Nearly half of African currencies experienced depreciation in May 2025, with Ghana, Nigeria, and South Africa among those affected, despite ongoing economic reforms across the continent.
The African Export-Import Bank’s latest macroeconomic report reveals that ten countries recorded notable currency weakening during the review period. Ghana’s cedi faced particularly severe pressure, depreciating 21.5 percent month-on-month and 10.6 percent year-on-year, trading at 10.3 cedis per dollar compared to 13.9 cedis in the previous year.
Nigeria’s naira showed mixed performance, appreciating 2.1 percent month-on-month against the dollar but maintaining an 11.5 percent year-on-year decline. This pattern reflects persistent structural economic challenges despite recent policy interventions. South Africa’s rand demonstrated modest improvement, strengthening from 18.1 to 17.8 rand per dollar monthly, though recording a marginal 0.7 percent annual decline.
Trade volumes reflected broader economic pressures across the continent. Total African trade decreased to $120.8 billion in February 2025 from $125.9 billion in January, though this represented a 0.3 percent increase compared to February 2024. Intra-African trade followed similar trends, declining from $18.6 billion to $18 billion monthly while achieving a 5.6 percent year-on-year increase.
“These figures demonstrate the growing influence of the African Continental Free Trade Area and deeper regional integration efforts,” according to the Afreximbank analysis. The report noted that regional trade improvements indicate strengthening economic ties despite currency volatility.
Credit outlook improvements provided positive counterbalance to currency pressures. Nigeria received upgrades from both Fitch and Moody’s rating agencies, reflecting progress in institutional reforms. Consequently, Nigerian Eurobond yields due in June 2031 declined by 250 basis points, indicating improved investor confidence.
Several African economies successfully returned to international capital markets with new Eurobond issuances, including Angola, Egypt, Côte d’Ivoire, Senegal, and Morocco. This trend demonstrates renewed investor appetite and reflects Africa’s capacity to capitalize on easing global interest rates.
Ghana achieved a credit rating upgrade to CCC+ from S&P following successful Eurobond restructuring and improved fiscal management. Benin was upgraded to BB-, recognizing strong fiscal responsibility and performance improvements.
The report concluded that Africa’s macroeconomic performance remains relatively resilient, supported by ongoing reforms, stronger credit fundamentals, and moderating inflation. However, mounting global challenges including commodity price volatility and geopolitical tensions continue to present downside risks to the continental outlook.
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