A new report by the African Export-Import Bank (Afreximbank) has revealed widespread foreign exchange (FX) challenges across Africa, with nearly half of the continent’s currencies weakening in May 2025.
The report warns that despite economic reforms and modest recovery, FX instability remains a critical concern. The June edition of Afreximbank’s Monthly Macroeconomic Report highlighted contrasting trends. Nigeria’s naira appreciated 2.1% month-on-month but declined 11.5% year-on-year, signaling long-term structural hurdles. Ghana’s cedi faced the steepest drop, plunging 21.5% month-on-month and 10.6% annually, trading at 10.3 per dollar. Countries like South Africa, Namibia, and Eswatini recorded mild appreciations, while Kenya and Liberia maintained stability. Yet, at least ten African nations suffered notable FX losses, exposing their vulnerability to global financial conditions and domestic fiscal strains.
Trade figures reflected further fragility, with total African trade dropping from $125.9 billion in January to $120.8 billion in February. However, intra-African trade grew 5.6% year-on-year, supported by the African Continental Free Trade Area (AfCFTA). The report also spotlighted credit improvements. Nigeria and Ghana received rating upgrades after implementing reforms, while Benin earned a BB- rating for fiscal discipline. Several countries, including Egypt and Morocco, returned to global capital markets, signaling renewed investor confidence. Still, Afreximbank cautioned that geopolitical tensions, global trade volatility, and inflation risks continue to threaten macroeconomic stability. The bank urged African governments to bolster internal resilience and speed up structural reforms.