Economy of Guinea-Bissau

Guinea-Bissau is among the world's least developed nations and one of the 10 poorest countries in the world, and depends mainly on agriculture and fishing. Cashew crops have increased remarkably in recent years, and the country now ranks sixth in cashew production.

Guinea-Bissau exports to Asia non-fillet frozen fish and seafood, peanuts, palm kernels, and timber. License fees for fishing in their sea-zone (Gulf of Guinea) provide the government with some small revenue. Rice is the major crop and staple food. Due to European regulations fish and cashew-nuts exports to Europe are totally prohibited as well as agriculture products in general.

Economy of Guinea-Bissau
Banco Centra Da Guine Bissau
Central Bank of Guinea-Bissau in Bissau
CurrencyCFA franc
Calendar Year
Trade organisations
AU, African Development Bank, ECOWAS, World Bank, IMF, WTO, Group of 77
Statistics
GDPIncrease $1.963 billion (PPP) (2012 est.)
Rank: 193 (2012 est.)[1]
GDP growth
6.1% (2015), 5.8% (2016),
5.7% (2017e), 5.1% (2018f) [2]
GDP per capita
$1,200 (PPP) (2012 est.)
Rank: 211 (2012 est.)
GDP by sector
agriculture (55.7%)
industry (13.2%)
services (31.0%) (2012 est.)
Increase 2.4% (2012 est.)
Population below poverty line
63.9% with less than $2/day (2010 est.)
Labour force
632,700 (2007 est.)
Labour force by occupation
agriculture (82%)
industry and services (18%) (2000 est.)
UnemploymentN/A
Main industries
food processing, beer, soft drinks
172nd (2017)[3]
External
ExportsIncrease $244.0 million (2014 est.)
Export goods
non-fillet frozen fish, cashew nuts, peanuts, palm kernels, lumber, acyclic alcohols
Main export partners
 India 65.5%
 China 18.4%
 Vietnam 11.6%
 Netherlands 1.23%
(2014 est.)[4]
ImportsIncrease $398 million (2014 est.)
Import goods
refined petroleum, rice, soups and broths, malt extract, cement
Main import partners
 Senegal 22.7%
 Portugal 21.6%
 United Kingdom 16.5%
 India 4.4%
(2014 est.)[4]
Increase $1.095 billion (31 December 2010 est.)
Public finances
Revenues$129.1 million (2012 est.)
Expenses$153.4 million (2012 est.)
Economic aid$170.2 million (31 December 2012 est.)
Foreign reserves
Increase $168.6 million (2009 est.)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

Economic history

Early colonialism

Portugueseguineacompanyflag
The flag of the Guinea Company, a Portuguese company that traded in several commodities and slaves around the Guinea coast from the 15th century.

From a European viewpoint, the economic history of the Guinea Coast is largely associated with slavery. Indeed, one of the alternative names for the region was the Slave Coast. When the Portuguese first sailed down the Atlantic coast of Africa in the 1430s, they were interested in gold. Ever since Mansa Musa, king of the Mali Empire, made his pilgrimage to Mecca in 1325, with 500 slaves and 100 camels (each carrying gold) the region had become synonymous with such wealth. The trade from sub-Saharan Africa was controlled by the Islamic Empire which stretched along Africa's northern coast. Muslim trade routes across the Sahara, which had existed for centuries, involved salt, kola, textiles, fish, grain and slaves.[5]

As the Portuguese extended their influence around the coast, Mauritania, Senegambia (by 1445) and Guinea, they created trading posts. Rather than becoming direct competitors to the Muslim merchants, the expanding market opportunities in Europe and the Mediterranean resulted in increased trade across the Sahara.[6] In addition, the Portuguese merchants gained access to the interior via the Sénégal and Gambia rivers which bisected long-standing trans-Saharan routes.[7]

The Portuguese brought in copper ware, cloth, tools, wine and horses. Trade goods soon also included arms and ammunition. In exchange, the Portuguese received gold (transported from mines of the Akan deposits), pepper (a trade which lasted until Vasco da Gama reached India in 1498) and ivory.[7]

There was a very small market for African slaves as domestic workers in Europe, and as workers on the sugar plantations of the Mediterranean. The Portuguese found they could make considerable amounts of gold transporting slaves from one trading post to another, along the Atlantic coast of Africa. Muslim merchants had a high demand for slaves, which were used as porters on the trans-Saharan routes, and for sale in the Islamic Empire. The Portuguese found Muslim merchants entrenched along the African coast as far as the Bight of Benin.[7]

Before the arrival of the Europeans, the African slave trade, centuries old in Africa, was not yet the major feature of the coastal economy of Guinea. The expansion of trade occurs after the Portuguese reach this region in 1446, bringing great wealth to several local slave trading tribes. The Portuguese used slave labour to colonize and develop the previously uninhabited Cape Verde islands where they founded settlements and grew cotton and indigo. They then traded these goods, in the estuary of the Geba River, for black slaves captured by other black peoples in local African wars and raids.

