The Bank of Tanzania Academy is hosting a five-day regional course in groundbreaking collaboration of East African Community partner state central banks to address the pressing challenges posed by climate change and the digitalization of the financial sector.

The course, which takes places from February 5 to 9, 2024 in Arusha brings together participants from East African Community (EAC) Partner States, key financial institutions, and renowned international organizations.

The course, supported by esteemed entities such as the International Monetary Fund (IMF), the World Bank, the Network for Greening the Financial System (NGFS), the Africa Cyber Security Resource Centre (ACRC), WAMU Regional Switch, and the Global Institute of Macro-Prudential Policy (GIMM), aims to foster knowledge-sharing and collaboration in tackling shared climate challenges.

Opening the course, the Bank of Tanzania Deputy Governor (Financial Stability and Deepening), Ms. Sauda Msemo, emphasized the need for EAC partner states to come together and share experiences, considering the common challenges faced.

“As the region witnesses stable economic growth, the delicate balance between economic benefits, climate change risks, and cybersecurity threats from digitalization takes center stage in discussions,” Deputy Governor Msemo said in a speech read on her behalf by the Acting Director, Bank of Tanzania Arusha Branch, Ms. Saphy Mahmoud.

Climate change risks, including droughts, floods, and extreme weather events, have a substantial impact on economies, affecting agriculture, food security, livelihoods, and infrastructure. The course aims to equip central banks with the necessary tools to implement interventions ensuring the safety and stability of the financial system in the face of these challenges.

“The training will draw upon internationally accepted principles, including guidelines from the Financial Stability Board and Basel Committee for Banking Supervision,” she said.

Recognizing the critical role of responding to climate-related risks in strengthening macroeconomic fundamentals, the EAC central banks prioritize the incorporation of climate data and information into policies. The training will focus on building transition arrangements, supporting sustainable markets, and enhancing the capability of the region in climate risk analysis and stress-testing exercises.

As the training unfolds, the EAC central banks anticipate fruitful discussions and the development of strategies to effectively navigate the evolving landscape of climate change and financial digitalization.