Regulatory AlertsMadagascar: fintech & payments regulation
RegulatedEMIs licensed by CSBF under Law 2016-056; 500m Ar minimum capital
- Lead regulator
- Commission de Supervision Bancaire et Financière (CSBF)
- Also involved
- Banky Foiben'i Madagasikara (IPS/Clearing) · Ministry of Economy (Microfinance)
- Core law
- Law No. 2016-056 on Electronic Money and Electronic Money Institutions
- Entry capital
- 500,000,000 Ariary (EMIs)
- Approval timeline
- 6 months (CSBF review)
- Customer assets
- Segregated in global accounts at authorized banks
- Data protection
- Law No. 2014-024 (Electronic Transactions)
- Sandbox
- No
Madagascar regulates electronic money issuance and distribution under Law No. 2016-056, supervised by the CSBF. The regime mandates a 500 million Ariary minimum capital for EMIs and requires strict governance and global account segregation. While the legal framework for EMIs is mature, broader fintech activities like open banking and standalone payment processing remain largely unregulated or fall under existing banking/microfinance laws.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | Uncertainverify with regulator No specific payment institution license; likely requires banking or EMI license | — | — | — |
| E-money & wallet issuance | LicenceElectronic Money Institution (EMI)[1][2] Mandatory capital and global account segregation required | 500,000,000 Ariary | 6 months | CSBF |
| Domestic money transfer | LicenceElectronic Money Institution (EMI)[1] Domestic transfers covered by EMI license | 500,000,000 Ariary | 6 months | CSBF |
| Cross-border remittance | LicenceElectronic Money Institution (EMI)[1] Cross-border remittance permitted under EMI license | 500,000,000 Ariary | 6 months | CSBF |
| Agent network | LicenceElectronic Money Institution (EMI)[3] Agents must be appointed by licensed EMIs | 500,000,000 Ariary | 6 months | CSBF |
| Open banking / account information | Unregulated No specific open banking framework exists | — | — | — |
| Foreign-exchange services | LicenceCurrency Exchange Office[4] Separate license for cash currency exchange | — | — | CSBF |
New — what changed recently
Market-entry checklist
- 1Secure 500m Ariary capitalEnsure minimum paid-up capital of 500 million Ariary for EMI application.
- 2Submit CSBF applicationFile comprehensive application with CSBF including governance and technical plans.
- 3Open global accountEstablish segregated global account with authorized depositary bank for customer funds.
- 4Appoint distribution agentsSelect and register agents under CSBF Instruction No. 002/2018-CSBF.
Sources
- Law No. 2016-056 on Electronic Money and Electronic Money Institutions · 2026-01-06
- Decree No. 2017-851 Implementing Law No. 2016-056 of February 2, 2017 on Electronic Money and Electronic Money Institutions · 2017-09-26
- Instruction No. 002/2018-CSBF on Electronic Money Distribution Agents · 2018-04-12
- Decision No. 016/2019 - CSBF Granting a Currency Exchange Office License in the Name of "Activa Change" to Activa SARL · 2019-12-31
- Instruction No. 001/2024-DSP of 1 October 2024 on the Operation of Madagascar's Instant Payment System · 2024-10-03
- Instruction No. 001-2025-CSBF on the Approval of Banks and Financial Institutions · 2025-04-25