The slaves were sold in Europe and, from the 16th century, in the Americas. The Company of Guinea was a Portuguese governative institution whose task was to deal with the spices and to fix the prices of the goods. It was called Casa da Guiné, Casa da Guiné e Mina from 1482 to 1483 and Casa da Índia e da Guiné in 1499. The local African rulers in Guinea, who prosper greatly from the slave trade, have no interest in allowing the Europeans any further inland than the fortified coastal settlements where the trading takes place. The Portuguese presence in Guinea was therefore largely limited to the port of Bissau.

Colonial era

As with the other Portuguese territories in mainland Africa (Portuguese Angola and Portuguese Mozambique), Portugal exercised control over the coastal areas of Portuguese Guinea when first laying claim to the whole region as a colony. For three decades there are costly and continuous campaigns to suppress the local African rulers. By 1915 this process was complete, enabling Portuguese colonial rule to progress in a relatively unruffled state - until the emergence of nationalist movements all over Africa in the 1950s.

For a brief period in the 1790s the British attempted to establish a rival foothold on an offshore island, at Bolama, but by the 19th century the Portuguese were sufficiently secure in Bissau to regard the neighbouring coastline as their own special territory. It was therefore natural for Portugal to lay claim to this region, soon to be known as Portuguese Guinea, when the European scramble for Africa began in the 1880s. Britain's interest in the region declined since the end of the British slave trade in 1807. After the abolition of slavery in the Portuguese overseas territories in the 1830s, the slave trade went into serious decline.

Portugal's main rival were the French, their colonial neighbours along the coast on both sides - in Senegal and in the region which became French Guinea. The Portuguese presence in Guinea was not disputed by the French. The only point at issue was the precise line of the borders. This was established by agreement between the two colonial powers in two series of negotiations, in 1886 and 1902-5. Until the end of the 19th century, rubber was the main export.

As an overseas province

In 1951, when the Portuguese government overhauled the entire colonial system, all Portugal's colonies, including Portuguese Guinea, were renamed Overseas Provinces (Províncias Ultramarinas). New infrastructures were built for education, health, agriculture, transportation, commerce, services, and administration.

Cashew, peanut, rice, timber, livestock and fish were the main economic productions. The port of Bissau was one of the main employers and a very important source of taxes for the province's authorities.

Independence war

The fight for independence began in 1956, when Amílcar Cabral founded the Partido Africano da Independência da Guiné e Cabo Verde (Portuguese: African Party for the Independence of Guinea and Cape Verde), the PAIGC. In 1961, when a purely political campaign for independence had made predictably little progress, the PAIGC adopted guerrilla tactics. Although heavily outnumbered by Portuguese troops (approximately 30,000 Portuguese to some 10,000 guerrillas), the PAIGe had the great advantage of safe havens over the border in Senegal and Guinea, both recently independent of French rule.

Several communist countries supported the guerrillas with weapons and military training. The conflict in Portuguese Guinea involving the PAIGC guerrillas and the Portuguese Army was the most intense and damaging of all Portuguese Colonial War. Thus, during the 1960s and early 1970s, Portuguese development plans promoting strong economic growth and effective socioeconomic policies, like those applied by the Portuguese in the other two theaters of war (Portuguese Angola and Portuguese Mozambique), were not possible. In 1972 Cabral sets up a government in exile in Conakry, the capital of neighbouring Guinea. It was there, in 1973, that he was assassinated outside his house - just a year before a left-wing military coup in Portugal dramatically altered the political situation.

