Microfinance and mobile money growth in West Africa

Senegal has established itself as a regional leader in the West African Economic and Monetary Union (UEMOA) microfinance and electronic money markets. Data from 2025 indicated that Senegal held 26.5% of regional microfinance assets and 29.7% of the electronic money market, hosting 81 large-scale microfinance entities.

Despite this leadership, the regional sector faced regulatory hurdles, including a decline in average microfinance capitalization ratios from 13.0% to 9.4%, which fell below the 15% regulatory standard. This led to increased disciplinary actions and fines from the UEMOA Banking Commission to ensure compliance.

By August 2026, the digital payment landscape showed further specialization, with the company Wave controlling approximately 80% of Senegal’s mobile money market. In Senegal, discussions between government officials and Wave representatives focused on expanding digital public services into transport, health, and treasury sectors. Simultaneously, in Burkina Faso, mobile payments have become essential for rural financial access and daily transactions, though the region continues to face challenges regarding financial literacy.