Senegal is one of many countries across the Middle East and Africa trying to diversify its economy and future-proof itself by hosting financial inclusion by employing fintech solutions.

Historically, Senegal’s economy has centred around agriculture, particularly peanuts. However, in recent decades, the government has engaged in efforts to diversify the economy to include other agricultural products, as well as non-agricultural sectors such as tourism and natural resources like oil, gas, and gold.

Economic, financial services and fintech overview

By 2025, the government aims to create 35,000 new jobs in the technology sector. Mobile phone usage in Senegal has surpassed 60 per cent this year. Despite this digital advancement, only seven per cent of the population utilises traditional financial services.

As a Francophone nation located in West Africa, Senegal is relatively stable and prosperous compared to some of its neighbouring countries. It is a member of the West African Economic and Monetary Union (WAEMU), and its fiscal and economic policies are influenced by this union, including foreign exchange controls.

However, Senegal remains a developing economy with significant challenges in financial inclusion, particularly in rural areas. The majority of traditional financial services infrastructure, such as ATMs and point-of-sale terminals, are concentrated in the capital city of Dakar, leaving rural areas underserved. Additionally, cash remains the preferred payment method for 56 per cent of Senegalese.

Fintech presents opportunities to address these challenges and promote financial inclusion. Mobile money, in particular, has had a significant impact, with over 70 per cent of adults in Senegal reporting its use within the last 30 days.

Stay Ahead of the Financial Trends with Our Latest FinTech News Updates! 

Source : https://thefintechtimes.com/fintech-overview-of-senegal-in-2024/