By 1973 the PAIGC controlled most of the interior of the country, while the coastal and estuary towns, including the main populational and economic centres remained under Portuguese control. The village of Madina do Boé in the southeasternmost area of the territory, close to the border with neighbouring Guinea, was the location where PAIGC guerrillas declared the independence of Guinea-Bissau on September 24, 1973. The war in the colonies was increasingly unpopular in Portugal itself as the people got weary of war and balked at its ever-rising expense. Following the coup d'état in Portugal in 1974, the new left-wing revolutionary government of Portugal began to negotiate with the PAIGC and decided to offer independence to all the overseas territories.

After independence

As his brother Amílcar Cabral had been assassinated in 1973, Luís Cabral became the first president of independent Guinea-Bissau in the time after independence was granted on September 10, 1974. Already as the President of Guinea-Bissau, Luís Cabral tried to impose a planned economy in the country, and supported a socialist model that left the economy of Guinea-Bissau itself ruined. Similarly, the repression the authoritarian single-party regime[8] he led imposed on the population and severe food shortages also left marks and, despite having always denied, Luís Cabral was accused of being responsible for the death of a large number of black Guinea-Bissauan soldiers who had fought along with the Portuguese Army against the PAIGC guerrillas during the Portuguese Colonial War.[9]

Luís Cabral served from 1974 to 1980, when a military coup d'état led by João Bernardo "Nino" Vieira deposed him. After the military coup, in 1980 PAIGC admitted in its official newspaper "Nó Pintcha" (dated November 29, 1980) that many were executed and buried in unmarked collective graves in the woods of Cumerá, Portogole and Mansabá. All these events did not help the new-country to reach the level of prosperity, economic growth and development the new rulers had promised to its population.

Present day

Macro-economic trend

Guinea-Bissau Export Treemap
A proportional representation of Guinea-Bissau's exports.

Following the April 2012 coup d'État growth plunged to reach -1.5% of GDP. In 2013, the country's GDP grew only by 0.9%. This low growth level during a period of democratic transition is explained by a combination of low administrative efficiency, low investments on account of the political instability and a bad cashew export season.[10] Key macroeconomic indicators estimated by the African Development Bank are presented in the chart below:

Real GDP growth 2013 2014 (estimate) 2015 (projection) 2016 (projection)
Real GDP per capita growth 0.9 2.6 3.9 3.7
Real GDP per capita growth -1.5 0.2 1.6 1.3
Budget balance % GDP -1.4 -2.1 -3.9 -3.4
Current account balance % GDP -4.1 -0.5 -0.8 -1.2

Intermittent fighting between Senegalese-backed government troops and a military junta destroyed much of the country's infrastructure and caused widespread damage to the economy in 1998; the civil war led to a 28% drop in GDP that year, with partial recovery in 1999. Agricultural production is estimated to have fallen by 17% during the conflict, and the civil war led to a 28% overall drop in GDP in 1998. Cashew nut output, the main export crop, declined in 1998 by an estimated 30%. World cashew prices dropped by more than 50% in 2000, compounding the economic devastation caused by the conflict.

Before the war, trade reform and price liberalization were the most successful part of the country's structural adjustment program under IMF sponsorship. The tightening of monetary policy and the development of the private sector had also begun to reinvigorate the economy. Under the government’s post-conflict economic and financial program, implemented with IMF and World Bank input, real GDP recovered in 1999 by almost 8%. In December 2000 Guinea-Bissau qualified for almost $800 million in debt-service relief under the first phase of the enhanced HIPC initiative and is scheduled to submit its Poverty Reduction Strategy Paper in March 2002. Guinea-Bissau will receive the bulk of its assistance under the enhanced HIPC initiative when it satisfies a number of conditions, including implementation of its Poverty Reduction Strategy Paper.

Because of high costs, the development of petroleum, phosphate, and other mineral resources is not a near-term prospect. It produces 400,000 barrels/day of petrol.

Mean wages were $0.52 per man-hour in 2009. In 2019 the minimal monthly wage it is around 35000 CFA = 60 USD.

