Fintech innovation in Francophone West Africa is advancing steadily, with Côte d’Ivoire and Senegal emerging as regional leaders. Côte d’Ivoire’s fintech ecosystem is among the most vibrant, supported by clear regulatory frameworks established by the 2015 reforms of the Banque Centrale des États de l’Afrique de l’Ouest (BCEAO), the Central Bank of West African States.
These reforms enabled nonbank entities to issue e-money and manage agent networks independently, fostering growth and resilience.
Startups like Djamo and Julaya have attracted significant investment and expanded digital banking and payment services, positioning Côte d’Ivoire as a benchmark for fintech development. The country is also advancing digital governance and innovation through initiatives like the National Digital Development Strategy and the Electronic Administration Support Project, backed by significant investments to boost digital infrastructure and entrepreneurship.
Senegal’s fintech sector is rapidly expanding, supported by over 22 million active mobile connections equivalent to 121% of the population with 90% broadband-capable, providing a strong foundation for Digital Financial Services (DFS). The government’s New Deal Technologique and investments exceeding $18 million to support micro-enterprises and startups underscore its commitment.
Fintechs like Wave and InTouch are driving digital payments and banking innovation across the region. Despite these advances, fintech startups across Francophone West Africa—including Togo, Burkina Faso, Mali, Cameroon, and Niger—confront persistent challenges that limit their ability to scale and deepen financial inclusion.
Challenges Facing Fintech Growth in Francophone West Africa
1. Limited Access to Fintech Funding
Startups throughout the region struggle to secure early-stage funding, particularly pre-seed and seed capital tailored to fintech business models. This funding gap slows innovation and constrains growth. While some government-backed funds and international initiatives exist, they remain insufficient to meet demand.
2. Complex Regulation and Monetary Policy Constraints
In the West African Economic and Monetary Union (WAEMU), fintechs operate under regulations set by the BCEAO. It enforces interest rate caps and foreign exchange controls impacting fintech growth.
For example, the BCEAO’s benchmark policy rate will remain around 3.25% in 2025, limiting fintech lenders’ ability to offer competitively priced credit, especially to small businesses and informal sectors. Foreign exchange restrictions tied to the CFA franc’s peg to the euro complicate cross-border payments and regional expansion, requiring fintechs to navigate strict compliance and liquidity rules.
Since January 2024, BCEAO’s Instruction №001–01–2024 mandates fintech licensing, minimum capital requirements (from about €16,500 to €165,000), data localization, and anti-money laundering measures. Despite extensions, many fintechs missed deadlines, leading to a freeze on unlicensed operations from May 2025. This caused widespread disruptions in countries like Senegal and Côte d’Ivoire affecting millions of users.
While these measures aim to protect financial stability and comply with international standards, the rapid enforcement has raised concerns about its impact on fintech innovation and inclusion.
Jacqueline Brøndberg, founder of MagmaSend—a fintech operating across Francophone West Africa—highlighted the complexities of regulation and interoperability in the region.
“MagmaSend was created to meet the need for a seamless payment infrastructure that supports all payment methods across the region. We facilitate bank transfers, mobile money, and cash pickup services through our extensive physical distribution network, mobile network operators (MNOs), and banking partners,” she explained.
Brøndberg added: “One of the biggest challenges we addressed was enabling our partners to prefund in one country and efficiently process payouts across the region. I’m proud to say we have successfully overcome this major interoperability hurdle.”
She also pointed to the ongoing challenges of working within an evolving regulatory environment: “Regulation has long been a grey area, especially for cross-border operations. To navigate this, we have partnered with banks to ensure compliance and keep central banks informed about our products. While new regulations can pose challenges for newcomers and innovators—requiring strict financial discipline and thorough preparation—I am optimistic about the future.”
3. Weak Infrastructure and Connectivity
Uneven digital infrastructure hampers fintech adoption. Poor internet coverage and unreliable mobile networks, especially outside urban centers, cause transaction failures. Many users rely on basic phones, requiring Unstructured Supplementary Service Data (USSD) or SMS-based services, which remain underdeveloped.
4. Low Financial and Digital Literacy
Low literacy levels reduce adoption and trust. Language barriers and limited education highlight the need for fintechs to invest in accessible education and intuitive interfaces.
5. Talent Shortages and Weak Startup Ecosystems
A shortage of skilled professionals and underdeveloped support ecosystems limit startup capacity. Incubators, accelerators, and mentorship programs are nascent or fragmented.
Jacqueline Brøndberg added that attracting talent continues to be a pain point: “On the operational side, attracting key talent remains a challenge in our still-emerging digital market. That’s why we focus on training and nurturing local talent—our ‘hidden gems.’ This approach has been crucial to our success, as these individuals possess deep local knowledge, which we complement with essential management and business skills.”
6. Gaps in Consumer Protection and Rising Fraud Risk
Growing digital transactions increase fraud risks. Many countries lack strong consumer protection policies and enforcement, undermining user confidence.
