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African countries that still pay 'colonial tax' to former colonisers

France defends the arrangments as compensation for infrastructure and administrative costs incurred during colonial rule, however, critics label it an exploitative practice that undermines true independence and economic growth in Africa.
African countries that still pay 'colonial tax' to former colonisers
African countries that still pay 'colonial tax' to former colonisers

The practice of colonial tax continues to affect several African nations, primarily former French colonies, despite the end of formal colonial rule decades ago.

This system, often referred to as a "colonial tax," involves these countries sending a significant portion of their income back to France, a legacy of agreements made at the time of independence.

The colonial tax system allows France to claim up to 85% of the annual earnings from these countries. 

The mechanism is structured such that these nations must deposit their foreign currency reserves into France’s central bank. 

Franco-phone Africa

When they need access to these funds, they can only withdraw up to 20% at a time and must often request loans for additional amounts. 

This arrangement has been defended by France as compensation for infrastructure and administrative costs incurred during colonial rule; however, critics label it an exploitative practice that undermines true independence and economic growth in Africa.

Political Influence

After granting independence, France sought to ensure that the new leaders aligned with its interests. 

Many African leaders were either educated in France or had strong ties to French political systems. This created a network of elites who were more inclined to prioritise French interests over national sovereignty. 

A man wears a French flag to show support for the French military intervention in Mali, in the capital, Bamako, Jan. 14, 2013.

Notably, France often intervened directly in political matters, supporting regimes that adhered to its policies and undermining those that sought greater autonomy. 

For instance, when Guinea attempted to break away from French influence by establishing its own currency, France retaliated with economic sabotage and destabilisation efforts, sending a clear warning to other nations about the consequences of defying French interests.

Economic Control

France's economic dominance is primarily exercised through the CFA franc, a currency used by many former colonies that is pegged to the euro. 

This arrangement ensures that these countries must deposit a significant portion of their foreign reserves in France, limiting their financial independence and perpetuating a cycle of economic dependency. 

Critics argue that this monetary system is inherently exploitative, as it keeps African economies tethered to French financial interests and hinders their ability to develop robust local economies.

Military Presence

France has maintained a military presence in several African nations under the guise of security cooperation agreements. 

These agreements allow for French troops to be stationed in countries like Chad and Gabon, ostensibly for peacekeeping and counter-terrorism efforts. 

However, this military presence often serves as a means for France to intervene in local conflicts and support friendly regimes, reinforcing its influence while undermining the sovereignty of these nations. 

Emmanuel Jean-Michel Frédéric Macron

Cultural Ties

Culturally, France has exerted influence through language and education. 

The promotion of the French language and cultural ties via organisations like Francophonie ensures continued dependency on French cultural norms and practices. 

Educational systems in many African countries still reflect colonial legacies, further entrenching France's soft power in the region. 

Chad

Benin

Côte d’Ivoire

Guinea

Mali

Niger

Senegal

Togo

Cameroon

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