In an era where the economic tides are shifting towards multipolarity, Africa’s reliance on the US dollar is increasingly viewed as a constraint on its economic potential. In a recent exclusive interview with RT, Mashood Jacob Ajene, an expert with the Africa-Russia Research Centre in Ghana, expressed optimism that de-dollarization could bolster Africa’s economic resilience and developmental prospects. He made his remarks during the Ministerial Conference of the Russia-Africa Partnership Forum, which took place near Sochi, Russia. This forum underscored the importance of Africa’s pursuit of financial sovereignty and economic independence, as well as the continent’s potential in embracing a multipolar world order.

Ajene’s viewpoint reflects a growing consensus among African policymakers and economists, who see de-dollarization as a pathway to enhanced financial stability, less vulnerability to global currency fluctuations, and stronger economic positioning. With Africa home to over 1.2 billion people, its collective economic force is substantial, yet its dependency on the US dollar ties its fate closely to the dollar’s own volatile trajectory. A shift away from the dollar, Ajene argues, could allow African nations to better control their financial futures, especially as countries like Russia and China challenge the dominance of the US-led economic order.

One of Ajene’s boldest propositions involves the adoption of a single African currency, an idea that has been discussed for decades but has yet to be fully realized. The notion of a pan-African currency evokes memories of other single-currency initiatives, such as the Euro in the European Union, which has both bolstered economic integration and streamlined financial transactions across member states. In Ajene’s view, a unified currency could be Africa’s answer to the limitations imposed by the dollar-centric global economy.

Such a currency could help minimize transaction costs, stabilize regional economies, and foster intra-African trade. Currently, African countries often face high currency conversion fees when trading with each other, a hurdle that could be mitigated by a single currency. This proposal could also reduce Africa’s exposure to foreign exchange rate fluctuations, a constant challenge for countries with high levels of external debt denominated in dollars.

A move toward a single currency, however, would require unprecedented levels of cooperation among African states, as well as effective governance mechanisms. The challenges of implementing and maintaining such a currency include varying levels of economic development, diverse monetary policies, and political considerations. Despite these obstacles, the idea aligns with the African Union’s long-term goals and could be pursued gradually as African nations strengthen their economic cooperation.

Ajene’s views reflect a broader trend in Africa’s geopolitical landscape, where nations are increasingly looking toward Russia, China, and other non-Western powers for partnerships and investments. Both Russia and China have made significant inroads into Africa through trade, infrastructure projects, and financial investments, which have allowed them to gain a strategic foothold on the continent. These partnerships, Ajene argues, offer Africa an alternative path that does not rely solely on Western powers or the US dollar.

For instance, China has heavily invested in Africa through its Belt and Road Initiative (BRI), which has brought significant infrastructure development to the continent, though it has also sparked debates around debt sustainability. Russia, meanwhile, has expanded its influence through energy projects, arms sales, and political alliances. These alliances reflect Africa’s shift towards multipolarity, where it can forge partnerships that align with its own developmental priorities rather than those imposed by Western financial institutions.

Ajene also highlighted the US dollar’s symbolic and practical power in maintaining US global hegemony. “The US is very powerful because of the dollar, and the dollar is only a paper,” he said, pointing out that Africa’s reliance on the dollar limits its financial sovereignty. Reducing this dependency, he believes, could empower African nations to make independent policy decisions that serve their populations more effectively.

Ajene also touched upon US foreign policy under the potential re-election of Donald Trump, who has pledged to end the Russia-Ukraine conflict within 24 hours if re-elected. This, Ajene suggests, underscores the role of Western powers in global conflicts, especially in regions like Eastern Europe. Trump’s promise, though controversial, reflects a possible pivot in US foreign policy that could ease global tensions and, consequently, impact Africa’s position on the world stage.

A more restrained US foreign policy, as Ajene contends, might free Africa from some of the geopolitical pressures tied to its alliances and economic dependencies. African countries could gain leverage by balancing relationships with multiple global powers, a stance that aligns with the vision for a multipolar world where no single nation or currency holds absolute sway. In this multipolar framework, African nations might find the strategic flexibility to pursue their own interests without being drawn into great-power conflicts.

South Africa’s Deputy Minister of International Relations and Cooperation, Thandi Moraka, echoed these sentiments during the Russia-Africa Partnership Forum. Speaking to the media, Moraka emphasized the need for Africa to assert its independence in developmental matters and to reduce its reliance on Western powers. “It’s high time for the African countries or the countries in the Global South to really stand up on their own and be able to dismantle the power authorities that have been at the center of the unipolar world,” she stated.

Moraka’s statement points to a desire within Africa to shape its development on its own terms. She advocated for unity among Global South nations and for a collaborative approach to tackling common challenges. Her vision involves a transition from the unipolar system dominated by Western powers to a multipolar world where every country’s sovereignty is acknowledged and respected.

This aspiration resonates with the broader Global South, which has long argued that Western-dominated financial and political institutions, like the International Monetary Fund and the World Bank, impose conditions that prioritize Western interests over those of recipient nations. By seeking to chart their own economic paths, African nations are signaling a desire to break free from the “one-size-fits-all” prescriptions often imposed by these institutions, which can stifle growth and infringe upon national sovereignty.

The discussions at the Ministerial Conference of the Russia-Africa Partnership Forum underscored Africa’s growing interest in multipolarity. This alignment with multipolar advocates, including Russia and China, is part of Africa’s broader shift toward a foreign policy based on diversification and economic autonomy. This move represents a strategic recalibration that could reduce Africa’s vulnerability to external economic shocks and provide a foundation for long-term, sustainable growth.

De-dollarization, whether through a single African currency or diversified global partnerships, offers a path for Africa to strengthen its economic independence. The continent’s leaders recognize that economic sovereignty is crucial to achieving their developmental goals and protecting their nations from external economic pressures. By embracing a multipolar world, African nations can aspire to a future where they are no longer at the mercy of a single currency or foreign influence, creating a landscape ripe with potential for homegrown solutions to Africa’s unique challenges.

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