Is De-dollarization Possible for Africa? Or Are We Too Afraid to Name the Real Problem?
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By Thuita Gatero | Managing Editor, Africa Digest News
Africa is not poor. Let’s start there. The continent is rich in resources, rich in culture, rich in youth, and arguably, rich in untapped potential. But when it comes to currency power, Africa is bankrupt. Not in reserves, but in sovereignty.
This is not a new conversation. “De-dollarization” has been echoing across summits, panels, and protest placards. But while Latin America experiments, while Russia and China act, and while BRICS debates alternatives, Africa hesitates.
Why?
Because de-dollarization requires more than policy papers. It requires tenacity. It requires confrontation. And most of all, it requires the courage to say something few are willing to say out loud:
Africa is still economically colonized, and we are complicit.
Who Controls the Price of African Wealth?
Let’s talk about coffee.
Ethiopia is the birthplace of coffee. Uganda and Kenya produce some of the finest Arabica beans in the world. But guess where the price of that coffee is set?
Not in Addis Ababa. Not in Nairobi. Not even in Johannesburg. The price is set in London, at the London Terminal Market (LTM).
Let that sink in.
A continent that grows what the world drinks still waits for London to decide its worth.
And it’s not just coffee. From cocoa to copper, gold to oil, Africa exports its value and imports its price. How does a continent that feeds global industries remain at the bottom of the value chain?
It’s because we don’t just trade in dollars, we surrender to them.
The Illusion of Currency Sovereignty
Even the currencies we print bear colonial fingerprints.
The CFA franc, used by 14 African countries, is pegged to the euro. But for decades, it was pegged to the French franc.
France still guarantees its convertibility and in exchange, holds reserves for these nations in its central bank. That’s not monetary independence. That’s economic house arrest.
Meanwhile, dollar reserves dominate our central banks. Dollar-denominated loans dominate our debt. Dollar-based systems dominate our trade.
And every time the U.S. raises interest rates, African currencies tremble like leaves in a storm.
So Is De-dollarization Possible?
Technically, yes.
Practically, not until we stop dodging the real conversation.
Because here’s the truth: de-dollarization is not just about currency swaps or regional settlements. It’s about power. Political will. Institutional trust. And unity, something Africa talks about often but rarely acts on.
PAPSS (Pan-African Payment and Settlement System) is a step in the right direction. It allows African countries to trade in local currencies. But adoption is sluggish. Only a handful of central banks and commercial players are fully onboard. Meanwhile, Visa, Mastercard, and Swift still dominate cross-border payments.
The Price of Playing Nice
Africa’s leaders often attend global forums with well-crafted talking points. We speak of inclusion, of reform, of partnerships.
But there’s a Swahili proverb: “Asiyefunzwa na mamaye hufunzwa na ulimwengu.”
“He who is not taught by his mother will be taught by the world.”
Africa keeps waiting for the world to teach it fairness. But fairness is not taught. It is demanded.
Our hesitance to de-dollarize is not about feasibility. It’s about fear, fear of isolation, of retaliation, of economic turbulence. And yes, those are valid fears. But what’s the alternative? Eternal dependence?
If we continue down this road, we are not developing, we are just managing our poverty better.
What Must Change?
- Set our own prices.
African commodity exchanges must become price makers, not price takers. That means investing in infrastructure, transparency, and regional trust. Lagos, Nairobi, and Accra should compete with London and Geneva, not bow to them. - Back our currencies with real value.
Resource-backed currency frameworks are not fantasy. They are a return to logic. If Africa controls 30% of the world’s mineral wealth, our currencies should reflect that. - Unify payments and policies.
Fragmented systems are fertile ground for exploitation. PAPSS, AfCFTA, and regional banks must be aligned, not just in vision but in daily execution. - Educate our people.
Economic reform without mass literacy is elitist. The public must understand why local currencies matter. Why local control matters. Why de-dollarization is not anti-West, it’s pro-Africa.
Is Africa Ready?
De-dollarization is not a silver bullet. It is not easy. It will come with pain, resistance, and growing pains. But it is necessary.
Because economic sovereignty is the foundation of political freedom. And until Africa stops renting its future from global currencies, it will never own its tomorrow.
So, is de-dollarization possible?
Yes. But only if Africa stops waiting for permission and starts demanding respect.
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