Mauritania Takes Major Step Towards Financial Inclusion with Adoption of E-Payment Regulatory Framework

In a significant milestone for the country’s financial inclusion journey, the Mauritanian Parliament has adopted a long-awaited regulatory framework for electronic payment services.

Expanding Access to Digital Financial Services

The new law aims to expand access to digital financial services, making low-value, transactional payment services more accessible to the majority of the population. This is particularly important in Mauritania, where approximately 20 percent of adults have financial accounts, with mobile money accounts reaching only four percent of the adult population.

Addressing Gender Gap

The gender gap in financial access is also a significant five percentage points, meaning women are less likely to be served than men. The adoption of this regulatory framework is expected to help bridge this gap and ensure that marginalized groups can access formal financial services.

Central Bank’s Instrumental Role

The Central Bank of Mauritania (CBM) has been instrumental in guiding the process, working closely with international development partners and the Policy Accelerator team. The latter provided technical assistance and support throughout the adoption process.

Background and Process

In July 2019, the Policy Accelerator attended a workshop on market stakeholders to discuss the design of the National Financial Inclusion Strategy (NFIS). Following this, the CBM expressed interest in receiving support from the Policy Accelerator for revising its e-money regulatory framework. A diagnostic mission was conducted in December 2019 to understand the market context and regulatory objectives.

Report Recommendations

The report presented to the CBM considered good practices in regulating digital financial services and provided insights from extensive consultation with local stakeholders, including banks, microfinance institutions, telecom operators, and others. The analysis aligned with contributions from other CBM partners, such as the World Bank and Alliance for Financial Inclusion (AFI).

Support Provided by Policy Accelerator

Between January and October 2020, the Policy Accelerator team supported the CBM in reviewing the draft law on e-payments services and provided feedback on temporary instructions related to mobile payment services. The team also provided capacity-building training scholarships for CBM officials to deepen their understanding of digital financial services and inclusive finance.

Impact on Financial Inclusion

The adoption of the new regulatory framework marks a turning point in ensuring marginalized groups can access formal financial services in Mauritania. It will enable new actors to provide digital financial services, launch new products, and develop strategies for meeting the financial needs of two million people excluded from the formal financial sector.

Expected Impact on Financial Inclusion

This development is expected to have a significant impact on financial inclusion in Mauritania, improving access to financial services and increasing opportunities for economic growth and development.