14 African Economies

"When I see the CFA, I see my colonizer."

That's what a Senegalese coffee vendor told reporters in 2024. He's not alone.

In November 2024, a survey by Sciences Po found that 95% of West Africans want to leave the CFA franc system.

Yet 80 years after it was created, 14 African countries and 210 million people still use a currency that was designed in Paris, is printed in France, and remains pegged to the euro at a rate France guarantees.

The flags changed in 1960. The currency didn't.

What Is the CFA Franc?

The CFA franc is a currency used by 14 African countries in two separate monetary zones:

West African CFA Franc (XOF)

8 countries using the West African Economic and Monetary Union (UEMOA):

• Benin

• Burkina Faso

• Côte d'Ivoire

• Guinea-Bissau

• Mali

• Niger

• Senegal

• Togo

Central bank: BCEAO (Banque Centrale des États de l'Afrique de l'Ouest), based in Dakar

Central African CFA Franc (XAF)

6 countries using the Economic and Monetary Community of Central Africa (CEMAC):

• Cameroon

• Central African Republic

• Chad

• Republic of Congo

• Equatorial Guinea

• Gabon

Central bank: BEAC (Banque des États de l'Afrique Centrale), based in Yaoundé

Key Fact: They're Not Interchangeable

Despite having the same name and same value, you cannot use West African CFA francs in Central African countries or vice versa. A merchant in Togo cannot spend their money in Cameroon.

They are two separate currencies that happen to share a name and the same relationship with France.

What Does CFA Stand For?

The meaning has changed—conveniently—over time:

Same currency. Same control. New name.

How the CFA Franc System Works

The CFA franc operates under a set of rules that give France extraordinary control:

1. Fixed Exchange Rate to the Euro

Both CFA francs are pegged to the euro at a fixed rate:

€1 = 655.957 CFA francs

This rate doesn't change based on African economic conditions. It's set by agreement with France.

2. France Guarantees Convertibility

France guarantees that CFA francs can always be converted to euros. This sounds helpful, but it comes with strings attached.

3. Reserve Deposits in Paris (Central Africa)

Central African CFA countries (CEMAC) are still required to deposit 50% of their foreign exchange reserves with the French Treasury.

West African countries (UEMOA) were released from this requirement in 2019—though the "Eco" reforms have stalled.

4. France Had Seats on the Central Banks

Until 2019, French representatives sat on the boards of both African central banks with influence over monetary policy.

5. The Currency Is Printed in France

All CFA banknotes and coins are produced at Chamalières, France, by the Bank of France.

The Problem: What African Countries Cannot Do

Because of the CFA system, member countries cannot:

Why This Matters:

Example: Export Competitiveness

When a country's exports become too expensive, it can normally devalue its currency to make goods cheaper on world markets. China does this. The US has done this.

CFA countries cannot. Their currency value is locked to the euro—a currency designed for wealthy European economies, not developing African ones.

Example: Economic Crisis Response

During the 2008 financial crisis and COVID-19, many countries printed money or adjusted interest rates to stimulate their economies.

CFA countries couldn't respond independently. Their hands were tied by the peg.

The History: Created for Colonial Control

The CFA franc was created on December 26, 1945, when France ratified the Bretton Woods Agreement.

Why France Created It:

After WWII, the French franc was weak. France devalued it to set a fixed exchange rate with the US dollar.

But France didn't want its colonies to benefit from cheaper imports (which would come with a devalued currency). So it created separate colonial currencies at a higher value—making it easier for colonies to import French goods and harder for them to develop competing industries.

The CFA was designed to serve France, not Africa.

After Independence:

When African countries gained independence around 1960, most kept the CFA. Why?

• Leaders who rejected it (like Guinea's Sékou Touré) faced French retaliation

• The system was already entrenched

• France made continued "cooperation" conditional on monetary arrangements

• Some leaders genuinely believed stability outweighed sovereignty

The Arguments For and Against

Defenders Say:

Critics Say:

Senegalese economist Ndongo Samba Sylla:

"Long-term analysis of the GDP per capita indicator proves that countries that have used the CFA since their independence have not recorded the development that they should have."

Togolese economist Kako Nubukpo called it: "Voluntary servitude."

The 2019 "Reforms": Real Change or Rebranding?

