While the economic furor in West Africa continues to unfurl, Burkina Faso’s President, Roch Marc Christian Kabore, has raised a significant query over his country’s affiliation with the West African Economic and Monetary Union (WAEMU). His consideration arises on the heels of neighboring Mali’s recent announcement of its imminent departure from the Union.
According to President Kabore, the decision concerning Burkina Faso’s membership in the WAEMU hinges on the Union’s resolution over the controversy of adopting a common currency with the Economic Community of West African States (ECOWAS). He underlined that his country’s potential separation from the Union isn’t planned to coincide with Mali’s exit.
The WAEMU is a regional bloc consisting of eight West African nations that employ the CFA franc as their official currency. This currency is pegged to the euro, a structure that has elicited a protracted conversation across the region. Detractors of the currency argue that it furnishes France, as the guarantor of the currency, with unsolicited dominance over the economies of the user nations.
The debate over the CFA franc has been attracting significant attention in recent times, particularly with French President Emmanuel Macron’s controversial suggestion in December 2019 for a new “eco” currency to replace the CFA franc.
Burkina Faso, known for its prime position as a leading cotton producer on the continent and its burgeoning mining sector, has to carefully consider the economic implications of severing ties with the WAEMU, especially in the prevailing volatile global financial context.
To this effect, President Kabore has made it clear that Burkina Faso’s withdrawal is currently being contemplated as a potential move, underscoring that the decision is largely dependent on the contentious issue of adopting a common currency with ECOWAS.
The West African financial landscape is set to witness significant transformations, particularly following Mali and potentially Burkina Faso’s reconsideration of their affiliations with WAEMU. This move may trigger a thorough reevaluation of the Union’s policies and the ostensible French economic influence.
