Forget about the dollars, euros, and other currencies; the East African nations have come together to establish Africa’s most formidable currency to date. Named the SHEAFRA, an amalgamation of Shilling of East Africa and Franc, it will be denoted as Shf.
According to a statement from the EAC-IPU, the value of 1 Sheafra is approximately 175.35 Kenyan Shillings or Tsh. 2,800. The statement highlights, “This signifies that $1 equates to EA.Shf 1.32, solidifying Sheafra as Africa’s premier and most robust currency.”
On Sunday, February 3rd, the East African Government unveiled the highly anticipated unified currency among the seven nations: Kenya, DRC, Burundi, Rwanda, Tanzania, Uganda, and South Sudan. These nations are set to adopt the currency, referred to as SHF. During its launch, the EAC announced that the currency would be available in six denominations for the community. However, the EAC government disclosed that the currency’s implementation would be postponed until further notice, as it was still in the specimen phase.
WHAT YOU NEED TO KNOW ABOUT THE SHEAFRA
For a considerable duration, whenever African nations have endeavored to collectively establish measures that could potentially diminish the dominance of the US dollar in transactions within the continent, apprehension has often permeated across Africa. There’s a prevailing sentiment that powerful entities in the Western world might intervene to thwart any such initiatives aimed at undermining the supremacy of the US dollar.
A prominent example frequently cited is the case of Muammar Gaddafi, the former president of Libya, who was rumored to have entertained plans to introduce a common currency across Africa. This currency was purported to challenge the stability of other foreign currencies, particularly the dollar. However, not long after, Gaddafi met his demise under circumstances that many believe were orchestrated by these influential forces resistant to African advancement.
It’s a well-known fact that a significant portion of global trade is conducted in US dollars, especially within the borders of East Africa. Therefore, the adoption of the East African Sheafra is perceived as positive news for the East African region but is met with disfavor from Western entities who have long upheld the dollar as the preeminent currency. This move signifies a potential devaluation of the US dollar within the East African community, which includes the Democratic Republic of Congo, the world’s sixteenth-largest producer of gold.
The introduction of the SHEAFRA is anticipated to foster regional economic growth and support the envisioned African common currency (AFRO). The management of the new currency will be overseen by the Bank of East Africa under the jurisdiction of the Federal Republic of East Africa. Nonetheless, member countries of the East African Community (EAC) are yet to finalize the selection of financial institutions tasked with supervising their respective central banks.
At the bottom of the note, you’ll find the inscription ‘The East African Sheafra’ boldly displayed in uppercase letters. This currency note boasts a magnetic strip for security and two watermarks showcasing the East African Logo and the currency’s initials, SHF. Moreover, to attest to its authenticity, the currency bears the signatures of the bank’s governor and secretary.
However, skepticism persists regarding the currency. Some fear potential delays in its implementation due to disagreements among member states. The concern lies in the tendency for people to become nationalistic, leading to disputes over trivial matters such as the symbols to be featured on the currency.
Modeled after the euro, the official currency of the Eurozone, which comprises 19 member states of the European Union, the SHEAFRA currency will operate similarly. It will facilitate transactions within the East African Community countries and is anticipated to become Africa’s strongest currency.
Many view this initiative as a step toward introducing a single currency among African nations. In June 2023, Kenyan President William Ruto urged African nations to adopt local currencies for intra-continental trade, reserving the US dollar for transactions involving the United States.
In his impassioned address, President Ruto underscored the significance of promoting economic integration and reducing reliance on foreign currencies. He emphasized the potential for using local currencies to empower African economies, fostering regional financial stability, and enhancing economic autonomy.
Facebook Comments