In 1960, most of French Africa gained its independence. Or did it? The flags changed. The anthems changed. But the money? That stayed firmly in French hands.
Independence brought new flags and anthems, but France kept the real power: control over African money.
The CFA franc was born in 1945, crafted by France's provisional government as the currency for its African colonies. The name itself tells the story: *franc of the French colonies in Africa*. Even after abolishing slavery, France compensated the slave owners by creating colonial banks like the Bank of Senegal in 1853 and the Bank of West Africa. These institutions didn't just facilitate trade. They cemented control.
Fast forward to independence. The colonial monetary structures? Preserved. Fourteen African countries still use the CFA franc today, pegged first to the French franc and now to the euro. This isn't some neutral arrangement. It's a straightjacket. Member states can't pursue independent monetary policy. They can't devalue to boost exports. They can't print money during crises.
Here's where it gets worse. CFA zone central banks must deposit 50% of their foreign exchange reserves in French Treasury operating accounts. Another 20% goes to financial liabilities. That leaves 30% at home. France guarantees unlimited convertibility to euros, sure, but at the price of total oversight.
The system operates like a perfectly designed extraction machine. France imports raw materials from its former colonies using its own currency, conserving dollars. French businesses get preferential market access. Meanwhile, African governments lack the fiscal and monetary flexibility to fund development projects or diversify their economies. Exchange rates? Set by French and eurozone authorities, not by Africans. The three CFA subregions—West Africa, Central Africa, and Comoros—can't even exchange currencies directly with each other; transactions route through France. The XOF serves West African nations while the XAF circulates in Central Africa, yet these CFA currency pair variants remain isolated from direct exchange.
The elites who benefit from French ties have little incentive to change things. Regional economic cooperation gets blocked. Independent banking sectors remain stunted. France gets cheap resources and captive markets. African countries get symbolic sovereignty while real economic power stays in Paris. Between 1970 and 2008, Côte d'Ivoire alone lost $66.2 billion in illicit financial flows—roughly six times its external debt. The credit-to-GDP ratio in CFA countries hovers around 10–25%, while sub-Saharan Africa overall averages approximately 60%.
Independence changed the political facade. But monetary colonialism? That continues uninterrupted. The CFA franc isn't just a currency. It's a reminder that some chains don't need to be visible to be binding.
