There is something very unusual happening in Africa, and that is what Mali, Niger and Burkina Faso are doing. These are largely landlocked countries which posits that they have inherent geographical disadvantages in international trade. But since they disconnected from ECOWAS, pockets of uncommon visions have emerged.
For everything done, I am concerned about the plan for them to have a currency union with their own currency. As I write, the 3 countries remain members of the West African Economic and Monetary Union (Uemoa), a currency union, behind the CFA franc, which is issued by the Central Bank of West African States (BCEAO).
My secondary school Commerce teacher, Mr Udeagu Jr, explained that BCEAO does deposit foreign reserves in Banque de France and the French nation is the guarantor of the CFA franc. But today, the issue is that the trio wants to create their own currency. Good People – they have done many things including a rumoured turning down an IMF loan, but this new currency will not be an easy one.
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I have written extensively in the African Union working papers on the perils of currency union within heterogeneous economic structures. A supranational bank serving these three countries could be in real troubles, and that could trigger welfare losses in the countries. The relative economic stability they have right now must not be compromised with a haphazard pursuit of economic purity, which here, is absolute disconnection from France.
Personally, I am not a big fan of a single currency because it will not remove the rascality of spending politicians in Africa. And when you lose autonomy on the national central bank to use macroeconomic tools to deal with some economic challenges, many bad things could happen. So, instead of pursuing a single currency, the trio and other African nations must work to build trade infrastructures like roads, railways, seaports, etc.
My position is that building infrastructures and using tech to eliminate currency friction, across borders, should be prioritized.
Indeed, in Nigeria, we use the Naira but without the rail networks, the level of trade between Maiduguri and Aba has gone down. And the one between Ovim (my village in Abia State) and Enugu has collapsed. The old Ovim Railway Station served more than nine local governments, linking communities to opportunities. We continue to use Naira but with no railway system, trade has faded, destroying rural-urban linkages.
So, it goes beyond having the same currency. Jumia does not deliver packages to Ovim, even though Ovim uses the same currency as Lagos. The issue is this: the currency of commerce and the operating system of trade – supply chain – is limited in Nigeria. That is the currency we need to have in Africa and stop the illusion that because I can pay you with the same currency, all core problems will disappear.
Yes, the trio can develop their markets via infrastructure linkages and leave the currency alone, for now. The risk of a currency mess is huge.
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What we do with political leadership in this part of the world is that, rather than defining and validating a problem, we go ahead to create a phantom solution, and the solution will in turn create new problems. What data or analysis showed the three countries that their economic stagnation is tied to the colour of currency they use? Nigeria has a Naira, but it hasn’t improved our living standards.
A currency in itself has never made any nation wealthy, so if anyone thinks that structural and infrastructure problems are solved by creating a new currency, well, you will soon learn that the problem is elsewhere.
The things that actually bring profound changes are not always elegant or palatable, but it’s always those things with near zero impact in the grand scheme of things that often get people animated and excited.
Keep playing.
Let them try, it is better that they remove themselves from straggle hold of France. When they try and mistakes are made they’ll be corrected. African countries do not need the west to control their lives. Please explain to me why they should continue to CFA tie Euro. That’s is greatest to black man. We must destroy the spirit of slavery, let Africa and Africans be free
Very good, you have a vision.
This is the comment I was looking for. It seems the guys who have commented there have zero ideas on why France wants to remain the custodian of those countries currency. If you cannot have your own currency then you are a slave. France should be kicked out of Africa as soon as yesterday with her diabolical ideas.
GOD BLESS YOU ABUNDANCE, NO HARM IN TRIAL ,THOSE AGAINST ARE ARE AGENTS OF THE WESTERN IMOERIALIST WORLD EDUCATED & TRAINED & TO FURTHER DISCOURAGE ,DESTROY & AFRICAN NATION LIKE THIS IGBO – NIGERIAN WRITER WHO COULDN’T ACTUALIZED BIAFRA DREAM .
CONDEMNI
Thank you keep pushing African should get rid of the foreign mentality and from their unconfidential zone of course nothing can stop us develop when foreign power develop their selves through Africa why not we should without them Or develop without just a little weakness of course all those weaknesses don’t matter to Africa is all about hope and get started without letting it go keep holding on and we are here to accomplish the vision of those past great African like mammar gadafi, Thomas sangare, Nelson Mandela, nkuame nkrume, mugabi and so on that’s what the sahel state is here for and we will never ever give up tell the incompetent African to stay away if they are not ready but nothing can stop us from being better Africa as the great of the creator ?
