SENEGAL FAST FACTS KEY INSIGHTS DATA DEEP DIVE INDEXES PRICING OPERATORS CONCLUSION

FAST FACTS


VOLUME OF REMITTANCES
USD 2,218 million
Senegalese Ministry of Finance
AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
4.8%
Remitscope Research, 2020
TOP 5 COUNTRIES

VOLUME OF REMITTANCES
USD 2,218 million

Remitscope Research, 2020


AVERAGE PRICE OF REMITTANCES TO SEND 200 USD
4.8%

Remitscope Research, 2020


TOP 5 COUNTRIES


FINANCIAL INCLUSION
42% of adults have an account at a financial institution, incl. Mobile money
FINDEX, 2017
NUMBER OF OPERATORS
sending to:
22
COMPETITIVE MARKET

Remitscope Research, 2020
paying out:
39

Remitscope Research, 2020

FINANCIAL INCLUSION
42% of adults have an account at a financial institution, incl. Mobile money

FINXED, 2017


NUMBER OF OPERATORS
sending to: 22
*COMPETITIVE MARKET

Remitscope Research, 2020

paying out: 39

Remitscope Research, 2020


KEY INSIGHTS

ACCOUNTS & DIGITAL PAYMENTS

Less than 5% of international remittances terminate into mobile wallets.

While mobile money becomes prevalent with 32% of the adult population owning a mobile money account, it is estimated that not more than 5% of the US$ 2.2 billion inbound remittances are received through a mobile money account.


International digital transfers and the use of transactional accounts linked to payment and banking services would increase financial inclusion as well as the resilience of remittance beneficiaries to financial shocks.

01

02
DOMESTIC PAYMENT INFRASTRUCTURE

To remove the need to cash-out remittances, the digital payments ecosystem needs to be improved

Senegal’s national payment system is fragmented and is not currently truly interoperable, which limits the use of electronic payments and limits the benefits of receiving money digitally. Digital account users usually end up needing to cash out in order to pay for their goods and services.


End-to-end digital transfer services combined with an electronic payment ecosystem that avoids the need to withdraw and pay in cash will be essential for reducing the need for agents and lowering costs. This requires an interoperable, inclusive and competitive payment system.


03
LICENSING & REGULATORY ENVIRONMENT

Clear and open regulations, but with opportunities to improve access

Senegal’s regulatory environment is open and relatively clear. There are still opportunities to stimulate competition and improve access by adapting conditions and methods of KYC to the realities of the population (especially rural populations) to open low risk electronic accounts.


Conditions under which EMEs can distribute international remittances outside WAEMU would benefit from being more explicit, to facilitate development of partnerships and digitalization of transfers.


Agents can be more pivotal by extending the scope of services they are permitted to deliver.

DATA DEEP DIVE



LINKS TO KEY REMITTANCE REGULATIONS

Senegal, through the BCEAO, provides guidance for international remittances operators. Banks, MFIs, and FX Bureaus are eligible for licensing through the Ministry of Finance and other businesses can act as their sub-agents

INDEXES





IMPORTANCE OF
REMITTANCES

01
score
1 Senegal 84
2 Nigeria 71.5
9 Togo 58
17 Cote d'Ivoire 22.5
18 Nambia 14.5

DIGITAL
READINESS

02
score
1 Kenya 100
9 Cote d'Ivoire 68
10 Senegal 68
11 Benin 64
18 Gambia 8

MARKET
OPENNESS

03
score
1 Gambia 95
2 Cote d'Ivoire 94
3 Senegal 94
4 Kenya 88
18 Sudan 6



What do these numbers mean ?



IMPORTANCE OF REMITTANCES


This is a composite score that reflects the size of formal remittance flows to the receive country, how important these are to the country's economy and, (at household level) the proportion that receive money from overseas (including informal). Weights are applied by experts. Scores out of 100. 


DIGITAL READINESS


This is a composite score that reflects how ready a country is for international remittances to be terminated directly into digital accounts (including bank account and/or mobile money (MM)).  The Index includes whether the regulation permits money to be received into mobile wallets, account ownership and whether there is domestic MM interoperability. Weights are applied by experts. Scores out of 100.


