The eight-member bloc of the West African Economic and Monetary Union (WAEMU) is set to transform the region’s financial system with the introduction of instant payments, paving the way for a Central Bank Digital Currency (CBDC). On September 30, the monetary union – comprising Benin, Burkina Faso, Côte D’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo – will introduce the Interoperable Instant Payment System Platform (PI-SPI), which will enable real-time transfers between banks, mobile money operators, and microfinance companies.
PI-SPI is designed to modernize payments, strengthen monetary sovereignty and expand financial inclusion across the WAEMU region. It is also part of an overall digital strategy that includes the launch of the e-CFA, a retail CBDC being developed by the Central Bank of West African States (BCEAO).
The eight countries already share a common currency, the CFA franc, which is overseen by the BCEAO and provides the foundation for a single monetary framework on which to build digital payment reforms and the e-CFA. While no date has been set to introduce the e-CFA into the monetary system, the BCEAO has said that the digital currency will be legally guaranteed and equivalent in value to the CFA franc.
According to the World Bank, the macroeconomic backdrop is favourable for digitalising the bloc’s financial system. WAEMU’s economic growth is expected to reach 6% by 2027, boosted by Côte D’Ivoire, Niger, and Senegal, World Bank data shows.
Sovereignty and Strategy
The BCEAO aims to strengthen WAEMU’s monetary sovereignty in a digital environment through the e-CFA, foster innovation in financial services, reduce the use of cash in the informal sector, and combat money laundering. In West Africa, the informal sector accounts for between 30% and 50% of gross domestic product, and for 60% to more than 90% of total employment, according to a 2024 report by the United Nations Economic Commission for Africa.
A multidisciplinary working group has been set up to assess the costs and benefits of a retail CBDC, including proof-of-concept testing to gauge technological feasibility, use cases, and risk management.
“The next step is to continue the study through a proof-of-concept phase with a view to understanding the technological challenges, testing the feasibility of the use cases identified for the union, measuring the associated benefits and costs, and assessing the effectiveness of the risk control measures envisaged,” the BCEAO says in its 2024 annual report.
Payments infrastructure
According to a report by the World Bank, the BCEAO has spent the past few years laying the groundwork for a digital financial system, including the adoption of a national Financial Inclusion Strategy by all eight WAEMU-member countries. It has also developed a regulatory framework for the issuance of e-money and updated its banking law to enable the regulation of new payment services providers. The WAEMU now has 40 e-money initiatives, including 13 licenses granted to private companies and 27 bank-telecom partnerships, the Washington-based institution says.
However, before it can introduce the e-CFA, the BCEAO is focusing on building digital infrastructure, including the new PI-SPI system, which enables secure, real-time 24/7 payments regardless of account type. Testing of the system began in June 2025 with a select group of clients to assess speed, resiliency, and security before this month’s launch.
“Designed in compliance with international standards for payment systems, the PI-SPI platform offers a high level of security, resilience and operational performance,” the BCEAO says in the annual report.
“Its gradual deployment will represent a major step forward in the modernization of payment infrastructures, while promoting financial inclusion and accelerating the digitalization of transactions in the union,” it adds.
Risks and concerns around the e-CFA
Despite the numerous benefits of a CBDC, the BCEAO has been actively addressing several concerns after a working group identified challenges associated with issuing the e-CFA in the monetary bloc. However, its biggest concern is financial disintermediation.
“Any economic agent will be able to hold digital central bank currency directly issued by the central bank, without going through traditional banking channels,” the BCEAO says in the annual report.
“This innovation could potentially destabilize models based on deposit capture, flow management, and transfer margins.”
Scope is another constraint, as the e-CFA would initially be limited to regional transactions rather than international transfers.
Driving adoption and financial inclusion through instant payments
The adoption of the e-CFA will depend on a number of factors, including universal acceptance, how simple it is to use, and strong engagement across the financial ecosystem, particularly from banks, microfinance firms, merchants, and mobile money providers.
Financial inclusion across the WAEMU jumped from 47% in 2016 to 72.3% in 2023, according to the BCEAO. Meanwhile, the World Bank notes that 26 million unbanked adults across the WAEMU region have a mobile phone, a key component for mobile money account ownership.
Extending the reach of digital money into rural areas will require overcoming persistent hurdles, from patchy connectivity to unreliable electricity connections and high illiteracy rates. A May 2025 report by ODI Global, a UK-based think tank, highlights that offline functionality is critical for the success of a CBDC.
“Offline functionality can mitigate the challenges of unreliable internet connectivity and electricity access, directly targeting the financially excluded,” ODI Global says.
“By enabling real-time, low-cost and traceable transactions, CBDCs can significantly reduce settlement risks and costs, while increasing transparency across the financial ecosystem,” it adds.
Conclusion
The launch of instant payments through the PI-SPI system marks a turning point for WAEMU’s financial ecosystem, laying the foundation for instant digital payments, financial inclusion, and a potential digital currency.
However, the experience of other central banks in Africa is worth noting. Nigeria was the first country in Africa to launch a retail CBDC, the eNaira, in 2021. Since then, the project has struggled to gain traction, with adoption extremely low amid minimal transaction volumes, while most e-wallets are inactive.
In contrast, Ghana successfully focused on offline functionality to extend its eCedi pilot into remote communities to promote financial inclusion. Despite a two-year delay, the country plans to officially launch the CBDC by the end of 2025.
Nigeria and Ghana’s experiences highlight the importance of a gradual rollout supported by strong infrastructure and inclusive design. If handled correctly, the BCEAO’s instant payment platform and e-CFA initiative could set a benchmark for the future of digital money across the continent, potentially transforming how millions manage their money.
For more insights on digital finance initiatives shaping Africa’s future, visit Open Finance Africa