Oguaju, from the writing perspective, you did a great job, however, regarding the content, I think, you’re missing the whole point. This is my topic of interest for more than a decade. My dissertation was devoted to it! I Gave talks in my country on it, wrote books, unpublished, on it, and more. I was actually born and raised in the CFA franc region. So when it comes to the trauma the currency has caused for decades and continue to cause to the people of the countries that use it, not to mention how the currency has evolved, I know what it is ; I really do. All the discussion about this currency comes down to one and only one thing: can a country like Niger or Benin republic achieve economic development with that currency? I don’t care what your definition of economic development is. For me it’s impossible from all perspective! I used to tell my students , if you live in a country that uses its former colonial power technology to print up the currency that is in your pocket, the game is over. And this is just a tiny part of the big story. Oguaju, If you disagree, let’s chat or have a conversation on the topic. I think the three countries, Niger, Burkina-Faso and Mali are set up on the right path.
Not taking a risk is risking it all. If it was better to use CFA, why do they have infrastructure problems today??? At least the trio have guts to remove themselves from the Western Spider Webs. They can back their currency with Gold like what Zimbabwe did! We human learn through mistakes, let this be trios first mistake.
I agree with you. As much as these countries are landlocked with ‘few infrastructures’ for national development does not mean they can not develop a single currency. The main aim of these countries is to break away from France CFA and stop paying economic tithes to France. After the security of the currency normalisation, trade and national infrastructure growth will follow.
GOD BLESS YOU ,
NATIONS OF AFRICA HAD BEEN ENSLAVED & DESTROY FOR CENTURIES ,YET THEY STILL REMAINS POOR ,OF WHAT BENEFITS SHOULD THEY CONTINUE GENERATIONAL SUFFERING UNDER THEIR HEARTLESS COLONIAL MASTERS THROUGH CORRUPT LEADERS & BETRAYERS.
E.G BACKWARD NIGERIA + CAMEROUN + GHANA +TOGO ,
Thank you all. Great submissions.
Have you ever wondered why they were created landlocked countries with foreign reserves banks in France?
It is called Neo colonialism, a strategy used by past colonial masters to continue manipulation and exploitation of their former colonies.
It’s a pity to see well exposed and educated Africans (like the writer of this article, politicians, religious and traditional leaders) still naive about world affairs
Nigeria is ruled by Educated illiterates.
Just look at the educational qualification of an average state governor or house of representative member, senator, honorable member, minister, commissioner, president, DG, perm sec, etc.
Some of them with fake or real foreign certificates and flamboyant working experience. What do we get in return “Bad governance”
My question for My Ndubuisi Ekekwe the acclaimed Phd holder and author of this article is; how much dollars abi euro did France paid you to promote their neo-con propaganda and work against your own people
Braking away from system that held them backward for years, France and all that relates to them is best move
You talk about the reality that Africa lays under for long , for me, would choose you to lead all African Nations with out calassifucation.
Thanks for your good moral and fare-sighted views for African problems.
I agree with you Ken. Infact they have managed to correctly identify the constraints to economic and commercial development and growth.
African political emancipation and development face numerous challenges. Some key obstacles include:
1. _Colonial legacy_: Persistent colonial-era boundaries, institutions, and mindsets hinder true independence.
2. _Corruption_: Widespread corruption undermines governance, economic growth, and trust in institutions.
3. _Ethnic and tribal divisions_: Deep-seated identity-based conflicts and divisions hinder national unity.
4. _Economic dependence_: Over-reliance on foreign aid, natural resources, and external markets limits economic sovereignty.
5. _Lack of strong institutions_: Weak or dysfunctional institutions, including judiciaries, electoral bodies, and parliaments, erode democratic foundations.
6. _Poor leadership_: Ineffective, authoritarian, or short-sighted leadership hinders progress.
7. _External interference_: Foreign powers’ interests and interventions often prioritize their own agendas over African nations’ needs.
Solutions to African development:
1. _Decolonization and self-determination_: Empower African nations to define their own paths, free from external influence.
2. _Institutional reforms_: Strengthen and democratize institutions, ensuring accountability, transparency, and inclusivity.
3. _Economic diversification and industrialization_: Foster local industries, innovation, and trade to reduce dependence on external factors.
4. _Education and capacity building_: Invest in human capital, skills development, and leadership training.
5. _Regional integration and cooperation_: Enhance collaboration, shared resources, and collective bargaining power through organizations like the African Union.
6. _Good governance and anti-corruption measures_: Implement robust anti-corruption frameworks, ensure free and fair elections, and promote civic engagement.
7. _African-led solutions and ownership_: Encourage homegrown initiatives, empowering local communities and leaders to drive development.
8. _Technology and innovation adoption_: Leverage technology to drive economic growth, improve governance, and enhance service delivery.
9. _International partnerships and cooperation_: Foster mutually beneficial partnerships, prioritizing African interests and agency.
