Banking in Burkina Faso: Current situation and prospects from 2023 to 2030

Abstract

The banking rate in Burkina Faso is approximately 21% and the rates of use of microfinance and overall services are respectively 20% and 41.29%. This performance despite Law No. 003-2005 of March 24, 2005 establishing a uniform law on measures to promote banking and the use of cashless means of payment in Burkina Faso. However, according to the report from the West African Economic and Monetary Union (UEMOA), this rate was 23.2% in 2014. Hence a downward trend.

Why is the banking rate slow to increase and what are the endogenous and exogenous factors that are the cause of this delay in Burkina Faso? Also, what can be the prospects for 2030?

These are answers to as many questions as this article has attempted to provide through the administration of a questionnaire to 127 people; in a constructivist epistemological approach. Indeed, there are indeed endogenous and exogenous factors in populations which hinder banking use.

In short, the banking rate is slow to increase in Burkina Faso mainly because of factors endogenous to the populations (insufficient income, clan (cultural), illiteracy) to the tune of 84.40% compared to 15.60% for exogenous factors (bad reputation of banks, insecurity and high cost of living, etc.). After the inventory, the respondents made suggestions which could bring the banking rate by 2030 to 82.50%