Addis Ababa, 12 June 2024 (ECA) – In a landmark initiative to bolster financial stability and economic growth, central banks across Africa gathered for a technical workshop focused on the development of local currency financing and capital market development. This pivotal event was jointly organized by the United Nations Economic Commission for Africa (UNECA), TDB, TCX, FSD Africa with the support of the Bill & Melinda Gates Foundation. The three-day workshop aimed to strengthen collaboration, share best practices and raise awareness among central bankers of foreign exchange risk management and solutions.
The workshop also highlighted the fundamental impact of these aspects on capital market development and provided a platform for exchanges on the importance of Central Banks within this ecosystem and their specific requirements.
Ms. Sonia Essobmadje, Chief, Finance and Domestic Resource Mobilization section, opened the workshop by reminding the significance of well-developed domestic capital markets as a critical enabler for mobilizing domestic resources, mitigating currency risk, and fostering a stable environment for investment. She stressed that prioritizing local currency financing is a proactive step to protect our economies from external shocks and create a more resilient financial ecosystem. Mr. Abraham Woldemichael, from the Eastern and Southern African Trade and Development Bank (TDB), spoke about TDB's role and the solutions available for financing local economies. Ms. Jemima Gathumi, Head of Programmes, Capital Markets, FSD Africa , highlighted the need to develop domestic capital markets and leverage opportunities on sustainable finance. Ms. Isabelle Lessidjina, Senior Vice-President TCX Fund, welcomed the collaboration between the different institutions in organizing this workshop and the opportunity to discuss how local currency financing can protect African economies from volatility.
Interactive sessions involving central bankers discussed available tools and instruments, and explored strategies for developing resilient capital markets capable of attracting foreign investment while minimizing risk. The workshop marked a breakthrough in managing foreign exchange risks, mobilizing domestic resources and creating a stable investment environment, paving the way for sustainable economic development in the region.
Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: eca-info@un.org