Friday, August 15, 2025

CBE Hosts Strategic Stress Testing Program for African Central Banks

Mona Yousef

Egypt’s Central Bank of Egypt (CBE), in cooperation with the COMESA Monetary Institute (CMI), convened a high-level, five-day training program focused on “Micro and Macro Stress Testing for Central Banks.” Held at the Egyptian Banking Institute (EBI) in Cairo, the program drew participation from 28 senior representatives of 11 African central banks within the Common Market for Eastern and Southern Africa (COMESA) bloc, alongside officials from the CMI.

The training underscores Egypt’s growing role as a continental financial hub and its continued investment in bolstering monetary institutions across Africa. Now in its 12th consecutive year, this initiative reflects the CBE’s commitment to enhancing the operational capacity of African central banks and fostering regional integration amid rising global economic uncertainty.

According to Dr. Naglaa Nozahie, Advisor to the Governor for African Affairs, the program serves as a critical platform for “strengthening institutional readiness in the face of crises and systemic financial risks.” She emphasized Egypt’s dedication to capacity-building efforts that promote resilient and inclusive financial systems across the continent.

The program tackled cutting-edge applications of stress testing in areas such as credit risk, liquidity management, climate-related financial shocks, and interbank contagion. Participating banks explored real-world case studies, model simulations, and cross-border risk scenarios. These sessions aimed to equip central bank officials with tools to identify vulnerabilities, assess financial sector resilience, and shape preemptive policy responses.

Dr. Ahmed Sahloul, Assistant Sub-Governor for the Macroprudential Sector at the CBE, highlighted that stress testing is increasingly central to modern central banking. “In the current geopolitical and macro-financial climate, these tests allow regulators to anticipate emerging threats—ranging from climate change to cyber risk—and adopt measures that uphold financial stability,” he stated.

Dr. Lucas Njoroge, Director of the COMESA Monetary Institute, lauded the CBE for its longstanding role in regional technical cooperation. “We are deeply grateful for Egypt’s leadership and expertise. The CBE’s sustained engagement has made a tangible difference in enhancing the capacity of central banks across the COMESA region,” he said, expressing optimism for expanded collaboration in future initiatives.

The program included contributions from experts in macroprudential oversight and off-site banking supervision, and featured interactive sessions promoting dialogue among participating institutions. A series of policy recommendations and stress testing proposals were drafted and will be presented to COMESA central bank governors at their annual summit in Uganda this November.

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