Suspension of financial services
For the past few days, some Fintechs have undergone a suspension of financial services in Senegal and other UEMOA countries. The situation stems from non-compliance with the regulations in force. Today, the activities of several structures are impacted with economic and social consequences.
In recent days, fintechs have been on the alert, whether in Senegal or in other countries of the West African Economic and Monetary Union (UEMOA). Many of them are victims of a suspension of services linked to the absence of compliance with the regulations of the Central Bank of West African States (BCEAO). However, in a note published on March 19, the banking authority had launched yet another warning. “A transitional period of six months, from the signing of the said instruction, was granted to the structures concerned to comply with the requirements of the new regulatory provisions governing payment services,” said the regulator. Initially planned to end on July 23, 2024, this period was extended until January 31, 2025 by the advice of the BCEAO of September 25, 2024.
As of May 1, 2025, any structure not approved in accordance with the aforementioned investigation requirements must cease to offer payment services in the UMOA. Since April 30, some fintechs no longer work normally. This is, for example, the case of exchange money that allowed the conversion between Wave and Orange. According to a well-informed financial source, it was not the BCEAO that cut the fintech services, but rather the banks, financial institutions and approved money issuers who suspended their collaboration with these companies in order to comply with the regulations of the BCEAO. They are now required to comply with the standards relating to the Programming Interfaces Applications (API), that is to say the programming interfaces. Without that, it will be difficult for them to continue their activities. “The BCEAO is by no means the direct interlocutor of these non -approved establishments,” said the same source.
Economic and social consequences
For Amadou Diawara, CEO and founder of Famib Group, the current situation of payments in the UEMOA, marked by the brutal suspension of the activities of unkrocked payment establishments (EDP), plunges the economy of the region in a deep and unprecedented crisis. He believes that this situation is due, largely, to administrative slowness. “Many fintechs are still waiting for the processing of their approval files despite the entry into force of instruction n ° 01-01-2024 for more than a year”. He emphasizes that blocking affects wages, online payments and commercial flows. “Millions of citizens as well as sectors such as agriculture, health, services and trade depend on these types of payments for their daily transactions and suffer.” Mr. Diawara thus calls for an overhaul of the regulation of fintechs in the UEMOA space, so that it is more flexible, transparent and better suited to the realities of digital. “The regulation must aim to support the transformation. It should not be a brake, but a lever for development. ”
Demba Dieng
