Africa's Banking Sector Faces Significant Challenges, Says Tunisian Central Bank Vice-Governor
At the 16th edition of the Africa Banking Forum in Tunis, Mourad Abdessalem, Vice-Governor of the Central Bank of Tunisia, painted a worrying picture of the economic challenges facing the African banking sector. Amidst soaring inflation, climate risks, and cyber threats, he emphasized the urgent need to adopt more resilient strategies to preserve financial stability and promote economic inclusion.
According to Abdessalem, Africa's economic growth rate stands at 3.2% on average, a figure that remains insufficient to absorb demographic growth and meet investment needs. Inflation, estimated at 18.6%, heavily weighs on purchasing power and hinders business development.
"The informal economy drains significant fiscal resources, while brain drain reflects a lack of opportunities for young people," he highlighted. In the face of these challenges, he called for a overhaul of economic policies to stimulate productive investment and reduce dependence on foreign capital.
To address the sector's challenges, the Vice-Governor of the Central Bank of Tunisia identified three major transformations redefining finance in Africa:
- The rise of disruptive technologies: artificial intelligence and blockchain open up new perspectives but increase cybersecurity risks.
- The proliferation of fintechs: their number has tripled since 2020, revolutionizing customer experience and promoting financial inclusion.
- The impacts of climate change: one-third of African banks report a deterioration of their assets due to natural disasters.
In this context, the Vice-Governor advocated for a broader adoption of green finance, increased support for SMEs, and improved financial literacy among populations. He also highlighted the importance of the Pan-African Payment and Settlement System (PAPSS), an ambitious project aimed at facilitating transactions between African countries and reducing dependence on foreign currencies.
"Africa must unite to overcome these challenges. Our economies cannot prosper without strengthened regional integration," he concluded.
As digital transformation and climate crisis disrupt the global economy, Mourad Abdessalem's message is clear: the resilience of the African banking sector depends on innovation, inclusion, and increased regional cooperation.
