GIMAC and PayLogic: Fostering Central Africa’s Digital Payments Revolution

In a groundbreaking move, six Central African countries have added mobile transactions to their common financial services and payment methods. This milestone has been achieved through the concerted efforts of the Central African Economic and Monetary Community (CEMAC) and PayLogic, the Moroccan provider of payment technology solutions. The mobile switch, which integrates 11 telecom operators and 54 banks and payment institutions, demonstrates the commitment to breaking down barriers in Africa’s monetary networks, despite the challenges brought about by the global pandemic.

Since early June, a Wallet has been fully operational in the CEMAC economic zone, covering Cameroon, Gabon, Equatorial Guinea, Congo-Brazzaville, the Central African Republic, and Chad. Bank cardholders, mobile payment account holders, and users of payment systems and means can now execute payment transactions and fund transfers within the region at reduced costs, without the need for physical presence or cash handling. This major technological advancement, linking a whole ecosystem of operators and facilitated end-to-end by the Central African Monetary Group (GIMAC) and PayLogic, spans 35 countries in Africa and the Middle East.

“The challenge is to be able to serve the widest possible segment of the region’s population, and the only access to these services can be mobile. The mobile penetration rate is much higher than that of traditional banking. GIMAC and PayLogic have thus combined their efforts to achieve Africa’s first interoperable regional Switch,” says Mohamed Mekouar, CEO of PayLogic.

Before the mobile Switch launch, GIMAC, in partnership with PayLogic, had implemented an interbank switch based on the bank card in 2014, which was limited to banks and microfinance. The progressive deployment of new payment methods began this year. One of the fundamental aspects of the platform provided by the Moroccan provider is the inclusion of all financial operators beyond the traditional banking system, particularly telecom operators, who dramatically increase the number of end-users through their substantial customer bases.

It’s worth noting that of the 400 million active mobile accounts in sub-Saharan Africa, less than one in ten is located in Central Africa (CEMAC and DRC), even though the sub-region accounts for 13% of the African population. The use of mobile money has been particularly strong in Gabon but remains more modest in other countries of the region: 16% of the adult population in the Democratic Republic of Congo (DRC), 15% in Cameroon and Chad, and 6% in Congo.

In a recent interview, Mekouar shared his excitement about the successful implementation of the mobile Switch. He praised BEAC (Bank of Central African States) for accelerating the project by establishing a regulatory framework requiring all operators to integrate into this ecosystem. He expressed optimism about replicating this African first success in other regions and continents.

Furthermore, he explained PayLogic’s future plans to support African regulators in their financial inclusion strategies. Their services include the design and production of technological platforms enabling multichannel, traceability, and multi-operator interconnection, among others. With a focus on improving infrastructure, opening up to diverse Fintech services, and densifying flows on interoperability platforms, the company is all set to make significant strides in the coming years.

This collaborative achievement by GIMAC and PayLogic sets a high bar for financial inclusivity and the future of digital payments in Africa. It also underscores the potential of participating financial institutions to drive innovative, value-added projects that can have a transformative impact on the African continent.