DECADES after independence, the legacy of colonialism continues to burden many African countries. Through a controversial system of colonial taxes, France collects billions annually from its former colonies, maintaining a grip on their economies.
What is the colonial tax?
The colonial tax dates back to agreements forged during the independence era. Under this arrangement, France takes up to 85 percent of the annual income of its former colonies, purportedly as reimbursement for infrastructure built during colonial rule.
This system forces countries to deposit their earnings into France’s central bank. From these deposits, they can only access 20 percent of their funds, and any additional withdrawal must be approved by France. Critics argue this system cripples financial independence and economic growth.
Impact on African nations
Countries paying the colonial tax face chronic financial challenges, often borrowing back their own funds to finance essential projects. Attempts to resist this system have historically led to political instability, including coups.
Here’s how the colonial tax affects ten nations:
- Benin
Once called Dahomey, Benin sends large sums to France to cover colonial-era costs. Critics argue these payments divert funds that could build schools, hospitals, and roads.
- Burkina Faso
Burkina Faso, part of the CFA franc currency system controlled by France, deposits significant reserves in the French central bank, limiting its ability to invest locally.
- Côte d’Ivoire
Despite being one of Africa’s strongest economies, Côte d’Ivoire remains tied to France through the CFA franc system and colonial taxes, which many believe stifle its financial independence.
- Guinea
Guinea rejected colonial agreements in 1958, prompting France to withdraw resources and destroy infrastructure. While this decision granted political autonomy, Guinea continues to grapple with the economic repercussions of the colonial system.
- Mali
As one of the poorest nations in West Africa, Mali struggles under the CFA franc system and colonial tax payments, which deprive it of funds needed for development.
- Niger
Although rich in uranium, a vital resource for France’s nuclear power plants, Niger remains impoverished, with much of its wealth flowing to France under the colonial tax system.
- Senegal
Senegal, often praised for its political stability, is financially constrained by colonial tax obligations and dependence on the CFA franc.
- Togo
Togo, a resource-rich nation, also participates in the CFA franc system, further limiting its economic independence.
- Cameroon
With a dual colonial history under France and Britain, Cameroon continues to pay colonial taxes, deepening its reliance on France and leaving fewer resources for national development.
- Chad
Despite its abundant oil reserves, Chad remains one of the world’s poorest nations. Its wealth is siphoned off through colonial taxes and the CFA franc system.
Calls for reform
Critics argue that the colonial tax system is outdated and exploitative. Many demand that France relinquish control over African economies, allowing these nations to achieve true financial independence.
Despite these calls, France defends the system, claiming it ensures stability and compensates for past investments. However, as African nations grow increasingly vocal, the pressure to dismantle this economic model mounts.
The lingering effects of the colonial tax are a stark reminder that, for many African nations, true independence remains an elusive goal.
