No African country could estimate the effect this had on 14 different countries. French involvement in these economies is in finance and commodity trading, alongside ports, telecoms and infrastructure. Posted on Thursday, 21 November 2019 08:33. The critical side views the French colonial tax as a form of neo-colonialism. Then there is the small matter of increased exposure to Nigeria’s economy and sphere of influence. Donation amount $100 $250 $500 Donate Become a Member Members enjoy exclusive benefits and access. Sudan will be in the international spotlight on 17 May at a high-level conference in Paris hosted by President Emmanuel Macron in support of ... its fledgling democratic transition. And what’s more worrying is that French as of yet flourishes and To some, this is a beneficial arrangement that ensures that such countries are shielded from the devastating impact of price inflation that sometimes happens in weak African economies that issue their own currency. French colonial authorities responded by brandishing the virtues of corporatism and this re-organized but did not curtail the influence of economic elites on the making of tax policies. With hard-hitting investigations, innovative analysis and deep dives into countries and sectors, The Africa Report delivers the insight you need. France - France - Tax reform: In 1749–51 Jean-Baptiste de Machault d’Arnouville, then comptroller general of finances, tried to deal with the debts resulting from the just-concluded War of the Austrian Succession by proposing a partial reform of the tax system, his particular concern being to restrict the financial immunities of the church. Currently, Nigeria alone makes up a little over 25% of West Africa’s total annual economic output. Colonial Tax In Billions Africans continue to starve while their resources go to France As of January 2014, 14 African countries are obliged by France, through a colonial pact, to put 85% of their foreign reserve into France’s Central Bank under French Minister of Finance’s control. In Central Africa, the CFA Franc stands for Coopération financière en Afrique centrale (Financial Cooperation in Central Africa) while CFA Franc in West Africa stands for Communauté Financière Africaine (African Financial Community). Former colonies have to send a reserve report to France. The use of the CFA franc is highly controversial, with some saying it comes with a "French colonial tax". Until 2014, a French company imported the uranium free of tax. It is no coincidence that Patrice Talon’s pronouncement comes at a time when he is facing severe pressure from the Beninese business lobby as a result of Nigeria’s land border closure. These outrageous actions were all because Guinea wanted independence. The eight members of the CFA Franc zone will adopt the new currency, Eco, on July 1, 2020. Judging by the responses to his pronouncement, he calculated correctly. By replacing the CFA Franc with their own currency, the eight nations will finally reduce the influence France has over them. France did this to spare its colonies from experiencing strong devaluation. For one thing, the country’s ethnic and racial demographics have shifted significantly. The French newspaper Le Monde published a fact check of Koutonin’s claims in 2017. Those who obey are supported. Keeping 50 percent of their foreign reserves in the French Treasury. Colonial Tax in the Billions As of January 2014, 14 african countries are obliged by France, through a colonial pact, to put 85% of their foreign reserve into France’s central bank under French minister of Finance control. De nombreux articles en ligne relaient l’existence d’un « impôt colonial » exigé par la France sur les réserves financières de 14 pays africains. This is because the countries do not have control over their own currency and France is seemingly holding them hostage. The CFA Franc then offers itself as the perfect political punching bag. For instance, France has representatives sitting on the CFA Franc boards of both unions. To 14 other newly independent French colonies however, the message was not that of a mere divorce. If adequate infrastructure existed to support this mooted migration away from the CFA however, it is very possible. Right now for example, the exact rules governing the existence of the eco – the proposed name for the West African Monetary Zone’s currency – do not exist. Is the idea to get rid of the perceived oppressive colonial weight of France only to end up subject to the demonstrably oppressive weight of an erratic, unstable and often unfriendly neighbour? France has the right to deploy its military in the African countries. General Stephen Townsend, the top commander for US forces in Africa, AFRICOM, thought it would be a good idea to re-surface the old trope that ... China is looking to build a new military outpost in Africa, this time on the West Coast. The colonial tax has attracted both support and criticism. efficiency: they are not only able to tax, they are also able to use public funds efficiently (Dincecco 2015, Besley and Persson 2011). While the 14 countries in the two monetary unions are taking part in the pact voluntarily, the lack of control has made a fraction of them look for a way out. This category only includes cookies that ensures basic functionalities and security features of the website. So far, the worst populist instincts of the leaders in some of these jurisdictions have been tempered by France. Examining the effects of pegging the CFA to the Franc then the Euro, the European Union stated in 2008 that there were “favourable effects in the region in terms of macroeconomic stability.”. Getting off the euro peg and diving fully into the proposed West African currency comes with its own significant risks. To provide comparative evidence on the states of the second French colonial … The writer drew attention to the bad influence of French on the African continent and how they are still subjected to pay colonial tax for the benefits of slavery. Unable to let its colonies go, France continues to exploit African countries with unfair obligations, one of which has raised a raging debate over the years. She believes that Talon’s announcement is little more than political grandstanding with no real intention of taking any dramatic action. We'll assume you're ok with this, but you can opt-out if you wish. its fledgling democratic transition. Ex-colonies cannot enter into military alliances with other countries without approval from France. The CFA is a colonial-era currency that is still used in several former French colonies in Africa. Predictably, the announcement sparked fist-pumping around the continent, presumably because it heralds the beginning of the end of a perceived exploitative, neocolonial relationship. Its currency sometimes swings wildly, losing more value in a single week than the euro-pegged CFA loses in decades. In 2017, French President Emmanuel Macron apologized for some aspects of France’s colonial past. The “French Colonial Tax”: A misleading heuristic for understanding Françafrique. It is mandatory to procure user consent prior to running these cookies on your website. It is convenient because it is a silent, almost abstract target that never talks back or imposes sanctions. ISSOUF SANOGO/AFP/AFP/Getty Images However, the European nation has benefited greatly from this pact because the African countries contribute $500 billion to its treasury every year. This arrangement is why critics say that the 14 countries are paying a colonial tax. DON'T MISS : Talking Africa Podcast – Nigeria’s Obiageli Ezekwesili: ‘Get interested by politics, or be ruled by idiots. Like the CFA Franc, the Euro and the French Treasury will back the Eco. Forget France: Nigeria is the Real Game in Town. These accords tied the former colonies to the Franc, the French educational system, and its military and commercial preferences. This important moment is intended to signal Sudan’s reintegration into the international community, following its removal from the US list of State Sponsors of Terrorism (SST) in 2020. By Mawuna Remarque KOUTONIN* Did you know many African countries continue to pay colonial tax to France since their independence till today! Décryptage. The reality is – what will the currency be based on? Paying for the infrastructure France built during colonisation. It was excessive because Get full access to The Africa Report on all your devices. Countries have to make French the official language and the education language. Out of these inauspicious origins came the CFA Franc, a twin set of French-backed currencies used by eight West African countries and six Central African countries. Below are the 11 main components of the Colonisation continuation pact since 1950s: #1. In fact, France is a remarkably different country now to what it was in the mid-20th century.