Nearly half of African currencies have shown signs of depreciation despite steady development across the continent, according to the latest edition of the Monthly Developments in the African Macroeconomic Environment report published by the African Export-Import Bank (Afreximbank) for June 2025.
The report, which analyzed exchange rate dynamics for May 2025, revealed a mixed performance across African economies.
While some currencies appreciated or remained stable, others experienced significant declines, reflecting the continent’s exposure to global economic volatility and domestic fiscal pressures.
Currency Trends: Gains and Losses
According to Afreximbank, countries such as Ghana, South Africa, Namibia, and Eswatini recorded currency appreciation during the review period. Meanwhile, Kenya and Liberia maintained relative exchange rate stability.
However, 10 African countries experienced notable currency depreciation in May. Among them, Nigeria’s naira appreciated by 2.1% month-on-month (MoM) against the U.S. dollar but still posted an 11.5% year-on-year (YoY) decline, highlighting ongoing structural challenges.
Ghana’s cedi, despite recent fiscal reforms, depreciated sharply by 21.5% MoM and 10.6% YoY, exchanging at 10.3 cedis to the dollar in May compared to 13.9 cedis during the same period last year.
South Africa’s rand also weakened slightly, moving from 18.1 rand per dollar in April to 17.8 rand in May. On a YoY basis, the rand depreciated marginally by 0.7%.
Trade and Credit Developments
The report also highlighted a decline in total African trade, which fell to $120.8 billion in February 2025 from $125.9 billion in January. However, this still represented a 0.3% increase compared to February 2024.
Intra-African trade followed a similar trend, declining to $18 billion in February from $18.6 billion in January. Despite the monthly drop, this figure marked a 5.6% YoY improvement, reflecting the growing impact of the African Continental Free Trade Area (AfCFTA) and regional integration efforts.
Afreximbank noted that Africa’s credit landscape is evolving positively, driven by fiscal reforms, improved governance, and resilient economic growth. Several countries have received credit rating upgrades, signaling renewed investor confidence.
“Nigeria has received upgrades from both Fitch and Moody’s, reflecting progress in institutional reforms,” the report stated. “As a result, Eurobond yields due in June 2031 have declined by 250 basis points.”
South Africa’s rating was maintained at BB- by S&P, though the agency issued a cautionary note: “Grow faster, fix your fiscal issues, or remain stuck.”
Ghana, which experienced a selective default last year, was upgraded to CCC+ by S&P after successfully restructuring its Eurobonds and improving its fiscal outlook. Benin also received an upgrade to BB-, credited to strong fiscal discipline and performance.
Eurobond Issuance and Market Access
The report noted that several African countries, including Angola, Egypt, Nigeria, Côte d’Ivoire, Senegal, and Morocco, returned to international capital markets, issuing Eurobonds amid favorable conditions and easing global interest rates.
This resurgence in market access reflects improved investor sentiment and the continent’s ability to leverage earlier foreign debt successes.
Outlook: Resilience Amid Global Risks
Afreximbank concluded that Africa’s macroeconomic resilience in mid-2025 is underpinned by ongoing reforms, improved credit ratings, easing inflation, and relatively stable exchange rates in many economies.
However, the report warned that global challenges, including stagflation fears, fiscal tightening, geopolitical tensions, and weakening global trade, pose significant downside risks.
“Although over half of African countries show stable or improving fundamentals, regional disparities persist, and commodity price volatility continues to weigh on external balances,” the report noted.
Despite moderate growth projections and easing inflation, the continent remains vulnerable to external shocks. Afreximbank emphasized the need for African governments to strengthen internal policy buffers and accelerate structural transformation to navigate the uncertain global economic landscape.
If the rand changes from 18.1 to 17.8 against the dollar it means sthe rand strengthened…..not weakened as you stated…..or the dollar weakened…
U shd check Ur mathematics for Ghana- if a cedi was 13 cedis last year to the dollar and this year it’s now 10. That is not a depreciation – but rather an appreciation.