Market Snapshots: Country-Level Fintech Insights
Côte d’Ivoire: Regional Fintech Leader
Côte d’Ivoire leads with a mature fintech ecosystem, clear regulation, and strong mobile infrastructure. Startups like Djamo and Bizao have secured significant funding and expanded regionally. The country’s mobile-first payment culture and innovative platforms set it apart. Challenges remain in extending services beyond urban centers and improving digital literacy.
Senegal: Digital Ambition Amid Regulatory Complexity
Senegal’s fintech sector benefits from strong mobile penetration and government support through initiatives like the New Deal Technologique. Fintech startups such as Wave and InTouch are expanding digital payments and banking services. However, regulatory complexity and fragmented oversight remain key challenges, impacting licensing and market growth.
Togo: Small Market with Policy Willpower
Togo shows government commitment but faces a small market size, low digital literacy, and limited early-stage funding. Regulatory processes remain complex.
Burkina Faso: Infrastructure Gaps and Fraud Risk
Network instability and power outages disrupt fintech services. Fraud risks are significant, and consumer protection frameworks require strengthening. Tailored rural financial products are underdeveloped.
Mali: High Costs and Slow Policy Response
Regulatory delays and high transaction costs disrupt fintech operations. Products often do not meet rural and informal sector needs. Entrepreneurial support and funding are insufficient.
Cameroon: Policy Barriers and Cautious Innovation
Regulatory uncertainty and foreign exchange restrictions limit fintech growth. While cryptocurrency transactions are discouraged under the Communauté Économique et Monétaire de l’Afrique Centrale (CEMAC) monetary policy, enforcement varies across member states, and some fintechs cautiously explore blockchain applications within regulatory limits. Cybersecurity and rural inclusion need improvement.
Niger: Lagging Inclusion and Connectivity
Niger faces very low financial inclusion and digital penetration. Infrastructure gaps, low literacy, and nascent regulation limit fintech adoption. Cross-border payment challenges persist, though regional initiatives like the Pan-African Payment and Settlement System (PAPSS) aim to improve interoperability and reduce friction.
Opportunities for Fintech Scale and Impact
Despite persistent challenges, there are several high-impact opportunities to expand and strengthen fintech in Francophone West Africa. From improving digital access in rural areas to deepening regional integration and fostering local collaboration, targeted strategies can accelerate innovation and broaden financial inclusion across the region. Below are key opportunity areas where both startups and ecosystem enablers can create lasting value:
Expand Rural Access and Build Trust
Develop agent networks and low-tech solutions to reach underserved populations. Implement multilingual education campaigns and user-friendly interfaces. – Using minimal design in their apps to reduce complexity. – Open communication—clearly stating fees to avoid surprises. – Installing security features (2FA and biometrics) to demonstrate commitment to user safety. – Including educational content to empower users and reduce fear of the unknown.
Implement multilingual education campaigns and user-friendly interfaces. – Using minimal design in their apps to reduce complexity. – Open communication—clearly stating fees to avoid surprises. – Installing security features (2FA and biometrics) to demonstrate commitment to user safety. – Including educational content to empower users and reduce fear of the unknown.
Strengthen Regulation, Talent, and Regional Integration
To accelerate fintech growth and ensure sustainable innovation, the region must:
- Establish transparent, fintech-friendly licensing and compliance processes.
- Invest in training, mentorship, and industry networks to address talent gaps.
- Develop and enforce anti-fraud measures and data privacy regulations.
- Leverage WAEMU, Economic Community of West African States (ECOWAS), and PAPSS frameworks to facilitate cross-border payments and scaling.
Emphasize Local Collaboration for Scalable Solutions
Collaboration has proven to be a key factor in driving fintech success at scale—especially when navigating the logistical and regulatory challenges unique to West African markets. Companies that foster deep partnerships across the ecosystem are better positioned to serve hard-to-reach populations and operate across borders.
“MagmaSend’s success is built on collaboration—collaboration, collaboration, collaboration—to engage all stakeholders effectively,” Brøndberg noted. “We are proud of our long-standing partnership with La Poste Côte d’Ivoire, the largest brick-and-mortar network in Ivory Coast, which plays a vital role in our regional reach. The WAEMU region as a whole is booming and we see new players, partners and interested parties enter every day—this is the valley of West Africa. So much to do still.”
Conclusion: Unlocking Fintech’s Potential in Francophone Africa
Côte d’Ivoire and Senegal exemplify how clear regulation, strong infrastructure, and government support can foster thriving fintech sectors. Across Francophone West Africa, fintech startups face common obstacles—funding shortages, regulatory hurdles, infrastructure gaps, and literacy barriers—that must be addressed to unlock the region’s full potential. Focused investments, policy clarity, and ecosystem development will enable fintechs to drive financial inclusion and economic growth throughout the region.
