• Government approves plan to convert Postefinances into a postal bank by 2029
• New bank will include private capital and target 6m unbanked adults
• Project comes as La Poste faces heavy financial, social, and operational crisis

The Senegalese government has decided to transform Postefinances, the financial arm of state-owned SN La Poste, into a postal bank by 2029. The decision was made at an interministerial council held on September 1, 2025, to discuss the future of La Poste.

The new bank will include private shareholders and focus on providing affordable financial services to expand access in a country where nearly 6 million adults remain excluded from banks or other formal financial institutions, according to the World Bank.

Prime Minister Ousmane Sonko has tasked the ministers of Communication, Telecommunications and Digital Affairs, Finance, and Budget to prepare a clear and sustainable roadmap by November 2025. The plan must outline the technical, regulatory, and financial steps required to complete the transformation.

Reforms before launch

Ahead of the postal bank’s creation, the government aims to resolve a key issue: rebuilding Postefinances’ third-party funds, meaning money deposited by individuals, businesses, and institutions. These deposits showed a deficit of more than CFA9 billion ($16 million) at the end of 2024, undermining client confidence.

At the same time, the government wants to diversify La Poste’s activities. Plans include creating a national electronic messaging service to provide every citizen with a secure official email address, and positioning La Poste in complementary services such as insurance brokerage.

A company in deep crisis

The move comes as SN La Poste faces a decade-long financial and operational crisis. By the end of 2024, cumulative losses exceeded CFA100 billion, equity showed a deficit of CFA156 billion, and debt levels had become critical, spanning tax, social, banking, and supplier arrears.

Subsidiaries are also struggling. Postefinances itself has negative equity of more than CFA17 billion and has been hit by documented fraud of over CFA3 billion. EMS Senegal, its express courier unit, has lost key markets and seen revenues decline.

More than 80% of La Poste’s vehicles are out of service, crippling mail delivery and logistics, both essential for e-commerce growth. Since October 2022, the state has also been paying employee salaries at an annual cost of CFA18 billion.

The postal bank project is seen as a strategic attempt to revive La Poste, but success will depend on fixing its financial imbalances and modernizing governance.