The following table shows the main economic indicators in 1980–2017.[11]

Year 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
GDP in $
(PPP)
0.44 Bln. 0.62 Bln. 0.84 Bln. 1.14 Bln. 1.37 Bln. 1.65 Bln. 1.73 Bln. 1.84 Bln. 1.94 Bln. 2.02 Bln. 2.14 Bln. 2.36 Bln. 2.36 Bln. 2.47 Bln. 2.54 Bln. 2.73 Bln. 2.92 Bln. 3.14 Bln.
GDP per capita in $
(PPP)
562 719 872 1,066 1,150 1,242 1,279 1,327 1,366 1,391 1,461 1,578 1,546 1,586 1,596 1,675 1,755 1,845
GDP growth
(real)
4.9 % 4.3 % 4.6 % 4.0 % 9.0 % 7.1 % 2.0 % 3.3 % 3.2 % 3.4 % 4.6 % 8.0 % −1.7 % 3.3 % 1.0 % 6.1 % 5.8 % 5.5 %
Inflation
(in Percent)
65.8 % 112.7 % 33.0 % 45.1 % 8.6 % 3.4 % 2.0 % 4.6 % 10.4 % −1.6 % 1.0 % 5.0 % 2.1 % 0.8 % −1.0 % 1.5 % 1.5 % 1.1 %
Government debt
(Percentage of GDP)
... ... ... ... 234 % 222 % 204 % 177 % 163 % 159 % 68 % 50 % 53 % 54 % 55 % 50 % 49 % 42 %

Financial sector

The financial sector of Guinea-Bissau is relatively underdeveloped: in 2013, financial intermediation accounted for 4% of GDP,[10] banking penetration is below 1% of the population (IMF 2013. Article IV Consultations – Guinea-Bissau, IMF Country Report No 13/197) and access to finance is cited as the second most important constraint for businesses.[12] As of 2015, only four banks were operating in the country. According to the IMF, regional private foreign banks held about 65% of shares in the Bissau-Guinean banking system (IMF 2013). Banks are regulated by the WAEMU authorities. In the aftermath of the civil war (1998/1999), private sector credit had fallen below 1% of GDP. In 2003 the balance sheets of banks amounted to EUR 21.3 million. Since then credit to the economy has risen to nearly 13.8% of GDP.[12]

"Terra Ranka" (A fresh start): a new economic plan

On March 25, 2015, the Government of Guinea-Bissau convened an international donor conference in Brussels.[13] Hosted by the European Union with support from the UNDP and other partners including the African Development Bank and the World Bank, the country's major partners joined in welcoming the country's new vision up to 2025, and to put pledges forth for its strategic and operational plan dubbed "Terra Ranka" (A fresh start).[14] Pledges totalled EUR 1.3 billion.[14]

The strategic and operational plan is composed of six pillars: (i) peace and governance, (ii) infrastructure, (iii) industrialisation, (iv) urban development, (v) human development and (vi) biodiversity. Each of the pillars is composed of a series of structuring projects to be financed either through direct donor support or through the mobilisation of private funding.[15]

Income from waste dumping

In the 1980s Guinea-Bissau was part of a trend in the African continent toward the dumping of waste as a source of income. Plans to import toxic waste from Europe were cancelled after an international campaign to halt the trade.[16] The government was offered a contract to dispose of 15 million tons of toxic waste over a 15-year period. The income from it was equivalent to twice the value of its external debt. After strong pressure from other African countries and environmental groups the Guinea-Bissau government renounced the deal.[17]

Drug trafficking

Over the last decade European consumption of cocaine is believed to have tripled,[18] and West Africa has become a primary transit point for trafficking the drug from Colombia to Europe.[19] Guinea-Bissau is the leading West African country in this regard, with smugglers taking advantage of government corruption and disorder to operate unimpeded.[20] The army and police are alleged to be complicit and lack of boats or planes to patrol or control the vaste sea-zone turn a blind eye to cocain drug shipments from Latin America. The local population does not have access to the drug. Planes fly in, and use Guinea-Bissau's 88 remote islands, the majority of which are uninhabited.

