The CFA Franc: A Stabilizing Force or Neocolonial Relic in West Africa?

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Brandon Locke
STRATEGIC ADVISER FOR SECURITY POLICY AND PLANNING

At a Glance:

The CFA Franc has undoubtedly provided general macroeconomic stability across West Africa for several decades, however its efficacy is challenged by the region’s poor economic integration, and weak integration into global value chains. This report finds that while criticism of the CFA franc as a mere neocolonial tool may oversimplify more complex dynamics, it is clear that the CFA supported a counterproductive logic focused on facilitating trade with France and developed countries, rather than tightening economic ties between African states, which distorted natural patterns of growth and regional integration. It argues that in order to reverse this trend, the WAEMU and the CEMAC should consider differentiated reforms to improve monetary flexibility and allow the CFA franc to fluctuate by tying the exchange rate to a basket of currencies.

 

Download the full report here (PDF)