Mobile money and electronic banking services have expanded across Burundi in recent years, but most Burundians continue to rely on cash, deterred by high transaction fees, limited digital access and lingering mistrust of electronic payment systems, economists and financial analysts say.
Despite growing mobile phone ownership and efforts by banks and telecom operators to promote digital services, electronic transactions remain marginal in a country where incomes are low and daily commerce is largely cash-based.
According to data from the Banque de la République du Burundi (BRB), millions of mobile money accounts have been registered nationwide. However, only a fraction are actively used, and most digital transactions consist of deposits and withdrawals rather than direct payments or transfers.
High Fees Undermine Adoption
Economists say the cost of using digital platforms is the biggest obstacle.
“Transaction fees are simply too high for the average Burundian,” said an independent economist based in Bujumbura. “When someone has to pay 7,000 francs just to send 100,000 francs, the system stops being a convenience and becomes a burden.”
Lumicash, the country’s leading mobile money service, charges fees that many users find prohibitive. In a country where a large share of the population survives on small, irregular incomes, even modest fees discourage regular use.
Similar concerns apply to digital banking platforms.
Customers using Bancobu’s Enoti service report paying around 8,000 Burundian francs to withdraw 1 million francs, a cost analysts say discourages savings and formal banking.
“These fees effectively penalize people for trying to use formal financial channels,” said Clémentine Habonimana, a financial inclusion researcher. “As a result, cash remains the rational choice for most households.”
Cash Still King
While the total value of digital transactions has increased, official data show that cash remains dominant. More than half of digital transactions involve converting electronic balances into cash, signaling that users treat mobile money as a temporary storage tool rather than a replacement for cash.
Peer-to-peer transfers and merchant payments account for only a small portion of transaction value, far behind neighboring countries such as Kenya, Uganda and Tanzania, where mobile money is embedded in daily economic life.
“Burundi’s digital payment ecosystem is still shallow,” said an economist specializing in regional finance. “Without affordable pricing and widespread acceptance by merchants, electronic payments cannot become part of everyday behavior.”
Infrastructure and Trust Gaps
Beyond cost, infrastructure challenges continue to slow adoption. Internet penetration remains low, particularly in rural areas where most Burundians live. Many users rely on basic phones, and network disruptions are common outside major cities.
Low digital literacy also plays a role. Some users fear making costly errors during transactions or losing money due to system failures, concerns economists say are worsened by limited consumer protection mechanisms.
“Trust is essential,” Habonimana said. “People are reluctant to digitize their money when they do not fully understand the system or when dispute resolution is weak.”
Government Push, Limited Impact So Far
The central bank has pledged to modernize Burundi’s payment system and promote electronic transactions, citing benefits such as reduced cash shortages, improved transparency and better tax collection.
Economists say those goals will remain difficult to achieve unless transaction fees are reduced and digital services are tailored to low-income users.
“Digital finance will only work if it saves people money,” analyst said. “In Burundi, it often does the opposite.”
A Gradual Transition
For now, cash remains king in Burundi’s economy. Until electronic transactions become cheaper, more reliable and easier to use, analysts say most Burundians will continue to handle their money the traditional way not out of resistance to technology, but out of economic necessity.
