ZANZIBAR: Central bank governors from across sub-Saharan Africa have called for stronger regional coordination to safeguard financial stability as global economic uncertainty, rising debt and rapid technological change reshape the financial landscape.
The appeal came during a meeting of the Regional Consultative Group for Sub-Saharan Africa (RCG-SSA) of the Financial Stability Board, hosted by the Bank of Tanzania in Zanzibar.
Participants included governors and senior officials from central banks in South Africa, Zambia, Kenya, Ghana, Nigeria, Botswana, Angola, Uganda, Namibia, Mauritius and Tanzania, alongside representatives from regional monetary authorities in Central and West Africa.
Opening the session, Bank of Tanzania Governor Emmanuel Tutuba said geopolitical tensions, climate-related shocks, policy uncertainty and the lingering effects of the pandemic had tested financial systems worldwide.
“These dynamics have fuelled inflationary pressures, heightened debt vulnerabilities and triggered exchange rate volatility, constraining fiscal space and complicating macroeconomic management,” he said.
Discussions focused on debt sustainability, non-bank financial intermediation, private credit markets and the risks and opportunities associated with artificial intelligence in finance.
Governor Lesetja Kganyago of the South African Reserve Bank said sub-Saharan Africa operates within an interconnected global system, making supervisory coordination essential in responding to cross-border shocks.
Zambia’s central bank governor Denny Kalyalya said the forum ensures that African perspectives are reflected in global financial rule-making under the FSB framework.
The FSB was established by the G20 in 2009 following the global financial crisis to strengthen oversight of the international financial system. Its current work programme includes monitoring risks linked to stablecoins and other digital assets, improving crisis preparedness and advancing reforms to cross-border payments.
Tutuba said Tanzania’s economy grew by an estimated 6 per cent on the mainland and 6.8 per cent in semi-autonomous Zanzibar in 2025, with inflation remaining within a 3–5 per cent medium-term target range. Non-performing loans stood at 2.8 per cent at the end of December, below the 5 per cent prudential benchmark, while private sector credit grew by 17.6 per cent.
African policymakers have increasingly sought to balance financial innovation and inclusion with safeguards against systemic risk, particularly as fintech and mobile money usage expand rapidly across the continent.
