Senegal has rolled out a 0.5% tax on mobile money transactions as part of a broader effort to shore up public finances in an increasingly digital economy. The levy applies to transfers, payments, and withdrawals conducted via mobile wallets. To limit the burden on users, the tax is capped at 2,000 CFA francs (about €3.05) per transaction, with exemptions covering small withdrawals, salary payments, scholarships, and certain low-value operations.
The decision comes amid mounting fiscal strain, with public debt estimated at around 118% of GDP at the end of 2024. Authorities have positioned the tax as a tool to increase domestic revenue and reduce dependence on external financing. When combined with other levies on electronic financial transactions, the measure is expected to generate approximately 230 billion CFA francs over three years. These resources are earmarked for the 2025–2028 Economic and Social Recovery Plan, a core pillar of the “Senegal 2050” National Transformation Agenda, which carries a total budget of 5,667 billion CFA francs (roughly $10 billion).
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As Senegal’s economy continues to digitalize, mobile money has become deeply embedded in everyday life, supporting payments, remittances, and small-business activity. While the new tax aligns with the government’s objective of broadening the tax base, it has sparked concern among users and industry stakeholders. Online gamblers, already subject to a 20% tax on winnings, now face additional transaction costs. Critics contend that higher transaction costs could increase the cost of living, erode household purchasing power, and encourage informal economic actors to revert to cash-based transactions.
This debate comes against the backdrop of rapid sectoral growth. According to a GSMA’s report, registered mobile money accounts expanded from 7 million in 2013 to 38 million in 2023, while transaction volumes increased by roughly 3.3 times, reaching USD 230 million. The GSMA estimates that mobile money added around USD 6 billion to Senegal’s GDP in 2023, with per capita GDP linked to mobile financial services rising sharply over the decade.
There are also questions about how the measure fits with ongoing regional payment reforms led by the BCEAO, including the PI-SPI interoperable instant payment system introduced last September. Higher costs at the transaction level could slow the transition toward these shared platforms, even as regional authorities promote them as essential infrastructure for cross-border integration and long-term growth.
