ZANZIBAR: BANK governors and senior central bank officials from across Sub-Saharan Africa have called for enhanced cooperation to safeguard financial stability amid growing global uncertainties.
The high-level appeal was made during the Financial Stability Board (FSB) Regional Consultative Group for Sub-Saharan Africa (RCG-SSA) meeting hosted by the Bank of Tanzania (BoT) in Zanzibar over the weekend.
The meeting brought together Governors, Deputy Governors and senior officials from central banks and regulatory authorities in South Africa, Zambia, Kenya, Ghana, Nigeria, Botswana, Angola, Uganda, Namibia, Mauritius and Tanzania.
Representatives from the Bank of Central African States (BEAC) and the Central Bank of West African States (BCEAO) also attended.
Opening the session, BoT Governor Emmanuel Tutuba described the forum as a vital platform for exchanging insights and addressing emerging risks confronting regional economies.
“We are privileged and honoured to host this important meeting here in Zanzibar. It is through such collaboration that we strengthen our financial systems to serve our people and economies sustainably,” Governor Tutuba said.
He commended the Financial Stability Board for developing regulatory frameworks and supervisory standards that have reinforced financial systems globally and across Africa.
Deliberations focused on global and regional financial stability indicators, debt sustainability, Non-Bank Financial Intermediation (NBFI) and the opportunities and risks associated with Artificial Intelligence (AI) in the financial sector.
Governor Tutuba noted that recent global shocks, including geopolitical tensions, climate-related risks, policy uncertainties and the lingering effects of the COVID-19 pandemic have tested the resilience of financial systems worldwide.
“These dynamics have fueled inflationary pressures, heightened debt vulnerabilities and triggered exchange rate volatility, constraining fiscal space and complicating macroeconomic management,” he said.
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He also highlighted rapid technological innovation, particularly in financial technology (FinTech) and crypto-assets, which, while expanding financial inclusion, present regulatory, consumer protection and cybersecurity challenges that require coordinated oversight.
Governor Tutuba outlined Tanzania’s positive macroeconomic performance, noting that economic growth in 2025 was estimated at 6 per cent for Mainland Tanzania and 6.8 per cent for Zanzibar.
Growth is projected to increase to 6.3 per cent for the mainland and 7.2 per cent for Zanzibar in 2026.
He attributed the outlook to improved agricultural productivity, reliable electricity supply, expanding exports and rising tourist arrivals.
Governor Tutuba urged delegates to use the gathering not only for policy dialogue but also to strengthen professional networks and deepen collaboration across the region.
Inflation has remained within the medium-term target of 3–5 per cent, averaging between 3.1 per cent and 3.6 per cent on the mainland and 3.7 per cent in Zanzibar during the second half of 2025.
The financial sector, he added, remains stable and resilient. Non-performing loans declined to 2.8 per cent at the end of December 2025, well below the 5 per cent prudential threshold, while credit to the private sector grew by 17.6 per cent, signaling improved business confidence.
Governor Lesetja Kganyago of the South African Reserve Bank and Co-Chair of the RCG-SSA emphasised the importance of closer regional cooperation in navigating evolving risks.
“The Sub-Saharan Africa region operates within an interconnected global financial system. Strengthening supervisory coordination and sharing experiences through platforms such as the RCG-SSA enhances our collective ability to respond to shocks and safeguard financial stability,” he said.
Mr Denny Kalyalya, Governor of the Bank of Zambia and Co-Chair of the RCG-SSA, said the consultative group plays a crucial role in ensuring Africa’s perspectives inform the global financial stability agenda.
“Our discussions today on debt vulnerabilities, non-bank financial intermediation and digital innovation are timely. The RCG-SSA ensures that regional realities and priorities are reflected in global policy development under the FSB framework,” he noted.
Established in 2009 by the G20 following the 2008 global financial crisis, the FSB promotes global financial stability by developing and coordinating regulatory, supervisory and financial sector policies.
The FSB’s 2026 work programme focuses on addressing vulnerabilities in private credit markets, non-bank financial intermediation and digital innovation.
Key initiatives include developing sound practices for AI adoption, monitoring risks associated with stablecoins, strengthening crisis preparedness frameworks and advancing the Cross-border Payments Roadmap to improve efficiency in international transactions.
As a member of the FSB, the Bank of Tanzania has implemented reforms aligned with global standards, including frameworks for identifying Domestic Systemically Important Banks (DSIBs), climate-related risk assessments, emergency liquidity assistance mechanisms, financial crisis management guidelines and regulatory frameworks covering crypto-assets and cybersecurity risks.
The RCG-SSA meeting is hosted on a rotational basis among member countries, with Tanzania having last hosted the forum in 2015.