In a move aimed at strengthening consumer protection and increasing transparency, Côte d’Ivoire enacted a major legal reform today targeting the banking sector. The reform, signed into law by President Alassane Ouattara in Abidjan, introduces stricter regulatory measures on banking practices, specifically aiming to foster greater accountability among financial institutions and safeguard the interests of consumers.

This landmark legislation has been developed over the past two years by the Ministry of Finance in close collaboration with the Central Bank of West African States (BCEAO). The law, known as the Financial Transparency and Consumer Protection Act, establishes new requirements for banks operating within Côte d’Ivoire to disclose detailed information on financial products, fees, and terms of service. It also sets guidelines on data privacy and the ethical treatment of customers, a step expected to reduce unfair lending practices and encourage trust in the Ivorian banking system.

Key Provisions of the Reform

Under this new framework, banks must provide transparent information on all fees and charges associated with their services, such as loans and credit cards. Financial institutions will be required to disclose the full cost of credit to clients before issuing loans, including interest rates and all applicable fees. This measure is intended to ensure that consumers are fully informed before committing to financial products, a practice that has been highlighted as crucial by consumer advocacy groups such as the Ivorian Consumers Association (ACI).

The new law also includes the establishment of a Banking Oversight Board within the BCEAO, which will have the authority to monitor compliance with the reform. Banks found to be in violation of the new regulations may face fines, suspension of licenses, or further regulatory action. The Banking Oversight Board will further facilitate a complaint mechanism, providing customers with a direct channel to report grievances.

Reactions and Industry Impact

According to Minister of Finance Adama Coulibaly, the law is expected to build consumer confidence in the banking system and attract more individuals to formal financial services. “This reform is a vital step forward in protecting the Ivorian people and fostering a transparent and fair banking environment,” Coulibaly stated at a press briefing. He added that similar reforms in neighboring countries have demonstrated positive outcomes for consumer trust and financial inclusion.

The Ivorian banking sector, represented by the Professional Association of Banks and Financial Institutions of Côte d’Ivoire (APBEF-CI), has expressed cautious optimism, with spokesperson Eric Coffi indicating the sector’s readiness to comply with the new regulations. “The banking industry recognizes the need for increased transparency and is prepared to support measures that will improve customer relationships and accountability,” Coffi said. However, he also noted that some banks may face operational challenges as they adapt to the new compliance requirements.

The reform aligns with Côte d’Ivoire’s broader economic vision to enhance its financial system and promote sustainable growth. By standardizing the requirements for transparency and customer protection, this legislation aims to minimize the risk of financial exploitation and increase access to fair financial services. The International Monetary Fund (IMF) and other financial organizations have lauded this development as a positive step toward strengthening economic stability in West Africa.

Analysts expect that the Financial Transparency and Consumer Protection Act will lead to a wave of similar reforms in the region, especially among West African Economic and Monetary Union (WAEMU) member states, as countries work together to improve consumer protection across borders. Many believe that the changes will not only benefit individual consumers but also bolster foreign investment by promoting a stable and transparent financial environment.