Egypt leads publication of Africa's first financial stability report

CAIRO - 30 July 2026: The Central Bank of Egypt (CBE) has chaired the working group that prepared and published Africa's first Financial Stability Report, marking a milestone in strengthening financial cooperation among African central banks.

 

The report, issued under the African Financial Stability Committee, covers 46 African countries, representing around 90 percent of the continent's GDP and 85 percent of African nations, making it the first continent-wide assessment of financial stability.

 

According to the report, African banks account for 63 percent of the continent's financial system assets, compared with 37 percent for the non-banking financial sector. Banking assets amount to the equivalent of 80 percent of Africa's GDP, while non-bank financial institutions account for assets equal to 46 percent of GDP.

 

The report also found that African banks continue to maintain capital levels above the Basel Committee's regulatory requirements, with an average capital adequacy ratio of 19.7 percent, alongside strong liquidity coverage ratios in both local and foreign currencies.

 

It highlighted the growing role of African capital markets, with stock market capitalization reaching 56 percent of the continent's GDP, while Africa continues to rank among the world's leading regions in mobile money adoption, driven by digital transformation and regional payment initiatives.

 

In addition, the report showed that African central banks have implemented an average of 61 percent of international financial stability best practices, while Africa's Financial Stability Index reached 0.55, reflecting improved banking sector performance.

 

Despite global economic headwinds, Africa recorded an average economic growth rate of 3.2 percent in 2024, with total financial system assets reaching 126 percent of GDP, according to the report.

 

The African Financial Stability Committee was established following a proposal by CBE Governor Hassan Abdalla during the 2024 meetings of the Association of African Central Banks (AACB) to enhance cooperation among African central banks in promoting financial stability.

 

The report was prepared by experts from the central banks of Egypt, the West African States, Central African States, Rwanda, Mauritius, South Africa, Mozambique, and Eswatini, with Egypt leading the report's preparation and publication.