Burkina Faso has entered the digital payment era, radically transforming its Treasury. With support from the World Bank, public servants now benefit from prepaid bank cards and modernized services, reducing cash-related risks while improving the efficiency and transparency of financial transactions.
Burkinabé treasury adopts digital payments
The Burkinabé Treasury’s entry into the digital payment era marks a significant milestone for the country. Driven by the Financial Inclusion and SME Access to Finance Support Project (PAIF-PME), funded by the World Bank, the Treasury has modernized its services by integrating digital payment systems. This modernization is not just a technological upgrade; it represents a fundamental shift in Burkina Faso’s public finances.
The Treasury is now connected to the Automated Settlement Transfer System (STAR-UEMOA) and the Automated Interbank Clearing System (SICA-UEMOA). These regional payment platforms, previously reserved for banks, now enable the Treasury to process payments in less than 24 hours, compared to the three days previously required. This drastic reduction in processing times is just the first step toward the broader adoption of digital payments within the country’s public institutions.
Tangible benefits of going digital
The transition to digital payments offers multiple and immediate advantages. For example, Madame Idani, a Treasury official, recently received her per diem via a Yennenga prepaid card during an official mission to Senegal. This card, usable in all eight member states of the West African Economic and Monetary Union (UEMOA), provides increased security and unmatched convenience compared to the old system, where agents had to carry cash. In case of loss, the card can be immediately blocked, significantly reducing the risk of theft.
This prepaid card issued thanks to the Treasury’s connection to the regional interbank card system (GIM-UEMOA), marks another step toward the gradual phasing out of cash payments. Currently, these cards are mainly used for per diems, but the goal is to expand their use to other types of public payments.
Impact on financial inclusion in Burkina Faso
The shift to digital payments has positive implications for financial inclusion, a major challenge for Burkina Faso. The country, which saw a 29 % increase in the number of adults with an account between 2014 and 2017 thanks to Mobile Money, saw this figure decline to 36 % in 2021 due to the security crisis. However, the digitization of public financial services could reverse this trend by making banking services more accessible to vulnerable populations.
The project also supports the acquisition of solar-powered electronic payment terminals (TPE) for remote Treasury offices, ensuring financial services are accessible even in remote areas. The implementation of the Treasury’s integrated payment platform, which will allow transactions via Mobile Money, further strengthens this financial inclusion strategy.
Necessary but insufficient modernization
While the modernization of the Burkinabé Treasury through digital payments is undeniably a significant advancement, it is only the first step. Today, more than 4,000 retirees already receive their pensions via Mobile Money and customs duties can be paid through the eDouanes platform, launched in December 2023. However, several other government payment streams still need to be digitized.
Fully digitizing these processes could not only reduce costs for the government but also enable citizens to save significant time and money. Moreover, such an initiative would enhance the transparency and efficiency of public finances, which are crucial for the country’s economic development.
The integration of digital payments within Burkina Faso’s Treasury, supported by the World Bank, symbolizes a decisive step in the modernization of the country’s public services. Public servants now enjoy faster and more secure transactions, while the population sees its financial inclusion opportunities expand.
