In line with the presidential directives to foster Egyptian – African cooperation and integration, and under the auspices of H.E. Mr. Hassan Abdalla, Governor of the Central Bank of Egypt (CBE), the CBE hosted the inaugural meeting of the African Financial Stability Committee (AFSC), which continued for three days, from December 9 – 11, 2024, and aimed at enhancing financial stability across the continent.

Mr. Tarek ElKholy, Deputy Governor of the CBE, launched the meetings – on behalf of the CBE’s Governor – with the participation of Mr. Waesh Khodabocus, Chair of the AFSC and representative of the Bank of Mauritius, Dr. Djoulassi Oloufade, Executive Secretary of the Association of African Central Banks (AACB), as well as several representatives from African central banks and both the Macroprudential and African Cooperation Sectors at the CBE.

In his opening remarks, Mr. ElKholy emphasized, “The grouping of all the African countries in one committee is the seed towards endorsing a more stable and harmonized financial system, leading to a sustainable economic growth. In fact, with all the threats and challenges that the African countries have faced in recent years, it becomes crucial to enhance financial stability across the continent by coordinating the financial stability frameworks implemented in different countries. This will enable us to create Africa’s own bloc and adopt a unified voice for the Continent’s financial stability, thereby underscoring the stability of the African financial systems internationally”.

The establishment of the AFSC marks a groundbreaking stride, as this Committee will be the first to issue a Financial Stability Report (FSR) covering all African central banks. The report reflects the development and performance of African financial institutions through a comprehensive risk assessment framework. Furthermore, it will play a pivotal role in employing analytical tools, implementing macroprudential policy tools, and recommending preemptive policies against various risks. Accordingly, the Committee aims to contribute in safeguarding the stability through implementing macroprudential policies on the financial system in Africa.

Noteworthy, Mr. Abdalla proposed the establishment of the AFSC during the annual meetings of the AACB, held on September 4, 2024, in Mauritius, contributing to the maintenance of financial stability on the African level, while operationalizing a macroprudential policy.