The Democratic Republic of Congo (DRC), Africa’s second-largest nation by landmass and a mineral powerhouse, is embarking on a bold financial mission: restoring trust in the Congolese franc and reducing its overwhelming dependence on the U.S. dollar. Andre Wameso, the newly appointed governor of the Central Bank of Congo, has made this his top priority. His vision strikes at the heart of one of Africa’s most enduring economic dilemmas—how to build confidence in national currencies while curbing excessive reliance on foreign exchange.
Nearly 90% of transactions in Congo are conducted in U.S. dollars. From commodity exports such as copper, cobalt, gold, and oil, to everyday payments like rent and restaurant bills, the dollar dominates. Even civil servants who receive wages in francs often convert them instantly to dollars as a safeguard against currency depreciation. This reliance reflects not only Congo’s structural import dependence but also the legacy of hyperinflation in the 1990s, which destroyed public faith in the franc.
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The challenge for Wameso is steep: the Congolese franc continues to trade near record lows, underscoring its volatility. Yet his ambition is clear—“we need the population to trust its money again, because I don’t think we can build a new Congo with a currency other than the national currency.”
Building Institutional and Market Confidence
To tackle these issues, Wameso plans a multifaceted approach. One key measure is establishing a central clearing house in collaboration with the U.S. Treasury, which would allow transactions in dollars and francs to be settled locally rather than routed abroad. This move could reduce transaction delays, increase liquidity, and restore some confidence in the banking system.
Beyond that, the governor advocates for a deeper use of franc-denominated instruments—such as government securities and mortgages—to create a domestic financial ecosystem tied to the national currency. By reforming the housing market and social security system to favor franc-based payments, the aim is to gradually root more of Congo’s economic life in its own money.
Why This Matters for Africa
Congo’s experiment carries significance that transcends its borders. Africa is home to some of the most dollarised economies in the world—Angola, Mozambique, Sudan, Zimbabwe, and even oil-rich Nigeria have struggled with reliance on the greenback. This dependence often undermines monetary sovereignty, exposes nations to exchange rate shocks, and makes economies vulnerable to external interest rate cycles set in Washington rather than in their own
If Congo, despite its turbulent monetary history, can gradually restore confidence in the franc, it would provide a powerful precedent for other African countries wrestling with the same challenge. It would show that even economies scarred by hyperinflation can reassert control over their currencies through disciplined reforms, credible institutions, and strategic sectoral adjustments.
Africa’s path to deeper regional integration under the African Continental Free Trade Area (AfCFTA) hinges on stronger domestic currencies and less dependence on the dollar in intra-African trade. A revitalised Congolese franc—supported by reforms in banking, housing, and social systems—could help accelerate local trade settlements in regional currencies rather than dollars, reducing costs and fostering resilience.
Moreover, given Congo’s central role as a supplier of cobalt, copper, and other critical minerals that underpin global green transitions, denominating more of its economic activity in francs would symbolically and practically enhance Africa’s leverage in global trade.
Andre Wameso’s mission is not just about saving a currency—it is about redefining the economic sovereignty of a resource-rich African nation and setting an example for others. For Congo, success would mean shifting from a dollar-dependent economy to one that values and invests in its own currency. For Africa, it represents a test case: can nations scarred by currency crises rewrite their monetary destinies and reduce reliance on the U.S. dollar?
The outcome of Congo’s franc revival will be watched closely across the continent. Its success—or failure—will ripple far beyond Kinshasa, touching the core of Africa’s financial future.
