Nearly half of African currencies weakened in May 2025, according to Afreximbank’s latest Monthly Developments in the African Macroeconomic Environment report. The report highlights persistent volatility in the region’s financial landscape.
While some countries benefit from reform-led growth, others face intense exchange rate pressures. In Ghana, the cedi fell by 21.5% month-on-month in May despite fiscal reforms and a recent credit upgrade. Nigeria’s naira, though appreciating slightly against the dollar, recorded a significant year-on-year decline. Benin and Namibia maintained relative stability, supported by strong policy buffers and renewed access to European markets.
Total African trade fell to $120.8 billion in February, yet intra-African trade under the AfCFTA posted a 5.6% year-on-year rise, signalling growing regional integration. Credit ratings are improving and investor confidence is returning, but Afreximbank warns that global risks from geopolitical tensions still threaten progress.
REPORT BY ELSIE KOOMSON APPIAH
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