The Central Bank of Egypt (CBE), in its capacity as chair of the African Financial Stability Report Working Group (AFSR-WG), has led the preparation and publication of the first African Financial Stability Report (AFSR), marking a major milestone in efforts to strengthen macroprudential oversight and financial stability cooperation among African central banks.
The report was prepared under the umbrella of the African Financial Stability Committee (AFSC) and represents the first continent-wide assessment of financial stability, providing a unified framework for monitoring financial risks, enhancing transparency and supporting coordinated policy responses across Africa.
The publication follows the establishment of the AFSC, which was proposed by CBE Governor Hassan Abdalla to the Association of African Central Banks (AACB) in 2024 to strengthen cooperation on financial stability issues across the continent.
The committee is supported by two specialised working groups. The first is responsible for preparing the African Financial Stability Report, while the second focuses on the development and implementation of macroprudential policies. An AFSC Secretariat coordinates the work of both groups and facilitates cooperation among African central banks.
Cairo hosted the committee’s inaugural meeting in December 2024, officially launching the continent-wide initiative.
The CBE said the report comes at a time of growing challenges facing financial systems worldwide, underscoring the need for integrated frameworks to identify and monitor existing and emerging risks while strengthening the use of macroprudential policy tools to safeguard financial stability and support sustainable economic growth.
Beyond its analytical role, the report is intended to enhance transparency by providing a comprehensive assessment of financial stability across Africa and to serve as a reliable reference for investors, policymakers and international financial institutions.
The inaugural report covers 46 African countries, representing around 85% of the continent’s countries, 84% of its population and approximately 90% of its gross domestic product (GDP).
It was prepared with contributions from financial stability experts representing seven African central banks: the Central Bank of West African States (BCEAO), the Bank of Central African States (BEAC), the National Bank of Rwanda, the Bank of Mauritius, the South African Reserve Bank, the Bank of Mozambique and the Central Bank of Eswatini.
Among its key findings for 2024, the report highlighted continued progress by African central banks in strengthening financial stability frameworks, with an average implementation rate of 61% of international best practices.
Africa’s Financial Stability Index reached 0.55, supported by improved banking sector performance. Despite continued exposure to external and domestic shocks, the continent maintained average economic growth of 3.2%.
The report also showed that the total assets of Africa’s financial system reached approximately 126% of the continent’s GDP. Banking sector assets accounted for 80% of GDP, while the non-banking financial sector represented 46%.
The banking sector remained the dominant component of Africa’s financial system, accounting for 63% of total financial assets, compared with 37% for the non-banking financial sector.
According to the report, African banks continued to maintain financial soundness indicators above the Basel Committee’s regulatory requirements, with an average capital adequacy ratio of 19.7%, supported by strong liquidity coverage ratios in both local and foreign currencies.
The report also highlighted the expanding role of African capital markets in financial intermediation, with stock market capitalisation reaching 56% of the continent’s GDP.
It further noted that Africa continues to lead globally in mobile wallet adoption, while making significant progress in financial digitalisation and the development of regional payment systems, strengthening financial inclusion and cross-border financial integration.
