Senegal is one in every of many international locations throughout the Center East and Africa attempting to diversify its economic system and future-proof itself by internet hosting monetary inclusion by using fintech options.
Traditionally, Senegal’s economic system has centred round agriculture, notably peanuts. Nonetheless, in latest a long time, the federal government has engaged in efforts to diversify the economic system to incorporate different agricultural merchandise, in addition to non-agricultural sectors reminiscent of tourism and pure sources like oil, fuel, and gold.
Capital and monetary hub
Dakar
Key Financial Growth Technique
Financial, monetary providers and fintech overview
By 2025, the federal government goals to create 35,000 new jobs within the expertise sector. Cell phone utilization in Senegal has surpassed 60 per cent this 12 months. Regardless of this digital development, solely seven per cent of the inhabitants utilises conventional monetary providers.
As a Francophone nation situated in West Africa, Senegal is comparatively secure and affluent in comparison with a few of its neighbouring international locations. It’s a member of the West African Financial and Financial Union (WAEMU), and its fiscal and financial insurance policies are influenced by this union, together with overseas trade controls.
Nonetheless, Senegal stays a creating economic system with vital challenges in financial inclusion, notably in rural areas. The vast majority of conventional monetary providers infrastructure, reminiscent of ATMs and point-of-sale terminals, are concentrated within the capital metropolis of Dakar, leaving rural areas underserved. Moreover, money stays the popular cost methodology for 56 per cent of Senegalese.
Fintech presents alternatives to deal with these challenges and promote monetary inclusion. Cell cash, specifically, has had a big influence, with over 70 per cent of adults in Senegal reporting its use inside the final 30 days.
Fintech firms like Wave, Senegal’s solely fintech unicorn in addition to Nigeria and Egypt, Bayseddo, a crowdfunding platform for agribusinesses, and Sudpay, providing a number of cost options, are main the best way in leveraging expertise to enhance monetary entry and providers in Senegal.
Key organisations
Central Financial institution of the West African States (BCEAO)
The widespread issuing establishment of the eight West African member States of BCEAO
Company for Funding Promotion and Main Tasks (APIX)
The nation’s funding promotional company
Senegalese Data Expertise Affiliation (SITSA)
The primary nationwide affiliation to symbolize the knowledge business and professionals in Senegal
Breakdown of Sector:
Timeline of key fintech highlights
2008 – Banking authorisation regime is regulated by Legislation 2008-26 of 28 July on banking regulation
2016 – The digital forex ‘eCFA’ was introduced by the Central Financial institution of West African States with Senegal first to see it rolled out – though this initiative was ultimately dropped
2019 – Senegal Startup Invoice handed (the second nation in Africa to have after Tunisia)
Key statistics
