Electronic Money Sector in WAEMU Sees 288% Growth in Three Years

(Ecofin Agency) - Over the past three years, the electronic money sector in the WAEMU region has seen explosive growth. Between 2021 and 2023, the value of electronic money transactions surged by 288%, rising from CFA44.2 trillion to CFA171.9 trillion. In 2023 alone, it grew by 146%. Transactions themselves doubled, reaching CFA8.78 trillion. The number of service points locations where people can deposit or withdraw money also increased by 16.4%, now exceeding 1.1 million.

This rapid expansion is driven by a critical need. In regions where banks are often unavailable, Electronic Money Establishments (EMEs) financial institutions authorized to issue, manage, and distribute electronic money have become a vital financial resource for people. Thanks to them, millions of people, particularly in rural and peri-urban areas, who were previously excluded from the banking system, now have access to basic financial services.

The number of electronic money accounts rose by 23.3% in 2023, reaching 138.1 million, and the number of active accounts followed the same trend, increasing by 13.3%. In contrast, the number of bank accounts only grew by 6.6% in 2023, reaching 20.8 million, highlighting the deeper penetration and growing adoption of digital financial services across the region.

The increase in active accounts those used for at least one transaction every three months is particularly notable, with a rise of 13.3% in 2023, reaching 52.3 million. Users are taking advantage of the convenience and accessibility offered by these services, especially for proximity payments, money transfers, and even bill payments. Bill payments, in particular, are a newer use case that now accounts for 16.3% of all transactions, while transfers from personal bank accounts and intra-WAEMU transfers still have significant growth potential.

In 2023, the sector’s revenue bounced back sharply, growing by 45.9% to reach CFA252.2 billion after a notable 23.6% drop in 2022. This rebound is largely attributed to the increase in transaction volume, driven by the entry of major players like Wave Digital Finance in Senegal and SAMA Money in Mali. However, behind these encouraging figures lies a more complex reality. EMEs collectively recorded a net deficit of CFA21.3 billion in 2023, a slight improvement from the CFA32.8 billion loss in 2022. This is partly due to the fact that many EMEs are still in a phase of heavy investment, particularly the six largest ones, which hold 55.2% of the market. In 2023 alone, their financial debts skyrocketed by more than 218%...Read more on Ecofin Agency

Source: Ecofin Agency