A consortium of European central banking institutions has initiated a program funded by the European Union (EU) aimed at enhancing the macroeconomic and financial stability of African nations. This novel initiative represents a multilateral effort to encourage regional cooperation.
The press release reveals that the European banks involved in this program include Deutsche Bundesbank, Banque de France, six national central banks from the European System of Central Banks, and the European Central Bank.
The press release further states that the program, supported by €2 million from the EU, is designed to fortify Africa’s central banks' capacities and address issues such as good governance, financial stability, resilience, strategic planning, and international cooperation through dialogue and knowledge exchange. The ultimate objective is to stimulate opportunities for sustainable growth, including job creation. The program aligns with the African Union’s Agenda 2063, the 2020 EU Communication "Towards a comprehensive Strategy with Africa," and the Global Gateway Africa–Europe Investment Package.
According to the press release, this pilot project will be executed by Deutsche Bundesbank, Banque de France, Nationale Bank van België/Banque Nationale de Belgique, Banco de España, Banca d’Italia, Lietuvos bankas, Banco de Portugal and Národná banka Slovenska. Over the forthcoming two years, central banks in 24 African countries will receive an intensive training program on crucial central banking and supervisory subjects such as anti-money laundering, banking supervision, data management, digitalization, fintech and cyber security. Furthermore it includes financial consumer protection and financial literacy as well as reserve management and statistics. The program will also address climate change in relation to central banking along with governance issues.
"The European Union is committed to supporting African central banks in their efforts to enhance the integrity of financial systems and foster a conducive environment for trade and public–private investments," said Jutta Urpilainen, European Commissioner for International Partnerships. "This programme, strengthening peer-to-peer partnerships between European and African banks, contributes to our shared aims of boosting the financial integration of economies and driving sustainable growth in Africa."