Fifty staff from Central Banks in twelve COMESA countries have been trained in understanding the complex interaction between monetary policy and fintech. The comprehensive training will enable staff to provide advice for effective policy responses to the challenges and opportunities presented by fintech in the COMESA region.

Organised by the COMESA Monetary Institute, the virtual training held from 07 – 11 April (CMI) enabled the participants to share knowledge on each country’s Fintech journey, conduct and implementation of Monetary policy.

Speaking when he addressed the trainees, CMI Director Dr Lucas Njoroge observed that the rapid growth of fintech in the world, including in the COMESA region, has continued to revolutionize the traditional financial services, offering innovative solutions such as digital currencies, peer-to-peer lending, and blockchain technologies.

He noted that Fintech has the potential to increase financial inclusion, reduce transaction costs, and improve access to credit. These changes can influence the effectiveness of traditional monetary policy tools and alter the speed and the manner in which monetary policy decisions are transmitted throughout the economy, potentially impacting inflation, economic growth, and financial stability.

Additionally, he noted that fintech developments might lead to the emergence of new financial markets or disrupt existing ones, requiring central banks to adapt their policy frameworks and monitoring tools.

Thus, he observed that as fintech continues to evolve, it is essential for central banks to understand the complex interaction between monetary policy and fintech to better manage potential risks and leverage opportunities to enhance monetary policy outcomes, ensuring the stability of the financial system and the broader economy.

Participating countries included Burundi, Congo DR, Egypt, Eswatini, Malawi, Mauritius, Madagascar, Rwanda, Somalia, Sudan, Uganda and Zambia. The COMESA Clearing House (CCH) also attended the training.