Weeks after withdrawing from the Economic Community of West African States (ECOWAS) and a few months after the creation of the Alliance of Sahel States (AES), The military leaders of Mali, Burkina Faso and Niger have hinted at the possibility of the creation of a common currency that would end their use of the CFA franc.
This development is coming against the backdrop of reports that the three states had no desire of leaving the West African Economic and Monetary Union (UEMOA) group and would rather maintain the CFA franc as their national currencies.
No further details on the timeframe of a possible withdrawal from the currency union was mentioned by the leaders. However, analysts say such action would take some time to materialise.
During an exclusive interview on Monday February 12, in Niamey on National Television, the Nigerièn Head of State, Brigadier General Abdourahamane Tiani reassured that there would be a single currency for the AES, which they will decide at the appropriate time.
The Nigerièn Head of State stressed that currency is a sign of sovereignty, and that they are engaged in a process of recovering their total sovereignty. “We have said it, we must open the cupboard of the recent history of African States, take out all the files, dust them off, analyse them, evaluate them and decide for the interest of our people,” he said.
Tiani also insisted that there is no longer “any question of our States being France’s cash cow.” He noted that “France has robbed us for more than 107 years, France must pay in cash the debts of 65 years of systematic pillaging of our resources, we will find a timetable so that we can be even with the France.”
He explained that “The currency is a step out of this colonisation, the AES States have experts and at the appropriate time, we will decide and we are going to decide insha’Allah.”
Some analysts say a sovereign Sahelian currency will be a welcome break away from the patronising relationship that Francophone Africa has with Paris. Currently, they say, France dictates the economic policies of 14 African countries, including requiring a French citizen to sit on the board of each of the three central banks that govern various forms of the CFA franc. Despite holding a wealth of resources, these countries are among the poorest in the world.
Following the 26 July coup that toppled the democratically elected Mohamed Bazoum, the International Monetary Fund projected 11 per cent growth in 2024 for Niger. And, it is not alone. Burkina Faso and Mali are also expected to grow despite the economic and political isolation of the three states.
Once put into circulation, the new currency will replace the CFA franc, which is today common to the eight countries of the UEMOA.
There have, however, been reports that Mali has not explicitly considered pulling out from UEMOA. On the contrary, certain reactions (after the announcement of the withdrawal of ECOWAS on January 28, 2024) within the government have led observers to believe that this option is not yet being considered. It has not been officially ruled out either.
Last November, experts, as well as the Ministers of Economy and Finance of the AES, had notably recommended the creation of a stabilisation fund and an investment bank.
