UEMOA: 4 approved microfinance institutions for Islamic finance in 2025
Islamic finance continues to gain ground in the West African Economic and Monetary Union, supported by licenses issued by the Central Bank of West African States. The number of institutions authorized to operate in this sector rose from two in 2018 to 21 by the end of 2025, according to the BCEAO’s 2025 annual report.
SUMMARY
Four microfinance institutions obtained a license in 2025 to operate Islamic finance activities within the UEMOA. Among them, two are authorized to operate exclusively in this field, as specified in the document published on July 22.
These licenses reflect the gradual expansion of the regulatory framework dedicated to financial services compliant with Islamic finance principles. They allow new players to offer products tailored to clients seeking financing solutions based on these rules.
The progress recorded since 2018 occurs in a community space where monetary authorities are seeking to strengthen access to financial services. The increase in the number of licensed institutions also reflects the growing interest of microfinance establishments in this segment.
A Regional Framework in Preparation
The BCEAO is now preparing to set up a Regional Compliance Council dedicated to Islamic finance. This body is expected to help strengthen the consistency and supervision of practices applied in the various UEMOA countries.
The future council should assist authorities and institutions in reviewing the compliance of products and operations offered to clients. Its creation is part of the aim to consolidate the regional framework applicable to this activity.
With 21 institutions authorized by the end of 2025, Islamic finance now has a more established presence in the Union. The licenses granted to microfinance institutions complement the framework already put in place by other entities authorized to operate in this market.
The BCEAO thus continues to regulate a sector that has rapidly developed since 2018. The announced establishment of a Regional Compliance Council is set to be a new step in this evolution within the West African space.
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