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How Many Countries In Africa Print Their Own Currencies?
The ability to print and manage one's currency is a significant indicator of economic self-sufficiency and sovereignty. However, in Africa, the story is more complex, with many nations still relying on foreign companies for their currency production. As of 2024, less than a quarter of Africa's 54 countries have the infrastructure and capability to print their own money.
Countries That Print Their Currency
Only a small number of African nations have developed the capacity to print their currencies domestically. These include:
- Nigeria: The Nigerian Security Printing and Minting (NSPM) is responsible for producing the Naira. While Nigeria sometimes supplements its production with imports, most of its currency is printed locally.
- South Africa: The South African Bank Note Company, established in 1958, handles the production of the South African Rand.
- Kenya: The Kenyan Shilling is printed locally by De La Rue in Nairobi, making Kenya one of the few East African countries with this capability.
- Morocco: The Moroccan Dirham is printed by the Bank al-Maghrib.
- Egypt: The Egyptian Pound is printed by the Central Bank of Egypt, which established its printing house in 1967.
- Algeria: The Algerian Dinar is printed by Banque d’Algérie, the country's central bank.
- Sudan: The Sudanese Pound is printed by the Sudan Currency Printing Press, a private entity established in 1994.
- Zimbabwe: After a period of hyperinflation and dollarization, Zimbabwe resumed printing its currency in 2019.
These countries, though capable of printing their own money, occasionally rely on imports to supplement domestic production.
Countries That Outsource Currency Production
In stark contrast, more than 40 African nations outsource the printing of their currencies to foreign companies, primarily in Europe and North America. This includes many smaller economies that find it more cost-effective to print abroad rather than invest in domestic printing facilities. For example:
- Gambia: The Gambian Dalasi is printed in the UK. The Gambia does not have the facilities to print its own money and faces challenges like shortages due to delays in printing.
- Ethiopia, Libya, and Angola: These countries outsource their currency production to the British banknote printing company De La Rue.
- Francophone African Countries: Many French-speaking African nations, such as Senegal and Ivory Coast, print their currencies in France, often through arrangements tied to their colonial past.
Why Do So Many African Countries Outsource Currency Printing?
Outsourcing currency production is not unique to Africa; many smaller countries globally do the same due to the high costs of establishing and maintaining secure printing facilities. For many African nations, the decision to outsource is driven by financial prudence. Setting up a currency printing press requires significant investment in technology, security, and expertise. For countries with smaller populations or less frequently used currencies, the costs can outweigh the benefits.
Additionally, outsourcing can sometimes offer more advanced security features that smaller nations might struggle to implement. Companies like De La Rue and Giesecke+Devrient, which print currencies for many African countries, have decades of experience and the latest technology to produce secure, counterfeit-resistant banknotes.
The Future of Currency Printing in Africa
There is a growing awareness of the need for economic self-sufficiency in Africa, and some countries are gradually moving towards localizing currency production. However, the transition is slow, and for the foreseeable future, many African nations will continue to rely on foreign companies for their currency needs.
As the African Union pushes for greater economic integration and self-reliance, the number of countries capable of printing their currency may increase, but significant hurdles remain in terms of cost, expertise, and infrastructure development.
Conclusion
Currency production in Africa presents a complex picture of economic capacity and colonial legacies. While some countries have made strides towards self-sufficiency, the majority still depend on foreign entities to produce their money. This reliance raises questions about economic sovereignty and the future of financial autonomy on the continent.