In December 2019, President Macron and Côte d'Ivoire's President Ouattara announced reforms to the West African CFA franc:

What Was Promised:

1. New name: CFA franc → "Eco"

2. No more reserve deposits in French Treasury

3. French representatives removed from BCEAO board

4. African countries gain more autonomy

What Didn't Change:

• Currency still pegged to the euro at same fixed rate

• France still guarantees convertibility (meaning France still has leverage)

• Currency still printed in France

• Central African CFA franc (CEMAC) not reformed at all—those 6 countries still deposit 50% of reserves in Paris

The Catch:

ECOWAS (the broader West African economic community, including Nigeria and Ghana) had been planning their own currency also called "Eco" for nearly 20 years.

By announcing a Francophone-only "Eco" first, France effectively hijacked the name and complicated regional integration that would have put Nigeria—not France—at the center.

Current Status (2025):

The reforms have stalled. The "Eco" hasn't been implemented. Target dates have been missed repeatedly. The latest ECOWAS target is now July 2027.

Meanwhile, Senegal's new Prime Minister Ousmane Sonko stated in May 2025 that the CFA franc "poses both a symbolic and economic problem."

The Rebellion: Sahel States Breaking Away

The most dramatic challenge to the CFA is coming from the Sahel.

The Alliance of Sahel States (AES)

In 2023-2024, three countries announced their intention to leave both ECOWAS and potentially the CFA franc:

• Mali (coup 2020, 2021)

• Burkina Faso (coup 2022)

• Niger (coup 2023)

These military governments have:

• Expelled French troops

• Turned toward Russia for security partnerships

• Explicitly rejected French economic influence

• Discussed creating their own currency

The Challenge:

Together, Mali, Burkina Faso, and Niger represent only about 8% of ECOWAS GDP. Creating a new currency from scratch is enormously difficult:

• Need foreign exchange reserves

• Need credibility with trading partners

• Need printing/minting capacity

• Risk hyperinflation if mismanaged

Ghana and Nigeria—countries with their own currencies—have faced severe currency crises. The Ghanaian cedi was the world's worst-performing currency in 2022.

But critics argue this comparison is unfair: those countries' problems stem from different causes, and the CFA's "stability" may simply mask stagnation.

What Leaving Would Look Like

Countries can leave the CFA franc. Some already have:

Options for Reform:

1. Keep CFA but renegotiate terms — More reserves kept in Africa, more policy flexibility

2. Create regional currency — ECOWAS "Eco" covering 15 countries including Nigeria

3. Create national currencies — Each country independent (most difficult)

4. Create AES currency — Mali, Burkina Faso, Niger forge their own (announced direction)

Frequently Asked Questions

What is the CFA franc?

The CFA franc is a currency used by 14 African countries, backed by France. It exists in two versions (West African and Central African) that are not interchangeable. Both are pegged to the euro at a fixed rate guaranteed by France.

Why is the CFA franc controversial?

Critics call it a colonial relic that limits African economic sovereignty. Countries cannot set their own interest rates, devalue their currency, or fully control their monetary policy. Some must still deposit 50% of reserves in the French Treasury.

How many countries use the CFA franc?

14 countries: Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo (West Africa), and Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, Gabon (Central Africa). Combined population: ~210 million.

Is the CFA franc the same as the euro?

No, but it's pegged to the euro at a fixed rate (€1 = 655.957 CFA). The value moves with the euro, and France guarantees convertibility. This effectively means European monetary policy influences CFA economies.

Can countries leave the CFA franc?

Yes. Guinea, Madagascar, and Mauritania have left permanently. Mali left and later rejoined. Currently, Mali, Burkina Faso, and Niger are discussing exit. However, leaving is economically risky without careful preparation.

What is the "Eco" currency?

The "Eco" is a proposed replacement for the CFA franc, announced in 2019. It would drop the colonial name and end reserve deposits in Paris. However, implementation has stalled, and it would remain pegged to the euro with French guarantee—leading critics to call it "CFA franc with a new name."

Why do African countries still use the CFA franc?

Multiple reasons: fear of instability if they leave, entrenched systems, pressure from France, some genuine belief in stability benefits, and lack of viable alternatives. The 2024 survey showing 95% want to leave suggests public opinion has shifted dramatically.

The Deeper Question

The CFA franc isn't just about money. It's about power.

When you control a nation's currency, you influence:

• What it can import and export

• How it responds to crises

• Whether it can invest in its own development

• Its relationships with other countries

Monetary sovereignty is the final frontier of African liberation. Flags and anthems came in the 1960s. Currencies, for 14 countries, still haven't.

As Senegal's Prime Minister Ousmane Sonko put it: "Currency is a question of sovereignty."

The colonizers drew the borders. They wrote the constitutions. They trained the armies.

And for 14 countries, they still print the money.