CASABLANCA-At the Africa Financial Industry Summit (AFIS) 2025,Dr.Yamungu Kayandabila, Deputy Governor of the Bank of Tanzania, called for a more pragmatic and Africa-centred approach to managing foreign reserves.
He emphasized the need for the continent to revisit its investment policies to ensure that its assets serve Africa's own interests.
Key Points
-Current Investment Policy Under Review:
Tanzania's FX investment policy restricts holdings to AAA–A rated assets, primarily in Western markets.
The programme has accumulated 15 tonnes of gold worth $2 billion, but these reserves remain stored abroad, earning zero return.
- Call for Local Partnerships:
Kayandabila invited African commercial banks to engage in partnerships and product innovation to better manage and monetise foreign reserves locally.
-Building Continental Resilience:
Africa must trust its own financial institutions and design investment frameworks that build continental resilience and value.
Kayandabila's Message
"For central banks, FX is like insurance-it provides confidence and credibility. But we must rethink where and how we hold it...our local banks have done a fantastic job growing our economies. The trust is there-now we must extend it to how we manage our reserves."