Practically half of African currencies have proven indicators of depreciation regardless of regular improvement throughout the continent, in keeping with the most recent version of the Month-to-month Developments within the African Macroeconomic Surroundings report printed by the African Export-Import {Bank} (Afreximbank) for June 2025.
The report, which analyzed alternate price dynamics for Might 2025, revealed a combined efficiency throughout African economies.
Whereas some currencies appreciated or remained secure, others skilled vital declines, reflecting the continent’s publicity to world {economic} volatility and home fiscal pressures.
In line with Afreximbank, nations corresponding to Ghana, South Africa, Namibia, and Eswatini recorded forex appreciation throughout the overview interval. In the meantime, Kenya and Liberia maintained relative alternate price stability.
Nonetheless, 10 African nations skilled notable forex depreciation in Might. Amongst them, Nigeria’s naira appreciated by 2.1% month-on-month (MoM) in opposition to the U.S. greenback however nonetheless posted an 11.5% year-on-year (YoY) decline, highlighting ongoing structural challenges.
Ghana’s cedi, regardless of latest fiscal reforms, depreciated sharply by 21.5% MoM and 10.6% YoY, exchanging at 10.3 cedis to the greenback in Might in comparison with 13.9 cedis throughout the identical interval final yr.
South Africa’s rand additionally weakened barely, shifting from 18.1 rand per greenback in April to 17.8 rand in Might. On a YoY foundation, the rand depreciated marginally by 0.7%.
The report additionally highlighted a decline in complete African commerce, which fell to $120.8 billion in February 2025 from $125.9 billion in January. Nonetheless, this nonetheless represented a 0.3% improve in comparison with February 2024.
Intra-African commerce adopted the same pattern, declining to $18 billion in February from $18.6 billion in January. Regardless of the month-to-month drop, this determine marked a 5.6% YoY enchancment, reflecting the rising affect of the African Continental Free Commerce Space (AfCFTA) and regional integration efforts.
Afreximbank famous that Africa’s credit score panorama is evolving positively, pushed by fiscal reforms, improved governance, and resilient {economic} development. A number of nations have acquired credit standing upgrades, signaling renewed investor confidence.
“Nigeria has acquired upgrades from each Fitch and Moody’s, reflecting progress in institutional reforms,” the report said. “Consequently, Eurobond yields due in June 2031 have declined by 250 foundation factors.”
South Africa’s score was maintained at BB- by S&P, although the company issued a cautionary notice: “Develop sooner, repair your fiscal points, or stay caught.”
Ghana, which skilled a selective default final yr, was upgraded to CCC+ by S&P after efficiently restructuring its Eurobonds and enhancing its fiscal outlook. Benin additionally acquired an improve to BB-, credited to robust fiscal self-discipline and efficiency.
The report famous that a number of African nations, together with Angola, Egypt, Nigeria, Côte d’Ivoire, Senegal, and Morocco, returned to worldwide capital markets, issuing Eurobonds amid favorable situations and easing world rates of interest.
This resurgence in market entry displays improved investor sentiment and the continent’s potential to leverage earlier overseas debt successes.
Afreximbank concluded that Africa’s macroeconomic resilience in mid-2025 is underpinned by ongoing reforms, improved credit score scores, easing inflation, and comparatively secure alternate charges in lots of economies.
Nonetheless, the report warned that world challenges, together with stagflation fears, fiscal tightening, geopolitical tensions, and weakening world commerce, pose vital draw back dangers.
“Though over half of African nations present secure or enhancing fundamentals, regional disparities persist, and commodity worth volatility continues to weigh on exterior balances,” the report famous.
Regardless of reasonable development projections and easing inflation, the continent stays susceptible to exterior shocks. Afreximbank emphasised the necessity for African governments to strengthen inside coverage buffers and speed up structural transformation to navigate the unsure world {economic} panorama.
