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Republished from Africa in Brief - November 7, 2025
Source: S&P Global
I was in Togo last week and now I’m curious about everything West African Economic and Monetary Union (WAEMU/UEMOA), an eight-country bloc of roughly 140 million people sharing the CFA franc (XOF) and a single central bank, the Central Bank of West African States (BCEAO). The union seems to be quietly tightening financial integration while modernizing its digital infrastructure. From Dakar to Lomé, UEMOA is rolling out instant payments and pulling fintechs into the formal system under one rulebook.
Why it matters:
- Shared rails, shared currency: The BCEAO launched an instant payments platform (PI-SPI) linking all eight members for 24/7 cross-border transactions — a major step toward a unified digital market.
- Fintech legitimacy: The BCEAO has now licensed about 30 fintechs, including 10 new approvals in September 2025.
- New rulebook: Instruction 001-01-2024, issued in January 2024, introduced tougher standards on capital, governance and compliance for fintechs and payment firms.
- Innovation bridge: The BCSF-UEMOA, BCEAO’s fintech unit, tracks 130+ startups and mediates between innovators and regulators — rare coordination on the continent.
- Currency credibility: The CFA franc’s peg to the euro has kept inflation among Africa’s lowest and built investor confidence in the zone’s stable members.
Dose of reality:
- Uneven integration: Stronger economies like Côte d’Ivoire and Senegal lead, while landlocked states lag.
- Security strains: Coups in Mali, Niger and Burkina Faso threaten cohesion and confidence.
- French ties linger: The euro peg ensures stability but fuels political resentment over perceived loss of monetary sovereignty.
Quick take: According to fintechs I spoke to last week in Togo, like Gozem and Solimi, UEMOA is an incredibly functional monetary union: one currency, one central bank and one fintech framework.
Sources: IMF 2025 West Africa Staff Report, UEMOA, BCEAO (Instruction No. 001-01-2024 PDF, PI-SPI Launch Press Release, Fintech and Digitalization Overview).
Source: IMF
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