Financial systems across Sub-Saharan Africa are proving to be strong and stable despite rising global geopolitical tensions.
Speaking recently, the Governor of the Bank of Tanzania, Emmanuel Tutuba, said African economies have built resilience over the years and are better prepared to handle global shocks than before.
Stronger Policies and Better Supervision
Mr Tutuba explained that many African central banks have strengthened financial regulations, improved supervision of banks, and adopted modern risk-management systems. These reforms have helped protect the region’s banking sector from external pressures such as:
Global conflicts and geopolitical tensions
Inflation in major world economies
Currency fluctuations
Rising global interest rates
He noted that African banks are now better capitalised and more cautious in their lending practices, which reduces the risk of financial instability.
Lessons from Past Crises
Sub-Saharan Africa has faced several economic challenges in recent years, including the Covid-19 pandemic and supply chain disruptions caused by international conflicts. According to Mr Tutuba, these experiences pushed governments and financial institutions to strengthen economic buffers and improve coordination between fiscal and monetary policies.
As a result, many countries in the region have:
Increased foreign exchange reserves
Improved digital payment systems
Promoted financial inclusion
Enhanced cross-border cooperation among central banks
Tanzania’s Position
In Tanzania, the Bank of Tanzania continues to monitor inflation, exchange rates, and liquidity levels to ensure financial stability. The country’s banking sector remains stable, with steady growth in deposits and credit to the private sector.
Mr Tutuba emphasized that maintaining financial stability is essential for economic growth, investment, and job creation. A stable financial system helps businesses access loans, supports trade, and encourages both local and foreign investment.
Looking Ahead
While global uncertainties remain, Sub-Saharan Africa’s financial institutions are showing confidence and preparedness. Continued reforms, strong regulation, and regional cooperation will be key to maintaining this stability.
In simple terms, despite global political and economic challenges, African financial systems — including Tanzania’s — are standing firm and continuing to support economic development.
