As the completion of the CFA Franc reform approaches, documents from the French public treasury show flaws. France has acquired several advantages with regard to the guarantee agreement with the BCEAO.
The reform of the CFA Franc, supposedly endangered, will ultimately not go as expected. After an agreement in May 2020, France had imposed itself as a “guarantor” of the gradual transition to a West African currency, the Eco. However, because of this position, the country of Emmanuel Macron would overlook West African financial emancipation.
First, the process, since December 2019, has been surrounded by great discretion. The first agreement between Macron and his Ivorian counterpart Ouattara was not immediately executive. In 2019, the mere mention of the “end of the CFA Franc” was unprecedented. Next, the guarantee agreement, signed in December 2020 was to establish a restricted role for France. In addition, France would proceed to transfer 5 billion euros at the Central Bank of West African States (BCEAO).
Then, despite the slowness of the procedures, nothing could yet be blamed on the stakeholders. The circle was restricted to BCEAO officials and heads of state. But eventually, the warranty agreement document was released. Now that this is the case, there are flagrant deceptions. Some measures would contrast sharply with the righteous speeches of Emmanuel Macron.
During his visit to #Abidjan from 29 to 30 April, #France's @brunolemair to reassured Côte d'Ivoire's President @AOuattara_PRCI that the CFA franc reform agreements approved in December 2019 would be implemented in their entirety, reports @BMieu.https://t.co/8wwZTvLPYK
- The Africa Report (@TheAfricaReport) May 5, 2021
A state racket or the looting of a continent?
At first glance, an article of the convention specifies that France must be informed of financial transactions “regularly”. This concerns trade between the UEMOA zone and the outside world. Already, this provision gives France the right to intervene during foreign monetary injections. So France would not guarantee transactions automatically, only when the exchanges arrange its interests.
In this case, the guarantee would not come into force if the African countries concerned lacked foreign exchange. The BCEAO will then have to resort to its own funds from the International Monetary Fund (IMF). This would also place the IMF as decision maker of the value of the CFA Franc or the Eco, in the future. Then, if the UEMOA countries decide to accept a non-French transfer of funds, they will have to pay France! In short, France would extort money from the African countries concerned if it does not earn money directly. Then, even if France made use of its guarantee, the deposit of funds would not be 50%. According to article 7 of the convention, the UEMOA countries will have to deposit 80% of the currency received.
Prior to the 2020 agreement, that last particular requirement was 50%. And even if France received remuneration for deposits of funds, it did not amount to an additional 30%. According to Ecofin journalist Idriss Linge, the WAEMU would gain absolutely nothing from the deal. The CFA Franc is a vestige of French neocolonialism, otherwise called Françafrique. The new reform did not include parliaments and African intellectuals and economists. Now that the content of the December 10, 2020 convention is official, some things are becoming clearer. In this case, the content of the agreement explains the caution of the BCEAO.
Of course this is controversial - but please read the whole article before you judge https://t.co/jHO7wy9yHE
- Michael Jordaan (@MichaelJordaan) May 5, 2021
Specialists and hotheads
Also, the lack of declarations on the African side had fueled the uncertainties. The process is progressing all the same, despite the protests of the protesters of the CFA Franc. From May 26, a series of discussions will be held on the subject. Under the aegis of the Togolese representative within UEMOA, Kako Nubukpo, “intellectuals” will be able to present their point of view.
However, the names mentioned would make anyone doubt the progress of these negotiations. Some, like the Beninese Lionel Zinsou, or the Cape Verdean Cristina Duarte, are specialists in the field. Both have served as finance ministers in their respective countries. Their position against the misdeeds of the CFA Franc is clear. Although with concrete measures already undertaken, taking a position would not be enough.
Precisely, the presence of other representatives worries. In particular, the Guinean Carlos Lopes could be considered as a pure product of international financial bodies. In addition, his opinions vis-à-vis the CFA Franc are blurred. As much as he claims that "Europe should treat Africa as an adult". As much as it brings an abstract ecological agenda to the fore whenever African development is discussed. At last, the possible presence of Ousmane Sonko would be the most curious of all. The Senegalese politician is still subject of legal proceedings. Indeed, the deputy is accused of rape in Senegal. Judicial review against him is a government measure avoid more violence in the streets. Then, Sonko is clearly not an expert. Apart from criticism, he had never proposed a concrete solution.
So, between specialists and hotheads, it is uncertain whether Africa would escape this new tutelage. A guardianship whose circle could well widen, CQFD. However, the only parties that will not be part of the decision are the African people.