Several African currencies have posted notable gains in 2025, offering rare economic breathing space at a time when much of the continent is grappling with inflation, rising debt and external shocks to trade.
A stronger currency eases pressure on import-dependent economies by lowering the cost of essentials such as fuel, food, industrial equipment and manufactured inputs. It also reduces the burden of servicing dollar-denominated public debt, a major concern for many African governments.
The currency gains come amid wider global shifts, including disruptions caused by US-China trade tensions and tariffs introduced under former US president Donald Trump, which have weakened the dollar and reshaped trade flows.
Improved macroeconomic discipline and stronger policy frameworks have helped stabilise currencies in countries such as Tunisia, Libya, Morocco, Ghana and Botswana, placing them among the continent’s top performers.
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As of December 8, 2025, the strongest African currencies against the US dollar were led by the Tunisian dinar, followed by the Libyan dinar and the Moroccan dirham. Ghana’s cedi and Botswana’s pula rounded out the top five, with the Seychellois rupee, Eritrean nakfa, South African rand, Lesotho loti and Namibian dollar also making the top ten.
Elsewhere, Kenya’s shilling has remained largely unchanged throughout 2025, trading within a narrow band of KSh 129 to 130 per dollar. The government attributes this stability to adequate foreign exchange reserves held by the Central Bank of Kenya.
The International Monetary Fund, however, has questioned the currency’s prolonged calm, describing the shilling as “excessively stable” during a mid-October economic review, reigniting debate over whether the exchange rate reflects underlying market dynamics or sustained policy intervention.