10. _Long-term thinking and planning_: Encourage visionary leadership, prioritizing sustainable development over short-term gains.
By addressing these challenges and implementing these solutions, Africa can unlock its vast potential and achieve meaningful political emancipation and development.
Suspend your naysaying propensities for now, please. This is not the time to demonstrate dexterity with the use of the English language to subtract from to the will of the African people.
Let the leadership try a new experience even something foreign [as it were, thinking outside the box] to everyone as long as the people are free, there is no harm to women, children and the elderly…and, their economies are responding well to each other. This is solidarity and cooperation needed on the Continent of Africa! Lessons can be learnt from their mistakes and successes!!!
No one could have said it better than you did. I’ve read comments here and I would say that there are too many white people in black skins here. Ndubuisi is someone I’ve followed ardently for years on twitter. But this article of his, offs me.
African should be left alone to grow on it’s pace. We are different people from the white imperialists. I don’t want to believe that this is a sponsored article.
China broke away from these people, look at where they are today. South Korea, India etc. They are all doing well in their own pace.
All these sudden love for the Sahel region by the whites is just targeted at their resources.
For the last time, Africa should be left alone.. Let Africa manage its resources by herself. We are not some wildlife game reserve animals that are managed.
Cheers
We’re going around IMF-World bank- Banque of France to receive the financing to pay even the salaries of employees!
Enough is enough!
Thank you!
Malian-Liberian diaspora
Well said
In the quest to survive in an earthly kingdom, it should not be at all surprising that those animals who make “friends” with other unfamiliar animals with unreserved trust for their protection in the interest of survival end up becoming the other animals’ breakfast, lunch and, or dinner.
An investigation into this above phenomenon is not only politically critical but socially and economically reasonable to understand that which is missing and, or may have been missed all these years past in our generous calculations.
Otherwise we will continue to give credence to the inevitability of our mistakes consequential to our collective failures to move Africa forward.
Mind you, the caliber of people [not Angels nor Dwarfs whether imagined or real] in any country, make it whatever it is supposed to be!
You see the West have program the world in such way that,you Can’t win without them, drifting away from the franc is a laudable idea ,even it fails it’s still a plus, because failure is part of winning,these westerners are Soo evil that they won’t allow to progress,You see will pick our own Africans and flush with Cash to Destabilize these Countries, They will malign them in their western media create scene of killing their own people,these Evil Colonizers.
You conveniently gloss over the French relationship in these Sahalian countries never disappeared, even during their independence. These nation’s first action was to get rid of French diplomatic relationship. All three of these nation’s suffer tremendously from a lack of power, yet 40+ years of Pro France leadership hasn’t translated into a glut of Power plants being built. Moreover, the neocolonial agreement led to wholesale theft of the African funds through malignant banking terms. You cavalierly think it’s this heinous, venomous pattern that is beneficial to these States. Is this the results and destiny you choose for these nation’s.
I am optimistic about the CONCEPT of inclusivity based on globalism, Where NATIONS could be transformed into MODELS for prosperity and stability in the overall interest of it6 CITIZENRY,
I am not a subcriber to AUTHORITARIAN REGIMES AND RULERSHIPS, which in this dispensation is not NEW to African Countries, History is my point of REFERENCE in a nutshell.
All Forceful MILITARY TAKE OVER and INTERVENTIONS in AFRICA ends up in much regrettable FAILURES and desertrous with SORROW, TEARS AND BLOOD inflicting of the CITIZENRY they perpurtedly took power to rescue so what is currently happening in the SAHEL STATES is an old story.
Common sense has to remind us that GOVERNANCE is the corridor of SINCERE TECHNOCRATS than uninvited scam for the. MILITARY of any SOVEREIGN STATE.
The only way to GOVERNANCE must be through the BALLOT BOX.
I REST MY CASE
I am sure you are not serious, Democracy in Africa is worse than any system of government that history has taught us,I am from Nigeria, I am not a gen-z,so I know what I am talking about.just imagine what the military did in my country in over 3 decades, today can we compare the present regime in terms of sincerity of to the people being govern?the answer is a NO.if there is a group sincere military men any where in Africa, let them take over and fix Africa, because civilians are too corrupt.
