ARTICLE 01 – The legal framework for microfinance in the WAEMU: clear objectives for a structured sector
Within the West African Economic and Monetary Union (WAEMU), the harmonious development of the microfinance sector relies on a well-defined legal framework established by the Central Bank of West African States. This framework is based on the law regulating microfinance institutions in order to guarantee both the sector's stability and the protection of economic actors.
Three fundamental objectives
According to the explanatory memorandum of the regulatory text, the legal framework governing microfinance in the WAEMU pursues three main objectives:
A structuring framework for high-performing institutions
This legal framework goes beyond simply setting technical rules; it reflects a regional vision that recognizes microfinance as a strategic driver of economic and social development within the WAEMU region. By defining common rules applicable in the eight member states (Benin, Burkina Faso, Côte d'Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo), it creates a coherent and protective regulatory environment, conducive to stakeholder confidence and the sector's sustainable growth.
Regulation in the service of inclusion
At the core of this approach, the protection of consumers and the stability of institutions occupy a central place, as they ensure that customers, often the most vulnerable, can save and borrow in a safe and regulated environment.
In addition, this framework helps to increase the attractiveness of the sector, encourage innovation and provide a solid basis for future regulatory advances, particularly around digitalization, sustainable finance and the ecological and social transition.
Source: BCEAO – Objectives of the legal framework governing microfinance in the WAEMU.
ARTICLE 02 – Ecological and Social Transition: Growing commitment of African MFIs in the context of partnership and financing challenges
Across the African continent, MFIs are showing a growing interest in integrating the Ecological and Social Transition (EST) into their strategic orientations and operational practices. This development is taking place in a context where the effects of climate change are intensifying, social vulnerabilities persist, and the populations supported by MFIs are often the first to be exposed to environmental and economic shocks.
Historically focused on providing access to credit and savings for populations excluded from the traditional banking system, MFIs are now recognizing that their mission of financial inclusion cannot be separated from environmental and social issues. Client resilience to climate risks, the sustainability of financed activities, and the protection of beneficiaries are becoming central concerns. This awareness is gradually translating into a desire to adapt financial products, integrate environmental considerations into credit analysis, and strengthen client protection mechanisms.
However, while the commitment is genuine, implementation remains complex. The effective integration of the EST requires an internal transformation that goes far beyond adding a new product or a one-off awareness campaign. It involves changes in skills, management tools, risk assessment mechanisms, and sometimes even business models. Many MFIs therefore express a growing need for technical support to structure their approach, formalize their internal policies, and develop tools tailored to their specific context.
In addition to these technical challenges, there is a major constraint: access to appropriate financing. Projects related to the ecological transition often require long-term resources, suitable financial terms, and risk-sharing mechanisms. However, African MFIs struggle to mobilize this type of funding. Donor requirements regarding environmental and social reporting, the complexity of international standards, and the need to present sufficiently structured projects to attract impact investors are all obstacles. Many institutions have relevant ideas and initiatives but struggle to transform them into bankable projects capable of attracting dedicated resources.
Seeking partnerships then becomes a strategic lever. In order to move forward with the implementation of the EST, MFIs must establish partnerships with specialized funds, cooperation agencies, technical organizations, or guarantee mechanisms. These partnerships not only allow them to mobilize financing but also strengthen their institutional credibility and access complementary expertise. However, identifying and negotiating such partnerships requires time, specific skills, and a capacity for coordination that not all institutions yet fully possess.
The integration of the EST represents a major opportunity to reposition African microfinance as a key driver of sustainable development. It offers the possibility of balancing financial inclusion, climate resilience, and increased social impact. However, for this momentum to translate into tangible and lasting results, a favorable environment must be consolidated. This requires capacity building, improved structuring of financing mechanisms, and a collective dynamic involving professional networks, technical partners, and donors.
EST is no longer a bordering option for African microfinance institutions; it is gradually becoming an essential strategic focus. The challenge now lies in translating ambition into concrete actions and removing the constraints that still hinder its large-scale deployment.
ARTICLE 03 – A unique and pioneering collaboration: AFD and MAIN join forces for inclusive finance in support of ecological and social transition in Africa
In a context where climate and social challenges are redefining development priorities in Africa, strategic alliances are becoming a crucial lever for accelerating the necessary transformations. It is within this dynamic that the collaboration between the French Development Agency (AFD), Fondation Terre Solidaire (FTS), and MAIN was born around the project "Inclusive Finance in Service of the Ecological and Social Transition in Africa."
Building on an approach initiated in 2017 to strengthen the role of African microfinance institutions in addressing climate change, this initiative marks a significant step in the sector's evolution. It represents a unique and pioneering approach on a continental level, systematically linking inclusive finance with the challenges of ecological and social transition, while positioning MFIs at the center of the system.
A shared vision for sustainable inclusive finance
AFD, a major actor in financing of development, and MAIN, a pan-African network of microfinance institutions, share a common conviction: ecological and social transition cannot be effective without the involvement of inclusive finance players. Due to their proximity to vulnerable populations, MFIs play a decisive role in supporting households and microentrepreneurs in adopting more resilient and sustainable practices.
This partnership is not simply about financing a project, but about structuring a dynamic of transformation within the sector. The objective is to encourage MFIs to progressively integrate EST principles into their strategies, financial products, governance, and operational practices, thereby strengthening their social impact while consolidating their institutional sustainability.
A strategic partner for MAIN
For MAIN, AFD represents a major partner, both through its technical expertise, its financing capacity, and its strategic vision for sustainable development. This partnership has enabled a decisive step forward in recognizing the role of professional microfinance networks in promoting the ecological and social transition.
Beyond financial support, the collaboration with AFD strengthens MAIN's institutional credibility and allows it to position itself as a key regional actor in supporting MFIs on sustainability issues. It also paves the way for new synergies and complementary partnerships, demonstrating the relevance of an integrated approach linking inclusive finance and transition.
A model for collaboration worth following
The collaboration between AFD, FTS, and MAIN is a concrete example of a strategic partnership serving the sustainability of inclusive finance in Africa. It illustrates the need to link financing, capacity building, and institutional support to generate a lasting impact.
In an environment where MFIs face increasing challenges (governance, risk management, portfolio quality, savings mobilization, and climate change adaptation, etc.), the support of committed partners is essential. This type of collaboration demonstrates that it is possible to build financing and support mechanisms tailored to local realities while meeting international sustainable development standards.
Towards a structural transformation of the sector
By supporting the project "Inclusive Finance for Ecological and Social Transition in Africa," AFD, FTS, and MAIN are helping to lay the foundations for a structural transformation of the microfinance sector. The aim is to establish EST as a long-term, essential strategic priority, rather than a one-off or temporary initiative.
This experience demonstrates that cooperation based on trust, a shared vision, and a long-term commitment can be a catalyst for change. It serves as a benchmark for other technical and financial partners seeking to support more resilient, responsible, and inclusive finance aligned with the continent's climate and social challenges.
Through this collaboration, MAIN, FTS and AFD are sending a strong signal: EST in Africa will also involve sustainable microfinance, structured and supported by ambitious partnerships and actors committed to the cause of a just, equitable and social transition.
