July 4, 2025 – As digital currencies gain global traction, African central banks are increasingly exploring Central Bank Digital Currencies (CBDCs) to modernize payment systems, enhance financial inclusion, and address economic challenges unique to the continent. According to a July 2025 report from Nairametrics and insights from the International Monetary Fund (IMF) and Atlantic Council, at least 10 African central banks are actively researching or piloting CBDCs in 2025. These efforts aim to reduce cash dependency, improve cross-border payments, and counter the rise of private cryptocurrencies, though challenges like low adoption and infrastructure gaps persist. Below is an overview of the 10 African central banks leading this charge, their motivations, and the current state of their CBDC initiatives.

African Central Banks and Their CBDC Efforts

1. Central Bank of Nigeria (CBN) – eNaira

• Status: Launched (October 2021)
• Details: Nigeria was the first African nation to launch a retail CBDC, the eNaira, aimed at promoting financial inclusion, reducing cash processing costs, and improving payment efficiency. Despite early hype, adoption remains low, with only 0.5% of the population engaging with the eNaira by 2024, according to The Fintech Times. In 2025, the CBN is restructuring the eNaira, introducing USSD codes and slashing merchant fees to boost usage, which reached $10 million in transaction value by August 2024. Challenges include insufficient back-end technology and public skepticism.

1. Bank of Ghana – e-Cedi

• Status: Pilot Phase
• Details: The Bank of Ghana is testing the e-Cedi, a retail CBDC designed for use via digital wallets or offline contactless smart cards. The pilot focuses on financial inclusion for unbanked populations and facilitating cross-border payments. Ghana’s participation in the 2023 Nairobi summit on regional CBDC efforts underscores its commitment to advancing digital payments. The e-Cedi is seen as a potential tool to complement mobile money platforms like M-Pesa.

1. South African Reserve Bank (SARB) – Project Khokha

• Status: Pilot Phase (Wholesale CBDC)
• Details: SARB is experimenting with a wholesale CBDC for interbank transfers as part of Project Khokha’s second phase. It is also involved in a cross-border pilot with the central banks of Australia, Malaysia, and Singapore. The focus is on improving payment system efficiency and exploring interoperability for regional trade within the Southern African Development Community. SARB’s feasibility study continues to assess CBDC impacts on monetary policy.

1. Central Bank of Kenya (CBK)

• Status: Research Phase
• Details: Kenya’s central bank released a discussion paper in 2022 seeking public feedback on CBDC applications for retail and cross-border transactions. Governor Patrick Njoroge emphasized a cautious approach, warning against viewing CBDCs as a “silver bullet.” In 2025, Kenya continues to study CBDCs to enhance financial inclusion and payment traceability, leveraging its robust mobile money ecosystem. No pilot has been launched, with research expected to conclude by Q4 2025.

1. Bank of Zambia

• Status: Research Phase
• Details: Zambia announced its CBDC exploration in February 2022, focusing on feasibility tests to improve financial inclusion and payment efficiency. Research is ongoing in 2025, with a target completion by Q4 to assess risks and infrastructure needs. Zambia’s cautious approach aligns with Kenya’s, prioritizing regulatory clarity before deployment.

1. Bank Al-Maghrib (Morocco)

• Status: Research Phase
• Details: After lifting a four-year ban on cryptocurrencies in 2022, Morocco formed an exploratory committee to study a CBDC, the e-Dinar. In 2025, the central bank is collaborating with the IMF and World Bank to develop a regulatory framework, focusing on financial inclusion and cross-border payment efficiency. Morocco’s high cryptocurrency adoption (14th globally, per Chainalysis) drives its CBDC interest.

1. Central Bank of Tunisia

• Status: Research Phase
• Details: Tunisia is exploring the e-Dinar, a blockchain-based digital currency issued through the government’s post office since 2019. In 2025, the central bank is analyzing its potential to enhance payment systems and financial access, particularly for rural populations. Research focuses on offline functionality and regulatory frameworks to ensure stability.

