A plan to launch a new currency to replace the CFA franc used by several countries in West Africa may not happen for at least five years. Ivory Coast President Alassane Ouattara has said the coronavirus pandemic has derailed the project to introduce the eco currency this year. Last December, the eight countries which use the CFA franc – all former French colonies plus Guinea-Bissau – said they would reduce their economic ties to France, while there has been a parallel move to create a single currency for the whole of West Africa. But the ambitious plan has been torpedoed by the economic fallout of the global Covid-19 pandemic. The International Money Fund has forecast sub-Saharan Africa’s economy will contract more than 3% this year. Nations in the bloc have agreed to work towards reducing their budget deficits to below 3% of GDP, a measure of the value of their economies. But according to the Ivorian president, that is unlikely to happen for three to five years. Other countries which do not use the CFA franc, like Nigeria and Ghana, are also interested in adopting the new regional currency. But Ghana does not want the eco pegged to the euro, like the CFA franc, and Nigeria wants the former French colonies to break all financial ties with Paris.
SOURCE: FURTHER AFRICA
More Stories
The Latest Sign of Progress in Ethiopia’s Peace Deal
Traditional Gender Norms are the Main Barrier to Ghanaian Women Pursuing Academic Careers
Tanzania is a Beautiful and Peaceful Country, but there is a Dark Side
Nigerian Official and Wife Found Guilty for Organ-trafficking Plot
Uganda Bill Makes Provisions for the Arrest and Imprisonment of LGBTQ People
Sex in a Mogadishu City
Algerian Authorities Dismantle an International Network of Migrant Smugglers to Europe
Blinken’s Trip is the Latest in a Series of Visits to Africa by US Government Figures
Film Tells the Story of a Tragedy Perpetrated in Africa by German Colonial Troops
The Top Ten Most Ethnically Diverse Countries are all African Countries
South Africa Still a Long Way Off in Building a National Culture of Human Rights
After Lawsuits and Demonstrations Led by Chagossian Women, Britain Paid Some Compensation through the Mauritian Government to the Exiled Chagos Population