See also

References

  1. ^ https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html
  2. ^ "World Bank forecast for Guinea-Bissau, June 2018 (p. 153)" (PDF). World Bank. Retrieved 11 September 2018.
  3. ^ "Ease of Doing Business in Guinea-Bissau". Doingbusiness.org. Retrieved 2017-01-27.
  4. ^ a b "Guinea-Bissau (GNB) Exports, Imports, and Trade Partners". The Observatory of Economic Complexity. 2014. Retrieved 2016-08-27.
  5. ^ A.L. Epstein, Urban Communities in Africa - Closed Systems and Open Minds, 1964
  6. ^ B.W. Hodder, Some Comments on the Origins of Traditional Markets in Africa South of the Sahara - Transactions of the Institute of British Geographers, 1965 - JSTOR
  7. ^ a b c H. Miner, The City in Modern Africa - 1967
  8. ^ Widening trajectories: Guinea Bissau and Cape Verde since independence, Norrie MacQueen Archived April 23, 2015, at the Wayback Machine
  9. ^ A history of postcolonial Lusophone Africa, A history of postcolonial Lusophone Africa, Patrick Chabal, Edition: C. Hurst & Co. Publishers, 2002, ISBN 1-85065-594-4, ISBN 978-1-85065-594-7
  10. ^ a b "African Economic Outlook 2015: Guinea-Bissau" (PDF). Archived from the original (PDF) on 19 September 2015. Retrieved 20 January 2016.
  11. ^ "Report for Selected Countries and Subjects". Retrieved 2018-09-09.
  12. ^ a b Arvanitis, Yannis. "Providing Efficient Banking Services in a Fragile Environment: Structure, Performance and Perspectives of the Banking Sector in Guinea-Bissau" (PDF). African Development Bank. Retrieved 20 January 2016.
  13. ^ "Tera Ranka - Accueil". www.teraranka.gov.gw. Archived from the original on 2016-02-06. Retrieved 2016-01-28.
  14. ^ a b "Union européenne - SEAE (Service européen pour l'action extérieure) | Terra Ranka: un nouveau départ pour la Guinée-Bissau". eeas.europa.eu. Retrieved 2016-01-28.
  15. ^ Arvanitis, Yannis (December 2015). "Developing Public-Private Partnerships in Guinea-Bissau: Getting the Policy Framework Right" (PDF). African Development Bank: West Africa Policy Notes. Retrieved 2016-01-28.
  16. ^ Brooke, James (1988-09-25). "African Nations Barring Foreign Toxic Waste". The New York Times. Retrieved 2008-03-25.
  17. ^ Friman, H. Richard; Peter Andreas (1999). The Illicit Global Economy and State Power. Maryland, United States: Rowman and LIttlefield. ISBN 0-8476-9303-1.
  18. ^ Walt, Vivienne (2007-06-27). "Cocaine Country". Time. Retrieved 2009-07-13.
  19. ^ "Guinea Bissau requests INTERPOL assistance following major drugs seizure". Interpol. 2008-07-21. Archived from the original on 2008-08-14. Retrieved 2009-07-13.
  20. ^ Parenti, Christian (February 2009). "The Drug Coast". Playboy. Archived from the original on June 1, 2009. Retrieved 2009-07-13.

 This article incorporates public domain material from the CIA World Factbook website https://www.cia.gov/library/publications/the-world-factbook/index.html.

External links

BRVM

The Bourse Régionale des Valeurs Mobilières SA ("Regional Securities Exchange SA"), or BRVM, is a regional stock exchange serving the following west African countries:

Benin

Burkina Faso

Guinea Bissau

Côte d'Ivoire

Mali

Niger

Senegal

Togo.The exchange is located in Abidjan, Cote d'Ivoire. Market offices are maintained in each country.

BRVM is a private corporation with 2,904,300,000 CFA francs in capital.

The BRVM Composite Index climbed 18 percent in 2015.

Bank of West Africa (BAO)

Banque d'Afrique Occidentale (also B.A.O. or BAO or Banque de l'AOF): (French for Bank of West Africa) was a bank French colonial authorities established in 1901 in Dakar, Sénégal, as the central bank of the colonies of French West Africa.

Central Bank of West African States

The Central Bank of West African States (French: Banque Centrale des États de l'Afrique de l'Ouest, BCEAO) is a central bank serving the eight west African countries which share the common West African CFA franc currency and comprise the West African Economic and Monetary Union (UEMOA):

Benin

Burkina Faso

Guinea-Bissau

Ivory Coast (Côte d'Ivoire)

Mali

Niger

Senegal

TogoThe Bank is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.

Corruption in Guinea-Bissau

Corruption in Guinea-Bissau is among the highest levels in the world. In Transparency International's Corruption Perceptions Index for 2014, it was ranked 161st out of 175 countries. The previous year, it was at 163rd out of 177 countries. This marked a decline from its 2012 ranking, 150th out of 174 countries. In 2013, Guinea-Bissau scored below the averages for both Africa and West Africa on the Mo Ibrahim Foundation’s Index of African Governance.The Heritage Foundation stated that corruption is characteristic of the Bissau-Guinean government and economy. Government mismanagement in Guinea-Bissau, according to Transparency International's 2014 report on the country, has “created an environment conducive to corruption on a grand scale.” There is a culture of impunity, and citizens have no right to access information.Much of the corruption in Guinea-Bissau is related to the fact that the country is a hub of international drug trafficking. “Abject poverty, state collapse, lack of means and endemic corruption,” states one source, “have made Guinea Bissau a heaven for the Colombian drug lords.”

