Regulatory AlertsMadagascar: lending & credit regulation
RegulatedMadagascar: Regulated banking/microfinance via CSBF; no specific fintech lending license
- Lead regulator
- Commission de Supervision Bancaire et Financière (CSBF)
- Also involved
- Ministry of Economy and Finance (microfinance policy) · Ministry of Justice (commercial registration)
- Core law
- Law No. 2020-011 on Banking Law
- Entry capital
- —
- Approval timeline
- —
- Customer assets
- Licensed entity only
- Data protection
- Law No. 2017-045 (CIBs) · Law No. 2019-015 (Data Protection)
- Sandbox
- No
Madagascar strictly regulates credit activities under the central bank's (BFM) supervisory arm, the CSBF. The 2020 Banking Law provides the overarching framework for credit institutions and financial services. Microfinance is a distinct, heavily supervised sector with specific legal forms and operational mandates. Traditional lending requires banking or microfinance authorization, while digital lending models lack explicit standalone regulatory categories.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | Licence[1] Requires banking or microfinance license | — | — | CSBF |
| SME / commercial lending | Licence[1] Requires banking or microfinance license | — | — | CSBF |
| Microfinance | LicenceMicrofinance Institution[2] Strict governance and capital rules apply | — | — | CSBF |
| Buy-now-pay-later | Uncertainverify with regulator No specific BNPL regime identified | — | — | — |
| P2P lending platform | Uncertainverify with regulator No specific P2P lending regime identified | — | — | — |
| Credit bureau / scoring | LicenceCredit Information Bureau[3] Requires central bank approval | — | — | CSBF |
| Debt collection | Uncertainverify with regulator No specific debt collection license identified | — | — | — |
New — what changed recently
- 2024-02-01Instruction No. 001/2024-CSBF — Established strict refinancing eligibility criteria for microfinance institutions.[4]
- 2021-03-01Law No. 2020-011 — Enacted comprehensive banking law regulating credit institutions and services.[1]
- 2021-03-01Instruction No. 001-DDI/2021 — Set mandatory approval procedures for Credit Information Bureau tariff grids.[5]
Market-entry checklist
- 1Determine entity typeChoose between banking license or microfinance institution status under Law 2020-011.
- 2Register with Trade RegisterComplete legal incorporation and registration with the Trade and Companies Register.
- 3Apply to CSBFSubmit authorization application to the Banking and Financial Supervision Commission.
- 4Establish GovernanceImplement mandatory control structures and board composition per CSBF instructions.
- 5Connect to Risk CentralIntegrate with the central bank's Risk Central system for credit data reporting.
Sources
- Law No. 2020-011 on Banking Law · 2021-03-11
- Order No. 9777-2019 on the Conditions for Exercise and Supervision of Microfinance Operations under Article 2.3 of Law No. 2017-026 on Microfinance · 2019-05-13
- Law No. 2017-045 Governing the Activity and Supervision of Credit Information Bureaus · 2018-02-15
- Instruction No. 001/2024-CSBF on the Refinancing Conditions for Microfinance Institutions · 2025-02-26
- Instruction No. 001-DDI/2021 Setting the Procedures for the Approval of Tariff Grids for Credit Information Bureaus (CIBs) · 2021-03-05