• The Central Bank of Guinea plans a payment system modeled on Kenya’s M-Pesa.
• The initiative aims to reduce reliance on cash and expand digital payments.
• The country’s liquidity crisis has eased but structural issues persist.

To prevent future tensions from cash shortages like those seen in recent months, the Central Bank of the Republic of Guinea (BCRG) has developed a strategy to reduce the economy’s dependence on cash in the short, medium, and long term.

The plan, presented on November 4, 2025, to the Planning, Financial Affairs, and Budget Oversight Commission of the National Transitional Council (CNT), includes a “merchant payment system inspired by models such as M-Pesa” in Kenya, developed with World Bank support. The BCRG said the goal is to “anchor electronic money in the habits of Guineans.”

Guinea currently has 11 licensed electronic money institutions (EMIs), up from six in 2024. About 26% of adults hold an electronic money account, showing progress despite lower penetration compared to other African countries.

In the short and medium term, the BCRG plans to limit cash payments and promote digital transactions among the population. In August 2025, the government announced plans to ban cash use in public administration, urging agencies to avoid cash in routine operations. In June 2025, the prime minister suspended cash payments at the Prime Minister’s Office, a measure that will gradually extend to other public bodies.

The BCRG also intends to operationalize the national payment switch to enable interoperability among banks, EMIs, microfinance institutions, payment operators, and fintechs.

According to the BCRG, the liquidity crisis has eased due to accelerated air freight deliveries of banknotes and large cash injections. In August 2025, the bank received two 20-foot containers filled with new bills worth over 1.4 trillion Guinean francs ($161 million). However, it acknowledged that these are temporary measures that do not address structural causes.

The BCRG attributed the cash crisis to several factors, including a strong public preference for cash. It reported that nearly 94% of issued banknotes never return to the banking system, remaining in private hands or the informal economy. Delays in banknote production and delivery—taking up to seven months—also worsened the situation. Additionally, large clients have become reluctant to fund their bank accounts due to anti-money laundering checks and increased use of third-party seizure notices.

The Central Bank’s strategy aims to change payment habits across Guinea. Its success will depend on rebuilding trust in the banking system, developing reliable mobile payment infrastructure, and convincing citizens to adopt new digital financial tools.