MARKET OPENNESS


A composite score that reflects where barriers to entry/operate are low for different types of market players. Factors include: lack of specific guidance for RSPs; existence of exclusivity practices; if there is a significant parallel FX market; the numbers of operators sending to a country and international remittance payment aggregators present. Weights are applied by experts. Scores out of 100. 



For more information on how the indexes were calculated please download our methodology.


PRICING

SENEGAL IS RELATIVELY CLOSE TO ACHIEVING SDG GOAL 10.c

At 4.8% of the send amount, Senegal is one of the lowest cost places to send to globally, and lower than the global average, according to RPW Q2 2020, of 6.7%. Sending the equivalent of USD 200 to Senegal is also cheaper than the African and West Africa averages. Much of this is due to the low costs from France and other Euro-Zone countries, to which Senegal’s currency, the Franc CFA, is pegged.

AVERAGE COST TO SEND EQUIVALENT OF USD200 BY TOP 5 CORRIDORS

Euro-Zone countries make up 3 out of 5 of Senegal’s top send corridors, all are close to the SDG 10.c goal of 3% average costs. One operator in France charges as low as 0.7% of the send amount. USA (Senegal’s 5th largest send market) was the most expensive market surveyed. The low cost of sending from the Gambia likely reflects an attempt to compete with the informal market, prevalent in this corridor given the countries’ proximity.

AVERAGE COST BY METHOD TO SEND EQUIVALENT OF USD200 TO SENEGAL

While the overall average cost of sending to Senegal in the corridors surveyed remains relatively cheap, the cheapest services seem to be the ones that mix cash and digital at either end, for example, card to cash. Services that are strictly cash-to-cash or end-to-end digital – many of which overlap, tend to be pricier than the average.

LIST OF OPERATORS

Operators sending to Senegal (22)

AfriCash
Azimo
BancoPosta (Italitan Post)
Boss Revolution
Extrabanca
La Banque Postale (France)
MoneyExpress
MoneyGram
Orange Money
RapidTransfer
Remitly
Ria
Small World
TapTap Send
Transfer Remittance
Transferwise
Wari
Western Union
Wizall Money
World Remit
Xpress Money
YUP

Operators Paying Out (39)

ACEP
ATPS
Bank of Africa - Senegal (BOA - SENEGAL)
Banque Atlantique Sénégal (Banque Atlantique)
Banque De Dakar
Banque de L’habitat du Sénégal (BHS)
Banque des Institutions Mutualistes d’Afrique De L’ouest (BIMAO)
Banque Internationale Pour Le Commerce Et L’industrie Du Sénégal (BICIS)
Banque Islamique du Sénégal (BIS)
Banque Nationale pour pe Développement Economique (BNDE)
Banque Régionale de Marches (BRM)
BAOBAB
BGFIBANK Senegal
BSIC - SENEGAL
CAURIE MF
CBAO, Groupe Attijariwafa Bank
Citibank Senegal
CMS
COFINA
Coris Bank International - Senegal (CBI-Senegal)
Credit du Senegal (CDS)
Credit International (CI)
Crédit solidaire d'Afrique
Ecobank - Senegal
International Commercial Bank - Senegal (ICB - Senegal)
In-touch
La Banque Agricole (LBA)
La Banque Outarde (LBO)
La Financière de L’Afrique de l'Ouest (FINAO)
La Poste Sénégal
MEC - FEMUNI
Orange Money
PAMECAS
Societe Generale Senegal (SGBS)
UIMCEC
United Bank for Africa Senegal (UBA Senegal)
Wafacash West Africa
Wari
Wizall Money

Aggregators (3)

MFS Africa
TerraPay
Thunes

FINAL THOUGHTS

A GROWING DIGITAL REMITTANCE MARKET

Costs of sending remittances to Senegal, particularly from the EU, are low and remittance regulations within the country are open and clear. However, the digital payment ecosystem is fragmented, and electronic money payment services are not integrated. The use of digital accounts for receiving international remittances remains limited despite the development of mobile money at a domestic level.


Senegal is one of the pilot countries chosen for PRIME Africa. As such, a full diagnostic report and a shorter factsheet have been developed and presented to key stakeholders in the country. The diagnostic details all aspects of the remittance market, including key players, stakeholders, and recommendations. The factsheet provides a high-level digest of the key factors. Both documents are in French.