The Central Bank of West African States (BCEAO) has bowed to mounting pressure from fintech companies and investors by extending a critical compliance deadline for digital payment providers in the West African Economic and Monetary Union (WAEMU), in a move that could stabilise a sector rattled by regulatory delays.
In a formal notice issued on May 27, the BCEAO announced that the transition period for compliance with its new licensing framework — known as Instruction №001–01–2024 — has been extended until August 31, 2025. The new rules, introduced in January 2024, require all digital payment service providers in WAEMU’s eight member states to obtain direct authorisation from the central bank. Originally, enforcement began on May 1, 2025, triggering widespread service disruptions.
“From September 1, 2025, only licensed entities will be permitted to offer payment services within the Union,” BCEAO Governor Jean-Claude Kassi Brou confirmed in the official notice.
A Fragile Rollout
WAEMU, which includes Senegal, Côte d’Ivoire, Mali, Burkina Faso, Togo, Benin, Niger and Guinea-Bissau, is widely viewed as one of Africa’s most promising regions for digital finance. Its single currency, common central bank and expanding mobile connectivity have made it attractive to fintechs seeking cross-border scale.
But the transition to a formalised licensing regime has proven rocky. Despite an 18-month implementation window and multiple phased deadlines, the central bank had approved only 11 Payment Institutions (PEIs) by late May — leaving hundreds of companies operating in legal limbo.
The ripple effects were immediate. In Senegal alone, over 90% of fintechs reported service interruptions after the original May 1 deadline. Payroll systems froze, digital wallets were suspended, and many small businesses reverted to cash. Startups across the region reported lost revenues, stalled partnerships, and in some cases, cancelled funding rounds.
“We’ve seen investor confidence take a hit,” said Mohamed Thiam, co-founder of HR tech firm Socium. “If this had continued unchecked, even well-capitalised players would have been at risk.”
The Pressure Mounts
The BCEAO’s extension appears to be a reluctant concession to the growing chorus of frustration from the fintech ecosystem. Startups, trade associations, the media and venture capital firms have been quietly lobbying for flexibility, citing poor communication and a lack of procedural transparency in the application process.
According to François Sène, BCEAO’s Senegal Director, the delays were due in part to incomplete documentation submitted by applicants. “We received many submissions with missing elements,” he said during a press briefing earlier this month, adding that the bank has held “regular discussions” to support compliance.
But fintech founders and industry analysts suggest a deeper structural issue.
“After nearly a year and a half, we don’t even have a dozen approvals,” said Eric-Franklin Tavares, founder of Ivorian startup Paylican. “This isn’t just about paperwork. It’s about the system not being ready to process what it mandated.”
That disconnect was on full display at the BCEAO’s recent AI and Financial Inclusion Conference in Dakar, where central bank governors from across Francophone and Lusophone Africa discussed long-term strategies for artificial intelligence. Despite the scale of fintech disruption unfolding outside the venue, the licensing crisis went unmentioned.
“There was a lot of talk about the future,” said one founder who attended the conference and asked not to be named. “But no one was addressing the present.”
A Mixed Message
So far, the BCEAO has authorised the following as licensed Payment Institutions:
Senegal
- Flutterwave Senegal SA
- Dunya Digital Payment SA
- Mikaty Senegal SA
- Bictorys SA
Côte d’Ivoire
- Julaya Côte d’Ivoire SA
- TouchPoint Financial Services SA
- SYCA SA
- Firstcom Global Payments SA
Mali
- InTouch Mali
Burkina Faso
- InTouch Burkina
Niger
- iFutur SA
These approvals, while welcome, represent only a small fraction of the fintechs operating across the WAEMU region. Many others — such as payroll processors, payment aggregators and mobile money operators — remain stuck in application backlogs.
What Comes Next?
The deadline extension offers short-term relief, but long-term uncertainty remains. Fintech operators now have until August 31, 2025 to secure BCEAO approval. After that, enforcement will resume — and this time, the regulator is unlikely to grant further leniency.
“This is a temporary reprieve, not a policy shift,” said one regional investor, who asked to remain anonymous. “The signal is that compliance is non-negotiable — but the BCEAO understands it must be achievable.”
The licensing regime, if executed effectively, could usher in a more stable and accountable fintech sector. By aligning WAEMU with global regulatory norms, the BCEAO framework aims to protect consumers, mitigate systemic risks, and attract long-term capital.
But the central bank’s ability to scale its regulatory operations — and communicate transparently — will determine whether the region becomes a fintech growth engine or a cautionary tale.
Launch Base Africa, a media and data platform focused on African tech and which extensively covered the story, describes the development as one of the most closely followed issues on its platform in the region during the month of May. It welcomes the extension, urging all pending applicants to use the additional time to rectify compliance gaps and strengthen governance frameworks.
“This is the moment to double down on licensing efforts,” the platform states in a statement. “A clear path is now in place.”
For now, West Africa’s fintech sector remains suspended between two futures: one shaped by digital innovation, and another shadowed by bureaucratic inertia. The next move belongs to the BCEAO.