1. Central Bank of Madagascar – e-Ariary

• Status: Research Phase
• Details: Madagascar is in the early stages of a two-phase project to study the e-Ariary, involving analysis, design, and experimentation. The CBDC aims to improve financial inclusion and reduce transaction costs in a country with limited banking infrastructure. Progress remains slow, with no pilot announced for 2025.

1. Bank of Tanzania

• Status: Research Phase
• Details: Tanzania announced its interest in CBDCs in 2022, focusing on financial inclusion and cross-border payment solutions. In 2025, research continues to evaluate infrastructure requirements and risks, with an emphasis on supporting a cashless economy and reducing reliance on physical currency. No timeline for a pilot has been confirmed.

1. Central Bank of Egypt
   • Status: Research Phase
   • Details: Egypt is exploring CBDCs to enhance financial inclusion and streamline cross-border remittances, a significant economic driver. In 2025, the central bank is assessing use cases for retail and wholesale CBDCs, drawing on regional trends and IMF guidance. Egypt’s high cryptocurrency adoption fuels interest in a regulated alternative.

Motivations and Challenges

African central banks are driven by several key motivations for exploring CBDCs, as outlined by the IMF and World Economic Forum:

• Financial Inclusion: CBDCs can provide unbanked populations with access to digital wallets, requiring only a mobile phone. This is critical in sub-Saharan Africa, where 29% of adults lack bank accounts (World Bank, 2023).
• Payment Efficiency: Retail CBDCs, like Ghana’s e-Cedi, aim to reduce transaction costs and enable offline payments, while wholesale CBDCs, like South Africa’s, streamline interbank transfers.
• Cross-Border Payments: Projects like the SARB’s cross-border pilot address high remittance costs, which average 9–15% in Africa compared to the global 6.8% (World Bank, 2023).
• Countering Cryptocurrencies: The rise of private cryptocurrencies (e.g., Nigeria and Morocco rank high in global adoption) prompts central banks to offer regulated alternatives to maintain monetary sovereignty.

However, challenges persist:

• Low Adoption: Nigeria’s eNaira struggles with only 14,000 active wallets out of 700,040 downloads, reflecting public distrust and technical issues.
• Infrastructure Gaps: Limited digital infrastructure and internet access hinder CBDC rollout, particularly in rural areas.
• Regulatory Risks: Central banks must balance innovation with financial stability, addressing concerns like data privacy and cyber threats.
• Global Headwinds: Rising global interest rates and cryptocurrency volatility, such as the FTX collapse, have slowed CBDC progress in some markets.

Regional and Global Context

The 10 African central banks join 137 countries globally (98% of GDP) exploring CBDCs, with 72 in advanced stages, per the Atlantic Council’s 2025 tracker. Only three countries—Bahamas, Jamaica, and Nigeria—have fully launched CBDCs, while 49 are in pilot phases. In Africa, the focus on financial inclusion aligns with regional priorities, but the continent lags behind leaders like India (e-Rupee, $122 million in circulation) and China (digital yuan). Collaborative efforts, such as the IMF’s proposed multi-country pilot network and South Africa’s cross-border pilot, signal a push for regional interoperability.

Sentiment on X, as seen in posts from @Nairametrics and @C_T_N_G, highlights enthusiasm for Africa’s CBDC exploration but notes the need for better infrastructure and public engagement to ensure success.

Outlook for 2025

In 2025, these 10 African central banks are expected to deepen their CBDC research, with Ghana and South Africa likely to advance their pilots. Nigeria’s eNaira restructuring could set a precedent for overcoming adoption hurdles, while Kenya and Zambia’s cautious approaches may delay launches until 2026. The IMF’s CBDC Virtual Handbook and regional summits will provide technical support, but success hinges on addressing infrastructure, regulatory, and public trust challenges. As Africa navigates the digital currency landscape, these efforts could reshape its financial systems, fostering inclusion and efficiency in a region ripe for innovation.