I am from a country called Cameroon, just a neighbor of Nigeria. I think ? it’s in the best interest of those 3 countries to solve their business by themselves as nobody will help them from Nigeria. Nigeria a neighbouring country only wanted to intervene militarily to defend it western masters. Nigeria only wanted to obtain the free passage of its oil and gas pipeline through Niger Republic soil. And betrayed it’s neighbors because of dollars ?. Nigeria should first help your own economy before going to other countries around your borders. The oil refinery of your billionaire is in trouble, and the president has his airplane ??? in Canada and Europe confiscated. And Nigeria is unavailable to deal with poverty in Nigeria, despite having deposits of huge quantities of oil and gas. The Nigerian economy is still heavily dependent on oil ever since it discovered it , and has never improved the country currency against the US dollar or pound sterling since it’s creation. Corruption is endemic, criminality and terrorists are striving and living with impunity all over the country. Those 3 countries have natural resources that will help them develop faster than what you think, if they have good leadership politicians. Russia and China will help them if they fall short of investment. If they rejected a loan from the IMF just as you mentioned, it’s because sometimes those loans aren’t worth anything sometimes, and those loans maintain them on the same poor standard of living that they want to get out of. When those 3 countries needed Nigeria for help, Nigeria turned it’s back on them and instead wanted to fight a war against them with the help of the west. Black man is very happy seeing his brother dying and not helping, instead helping his enemies to totally finish his brother. White European people are not like that. And I totally understand and agree that military undemocratic government is not acceptable, but corrupt democratic government administration is totally worse than a military government administration that is doing the correct job.
I totally agree with you,a group sincere soldiers is better than the clueless old pot belly corrupt Africa so called democrat stealing everything in site,and Nigeria is a pathetic case.
There is nothing worth alarming if the 3 countries decide to adopt new policies. What is needed is careful analysis of I issues. before taking decision that serve as lasting solution. As for analysts critical and objective observationis required before giving a personal view
That is great, Mr Hendry from Cameron . Let us pray and protect the three leaders of the sahel region both life and their tremendous and strategic economy development. They can be there provided they can function and no need to change them . A dysfunctional democratic governance is useless today in Africa. We want what Traore and his co are doing in the sahel. Their governance has an element of nationalism. Beware, we see that for now they are selfless and therefore we pray for them not to derail from that patriotic ideology. Thanks.
Great countries often back Thier currencies with viable economic products. The British back Thier currencies with gold. The US back Thiers with crude oil. For every crude oil sold by Nigeria, the US dollars gain strength. This is why as Africans , we must be aggressive in fighting against Neo-colonialism.
For how long shall we fear taking risk for the sake of our continent. I support the three countries who have decided to severe their currency relationship with France. The west Africa Cefa that has being under the yoke of France for years, what development has it brought?
Africans, Beware of stereotypes. Beware of those who have been brainwashed with western education. Beware of self serving scholars who write based on narrow views, influenced by the econometrics of the west.
Without full control of the currency, infrastructure cannot be built. What we should guard against to grow in Africa are: Brainwashing by the west and corruption by Africa Leaders, with this we shall build the Africa of our dreams…
Dr Oteheri Brain Otejiri, proponent of PRODUCTIVE ENGAGEMENTS writes from Nigeria
I think this is a starting point for africa countries
like Mali BF and Niger to build up thier economy as an example to others
This process will be hard but it can work if they strengthen thier international trade…..with the minerals they have in ground Gold diamond etc…..as the international world cannot live without Africa resources
What we call democrat in Africa has no meaning in real sense because what us describe as democracy by definition is totally different from what is being practice today in Africa compared to what is practice abroad.why is it that white imperialist are in cahoot with these African leaders in destroying the continent, what is their end game,to profit and the continent remains impoverished forever?NO,let them fake the bull by the horn and fix their countries, Nigeria is still sleeping, by the time they wake up,it will be different song they will hearing.
With unified currency, they will achieve more economic independence.
Then building trans-national infrastructures becomes easier.
And without a unified currency, the three nations are only united politically, but less so economically.
It’s a step ahead, and no matter how rough the road is, it’s a journey they must take.
Confederacy is the goal. What’s wrong with having a single currency as part of the pillars? Some pains will come but that’s the stuff sacrifice is made of. I think your scepticism is wrong.
Oguaju, from the writing perspective, you did a great job, however, regarding the content, I think, you’re missing the whole point. This is my topic of interest for more than a decade. My dissertation was devoted to it! I Gave talks in my country on it, wrote books, unpublished, on it, and more. I was actually born and raised in the CFA franc region. So when it comes to the trauma the currency has caused for decades and continue to cause to the people of the countries that use it, not to mention how the currency has evolved, I know what it is ; I really do. All the discussion about this currency comes down to one and only one thing: can a country like Niger or Benin republic achieve economic development with that currency? I don’t care what your definition of economic development is. For me it’s impossible from all perspective! I used to tell my students , if you live in a country that uses its former colonial power technology to print up the currency that is in your pocket, the game is over. And this is just a tiny part of the big story. Oguaju, If you disagree, let’s chat or have a conversation on the topic. I think the three countries, Niger, Burkina-Faso and Mali are set up on the right path.
What is wrong with having single currency, as part pillars? I congratulate them for theirs plan . Africans should learn to be independent, then depending on others