Burkina Faso/Finance: Regulation of the microfinance sector, the Government in its ongoing quest to facilitate the financing of initiatives
To enable all socioeconomic groups to effectively contribute to the economic and social development of Burkina Faso, the authorities continually implement appropriate measures to foster various initiatives. Among these measures is the facilitation of access to financing.
Accessing funding from banks and financial institutions for the implementation of projects and economic activities has been a challenge for the population and small businesses. Under the leadership of President Ibrahim Traoré, the government is exploring multiple alternatives. In addition to establishing financial institutions such as the Postal Bank of Burkina Faso and the Treasury Deposit Bank, the authorities aim to enhance the microfinance sector.
This sector, which plays a crucial role in financing the activities of the population, faces challenges that the Burkinabe authorities seek to address. The adoption of the bill regulating microfinance in Burkina Faso during the Council of Ministers on Wednesday, October 30, aligns with this effort, aiming to enable the sector to fulfill its role in savings and financing effectively.
Key innovations introduced in this bill include strengthening the governance of microfinance institutions, clarifying the roles and responsibilities of supervisory authorities, establishing a minimum capital requirement, and expanding the activities permitted for microfinance institutions.
Once validated by the Transition Legislative Assembly (ALT), this bill will provide Burkina Faso with a legal framework that adapts to the evolving social, economic, and financial environment as well as to international standards.
