Kagame Urges African Leaders To Back Common Currency To Break Western Economic Grip.
Rwandan President Paul Kagame has renewed his call for a unified African currency backed by the continent’s vast natural resources, arguing that dependence on the US dollar and euro perpetuates Western control over African economies. Speaking at a regional economic summit in Kigali, Kagame described the current global financial system as a form of “modern slavery and colonisation,” urging African leaders to unite in creating a resource-backed currency to foster economic sovereignty.
Kagame’s remarks, which echo sentiments he has expressed since 2021, highlight the frustration of many African leaders with a financial system that requires nations to trade their resources in foreign currencies. “As long as Europe and America control our money, they will control our economy,” he stated, questioning why African countries sell their products to the US in dollars, to Europe in euros, and to China in yuan. He argued that this practice undervalues Africa’s resources, as foreign powers acquire them without needing African currencies in return.
The proposed African common currency, Kagame suggested, would be supported by the continent’s abundant natural resources, such as gold, oil, and critical minerals, rather than tied to Western currencies. He cited the example of China, which sells goods in its own currency to gain economic leverage, and called for African nations to adopt a similar approach. “Our resources are not valueless. They must be traded in our own currency to reflect their true worth,” he said, invoking the vision of the late Libyan leader Muammar Gaddafi, who championed a unified African currency before his death in 2011.
The Rwandan leader’s proposal aligns with ongoing efforts to boost intra-African trade and reduce reliance on foreign financial systems. The African Continental Free Trade Area (AfCFTA) and initiatives like the Pan-African Payments and Settlements System, which facilitates transactions in local currencies, were highlighted as steps towards economic independence. However, Kagame acknowledged significant challenges, including the need for unity among African nations and robust infrastructure to support a continental currency. Economists, such as Dr. Amina Salum from the University of Nairobi, have described the idea as “bold but ambitious,” noting that success depends on overcoming political divisions and logistical hurdles.
Kagame’s comments come amidst Rwanda’s own economic transformation, with the country achieving an 8.9% GDP growth rate in 2024, according to the African Development Bank. Yet, he warned that such progress remains vulnerable as long as Africa’s economies are tethered to Western financial systems. Social media sentiment reflects strong support for Kagame’s pan-African vision, with many praising his push for self-reliance, though some critics argue that regional rivalries and external pressures, including potential US tariffs, could complicate implementation.
As Africa navigates a complex global economic landscape, Kagame’s call for a resource-backed currency has reignited debate about the continent’s path to true economic sovereignty. Whether this vision can unite African leaders and reshape the global financial order remains a formidable challenge.