Geology of Guinea-Bissau

The geology of Guinea-Bissau is oldest in the east and becomes younger toward the west, with sediments from the past 66 million years nearer the coast. Some rock units in the northeast are as much as 680 million years old and throughout the geologic past Guinea-Bissau was influenced by the Mauritanide Belt orogeny and was submerged or partially submerged as a marine shelf or river delta for most of its existence.

Guinea-Bissau peso

The peso was the currency of Guinea-Bissau from 1975 to 1997 and was divided into 100 centavos. It replaced the escudo at par. In 1997, Guinea-Bissau adopted the West African CFA franc, using a conversion rate of 65 pesos to the franc.

List of banks in Guinea-Bissau

This is a list of commercial banks in Guinea-Bissau

Banco Da Africa Ocidental

Banco Da Uniao

Banque Régionale de Solidarité

Ecobank

List of companies of Guinea-Bissau

Guinea-Bissau, officially the Republic of Guinea-Bissau, is a country in West Africa. It is bordered by Senegal to the north and Guinea to the south and east, with the Atlantic Ocean to its west.

Guinea-Bissau is among the world's least developed nations and one of the 10 poorest countries in the world, and depends mainly on agriculture and fishing. Guinea-Bissau has started to show some economic advances after a pact of stability was signed by the main political parties of the country, leading to an IMF-backed structural reform program. The key challenges for the country in the period ahead would be to achieve fiscal discipline, rebuild public administration, improve the economic climate for private investment, and promote economic diversification.

After several years of economic downturn and political instability, in 1997, Guinea-Bissau entered the CFA franc monetary system, bringing about some internal monetary stability. The civil war that took place in 1998 and 1999 and a military coup in September 2003 again disrupted economic activity, leaving a substantial part of the economic and social infrastructure in ruins and intensifying the already widespread poverty. Following the parliamentary elections in March 2004 and presidential elections in July 2005, the country is trying to recover from the long period of instability despite a still-fragile political situation.

Mining industry of Guinea-Bissau

Mining in Guinea-Bissau is limited to small-scale production of construction materials, such as clays, granite, limestone, and sand and gravel. The country’s prospective minerals include bauxite, diamond, gold, heavy minerals, petroleum, and phosphate rock.

Outline of Guinea-Bissau

The following outline is provided as an overview of and topical guide to Guinea-Bissau:

Guinea-Bissau – country located in West Africa. Guinea-Bissau is the 8th least extensive country in continental Africa. It is bordered by Senegal to the north, and Guinea to the south and east, with the Atlantic Ocean to its west. Formerly the Portuguese colony of Portuguese Guinea, upon independence, the name of its capital, Bissau, was added to the country's name in order to prevent confusion between itself and the Republic of Guinea.

Portuguese Guinean real

The real (plural réis) was the currency of Portuguese Guinea until 1914. It was equal to the Portuguese real. Paper money specifically for Portuguese Guinea was first issued in 1909, supplementing Portuguese currency. Denominations were between 1000 réis (1 mil réis) and 50 mil réis.

The real was replaced by the escudo at a rate of 1 escudo = 1000 réis.

West African CFA franc

The West African CFA franc (French: franc CFA; Portuguese: franco CFA or simply franc, ISO 4217 code: XOF) is the currency of eight independent states in West Africa: Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo. These eight countries had a combined population of 105.7 million people in 2014, and a combined GDP of US$128.6 billion (as of 2018).The acronym CFA stands for Communauté Financière d'Afrique ("Financial Community of Africa") or Communauté Financière Africaine ("African Financial Community"). The currency is issued by the BCEAO (Banque Centrale des États de l'Afrique de l'Ouest, "Central Bank of the West African States"), located in Dakar, Senegal, for the members of the UEMOA (Union Économique et Monétaire Ouest Africaine, "West African Economic and Monetary Union"). The franc is nominally subdivided into 100 centimes but no centime denominations have been issued.

The Central African CFA franc is of equal value to the West African CFA franc, and is in circulation in several central African states. They are both called the CFA franc.

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