Elected on a promise of radical reforms in 2024, Senegal’s president, Bassirou Diomaye Faye, has revived a contentious debate over monetary sovereignty in West Africa by advocating for the disposal of the CFA Franc, a currency tied to France since the colonial era, in favour of the proposed Eco, a common currency for the Economic Community of West African States (ECOWAS). Faye’s advocacy illustrates a growing regional push against colonial legacies and faces both fervent support and formidable challenges.
Initially created in 1945 as the “Colonies Françaises d’Afrique” currency, the CFA Franc remains a potent symbol of France’s enduring economic influence in Africa. Used by 14 countries across West and Central Africa, the currency requires member-states to deposit 50% of their foreign exchange reserves in the Bank of France, while its value is pegged to the Euro.
Supporters of the CFA monetary system argue that it ensures monetary stability, but critics have denounced it as a relic of colonialism. As articulated by the Africa at LSE online publication (2019), “France holds a de facto veto on the boards of the two central banks within the CFA franc zone,” undermining local control over monetary policy.
President Faye’s call to abandon the CFA Franc follows a 2019 ECOWAS agreement to adopt the Eco, intended to replace the CFA Franc and foster regional economic integration. However, progress has stalled due to divergent political priorities and economic disparities among member states. The Eco’s launch, initially slated for 2020, has been postponed to 2027, reflecting the complexity of unifying 15 nations with varying fiscal policies and economic structures.
Faye’s proposal has struck a chord in Senegal and beyond. France TV Info in 2024 noted that abandoning the CFA Franc is “an extremely popular measure in Senegal and other West African CFA users”. The currency is widely viewed as a “symbol of French tutelage,” and Faye’s stance aligns with a growing anti-colonial sentiment across the Sahel, demonstrated by Burkina Faso, Mali, and Niger exiting the CFA Franc zone in recent years.
Economically, the Eco could reduce transaction costs and boost intra-regional trade, which currently constitutes a meagre 10 to 15% of ECOWAS commerce. A unified currency might also enhance the bloc’s global bargaining power. An article published by Currency Transfer in 2023 optimistically states that “The Eco will break dependence on France and allow ECOWAS nations to operate independently,” citing the 2019 reform that ended the reserve deposit requirement in Paris, though the Euro peg remained.
Despite this momentum, significant hurdles remain. A study by the web-based bibliographic database, ScienceDirect, warns that ECOWAS members suffer from “asymmetric shocks” and insufficient “business cycle synchronisation,” critical flaws for a successful monetary union. Another article published in 2022 in Economic Systems examined the synchronisation of growth cycles across African Regional Economic Communities, including ECOWAS, and concluded that business cycle synchronisation remains heterogeneous, posing challenges for a unified monetary policy.
For instance, Nigeria, which contributes 70% of ECOWAS GDP, faces different economic priorities than smaller states like Senegal. Nigeria’s introduction of the eNaira, a central bank digital currency, signals its ambivalence toward the Eco, fearing loss of dominance.
Political fragmentation further complicates matters. While Faye champions the Eco, leaders like Côte d’Ivoire’s Alassane Ouattara have historically defended the CFA Franc, dismissing criticism and often framing the CFA Franc as a technical issue best understood by experts. For example, in February 2019, after meeting French President Emmanuel Macron in Paris, Ouattara told the press, “I don’t understand this false debate,” describing the CFA Franc as “solid, well-managed, and appreciated,” and urging that such discussions should end
Faye’s push for the Eco could yield divergent results, shaping the region’s economic future, economic analysts say. A successful launch, driven by strong regional cooperation, they predict, might solidify the Eco as a transformative achievement, boosting trade, stabilising currencies, and easing debt pressures.
Faye has pledged to pursue alternative pathways to sovereignty, potentially a national currency, if the Eco fails, though Guinea’s 1960 exit from the CFA Franc serves as a cautionary tale of the risks of isolation.
A poorly executed transition, on the other hand, could spark inflation or capital flight, worsening economic instability. The CFA Franc’s record of low inflation, between 2 and 3% compared to Africa’s 15% average, remains a key advantage. Should the Eco stumble, public frustration could erode Faye’s support, with pundits warning of a political backlash.
Some financial experts say a middle path, which emphasises gradual reforms such as fiscal convergence or ECOWAS-wide tax harmonisation, might offer a pragmatic compromise. Yet, others warn that incrementalism carries its own risks, potentially disappointing citizens eager for swift change. The stakes are high, with each path carrying profound implications for sovereignty and stability.
Faye’s push is part of a groundbreaking shift in West Africa, where young leaders are rejecting neo-colonial structures. Burkina Faso’s Traoré, Mali’s Assimi Goïta, and Niger’s Abdourahamane Tchiani have all defied France, leveraging populist rhetoric and military alliances. Senegal’sssuccess in pushing through with this reform could embolden others, but failure might entrench the status quo.
President Faye’s proposal illustrates the tension between post-colonial aspirations and economic pragmatism. While the Eco’s success hinges on overcoming technical and political barriers, the yearning for sovereignty is undeniable. The world watches to see if ECOWAS can transform rhetoric into reality, and if Faye can navigate the precarious balance.
