Terrorism and Regional Integration in Sub-Saharan Africa: The Case of the CFA Franc Zone

The chapter seeks to provide insights on the alternatives for financing sustainable development in the Sub- Saharan Africa (SSA). It has been highlighted in the chapter that the region faces the danger of not attaining the SDGs due to poor political systems, climate change, high population growth and restricted economic growth and development. This comes in the midst of declining and unpredictable Official Development Assistance (ODA) plus other domestic and foreign financing instruments. Despite the constraints, the chapter has explored the potential for the region to attain and maintain the Sustainable Development Goals (SDGs) way beyond 2030. Sub-Saharan Africa has a lot of natural resources and a favorable demographic structure. Furthermore, the region has shown some signs of industrial development of late and increasing regional integration which are key to economic transformation. Finally, the chapter has highlighted some policy recommendations in order for the region to realise its potential and attain the SDGs.

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The CFA Franc Zone

The Oxford Handbook of Africa and Economics ◽

10.1093/oxfordhb/9780199687107.013.008 ◽

2015 ◽

Author(s):

Célestin Monga ◽

Justin Yifu Lin ◽

Jean-Claude Tchatchouang

Keyword(s):

Franc Zone ◽

Cfa Franc Zone ◽

Cfa Franc

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Asymmetry in Exchange Rate Pass-Through to Consumer Prices: New Perspective from Sub-Saharan African Countries

Economies ◽

10.3390/economies7010005 ◽

2019 ◽

Vol 7 (1) ◽

pp. 5

Author(s):

Diby François Kassi ◽

Dilesha Nawadali Rathnayake ◽

Akadje Jean Roland Edjoukou ◽

Yobouet Thierry Gnangoin ◽

Pierre Axel Louembe ◽

...

Keyword(s):

Exchange Rate ◽

Exchange Rate Regimes ◽

Short Term ◽

Franc Zone ◽

Consumer Prices ◽

Cfa Franc Zone ◽

The Exchange Rate ◽

Sub Saharan ◽

Pass Through ◽

Exchange Rate Pass Through

This paper examines the asymmetrical relationship between exchange rate and consumer prices in 40 sub-Saharan African (SSA) countries from 1990Q1 to 2017Q4. We estimate the exchange rate pass-through (ERPT) to consumer prices for each country by using the nonlinear autoregressive distributed lag (NARDL) framework and dynamic panel techniques robust to cross-sectional dependence. First, our findings suggest an asymmetrical ERPT in the SSA region during the short term, whereas there are mixed results across subregions in the long term. Second, the results of the panel analysis suggest incomplete and significant ERPT to consumer prices in the entire SSA region, which is higher during depreciation of the local currency than after appreciation in the short-term, especially in the CFA Franc zone. Third, we find nonlinear ERPT with respect to the size of the exchange rate. Finally, we find that pass-through is higher in countries with fixed exchange rate regimes (CFA franc zone) in a low inflationary environment than in countries with floating exchange rate regimes and high inflation levels. Pass-through is greater during large exchange rate changes than after small changes. Therefore, the policy implication is to consider these asymmetries and nonlinearities to improve monetary policy’s credibility, enhance trade liberalization, and promote competitive market structures in the SSA region.

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