Developing the economy can perform the traditional functions to undertake the responsibility of economic growth with stability on the African continent.
The Governor of the National Bank of Rwanda Ambassador Claver Gatete elaborated that to accelerate the development of the least developed countries, challenges must be solved in advance. He made the remarks during the assembly of African central bank governors at the 34th ordinary seminar held in Kigali this week. The meeting, whose theme was Financing Development in Africa and the role of Central Banks, was organised by the Association of African Central Banks (AACB).
“Long-term debt sustainability is difficult for African banks due to exterior conflicts on African continent”, Gatete said.
The Executive Secretary of (AACB) Mr. Samuel MEANGO said that to meet the set target, which is tied to Africa’s relatively poor economic development,” is not to rely on foreign financial support only. He advised that countries should also ensure aid effectiveness and emphasise domestic resource mobilisation”.
He further more said that encouraging savings through establishment of microfinance institutions and other non-bank financial institutions and creation of incentives for acquisition of financial assets could help African Banks to enhance domestic savings for higher investment. It is in this respect that the seminar sought to offer means which Africa can address its needs in financing development.
The chairperson of the meeting Mrs.Monique Nsanzabaganwa who is the Deputy Governor of the National Bank of Rwanda, encouraged players in the financial sector to anticipate and advise in terms of proper policies like market development and enhancing policy and regulation that is prudent and flexible enough to accommodate the innovations.
About the risks the banks are ready to take for the sake of development and how they can be measured, Nsanzabaganwa said that central bankers should reflect more and come up with strategies on how to develop the world market and how and where to invest local assets. Otehrs were the extent the partners and regulators should adopt technology like mobile banking and ICT and how to improve credit rating.
She reiterated that Africa should use appropriate indicators to illustrate the continent’s position in the global economy. These include addressing the problem of corruption by strengthening anti-corruption institutions and effective and efficient implementation of development programmes, especially, those related to poverty reduction.
The Association of African Central Banks was established to promote co-operation in the monetary, banking and financial spheres in Africa. The idea of AACB was first introduced on May 25, 1963, at the Summit Conference of African Heads of State and Government held in Addis Ababa, Ethiopia.
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