Top 10 African Currencies with the Strongest Year-to-Year Appreciation in 2025

In Summary:

• Several African currencies appreciated in 2025 due to stronger remittances and export inflows.
• Ghana’s cedi gained over 40 percent, while Nigeria’s naira and Zambia’s kwacha recorded strong rebounds.
• Central banks boosted stability through tighter policies and clearer FX management.
• Commodity earnings and rising tourism supported currencies in countries like Morocco, Botswana and Mozambique.

Deep Dive!!

Sunday, 30 November 2025 – Africa’s foreign exchange landscape in 2025 reflects a year of decisive monetary actions, stronger external inflows and renewed investor confidence across several high-performing economies. A combination of tighter policy frameworks, improved export earnings and more stable macroeconomic environments has allowed a select group of currencies to post meaningful appreciation against major benchmarks. These gains signal not only stronger national balance sheets but also the impact of structural reforms that many African governments intensified in the past two years.

The strongest performers in the country stand out for different reasons, ranging from resource-driven inflows to disciplined financial management and rising service-sector contributions. Together, they illustrate how varied economic strengths can translate into currency resilience when supported by consistent governance and market-friendly policies.

Using verified data from the World Bank and independent Central Banks across Africa, the 2025 rankings highlight the countries that achieved the most impressive year-to-year appreciation, offering a clear view of the economic momentum shaping Africa’s currency markets this year.

10. Ugandan Shilling (UGX)

The performance of the Ugandan shilling in 2025 reflected a period of measured currency strengthening driven primarily by improved liquidity conditions and consistent policy interventions. Throughout the year, market reports from pointed to episodes where sustained remittance inflows eased pressure on the foreign exchange market, enabling a more orderly movement of the UGX against major currencies. These flows helped soften demand-side volatility that had caused weakness in previous cycles.

Alongside remittances, the Bank of Uganda’s calibrated interventions contributed meaningfully to the currency’s stability. Strategic open market operations, improved reserve management and targeted measures to maintain dollar supply in the interbank system provided a predictable environment that supported appreciation. Such actions helped cool speculative positions and enhanced confidence among market participants who had anticipated greater FX strain earlier in the year.

Another factor that reinforced the UGX’s appreciation was rising agricultural export earnings, which strengthen seasonal FX inflows and support rural production cycles. As international prices for key Ugandan exports improved, the supply of tradable foreign currency increased, allowing the shilling to register modest but consistent gains. This combination of structural inflows and policy decisions allowed the UGX to maintain one of East Africa’s more stable paths in 2025.

9. South African Rand (ZAR)

The rand’s progress through 2025 was closely tied to shifting global financial conditions and domestic momentum that gradually restored investor confidence. As US inflation eased and expectations of rate adjustments firmed, capital flowed back into risk-driven markets, creating favourable conditions for emerging-market currencies like the ZAR. Reuters coverage throughout the year noted several appreciation streaks linked to improved global sentiment.

South Africa’s internal economic indicators reinforced these gains. Better output data from the mining and services sectors, coupled with a narrowing current account deficit, supported a stronger rand by mid-year. Market participants observed increased interest from foreign institutional investors who had previously reduced exposure due to volatility in 2024, contributing to fresh inflows that improved liquidity in the FX market.

Further support came from enhanced transparency in South Africa’s monetary policy communications. The South African Reserve Bank’s consistent rate stance and clear forward guidance helped anchor expectations, reducing uncertainty in the currency market. This combination of external and domestic drivers allowed the ZAR to record one of its more stable appreciation cycles in recent years.

8. Mozambican Metical (MZN)

Mozambique’s metical strengthened during 2025 as the country benefited from higher commodity-driven earnings that improved its external position. Gas, coal and agricultural export receipts rose in several quarters, and Trading Economics data captured mid-year appreciation that aligned with these inflows. Stronger balances in the export sector helped the metical outperform earlier forecasts.

In parallel, improving investor confidence supported by continued progress on major LNG-related developments contributed to a more positive currency outlook. Although full-scale LNG production timelines remain staggered, the investor commitments and preparatory activity supported medium-term optimism around Mozambique’s FX dynamics. These expectations helped temper volatility and supported the MZN’s performance even in periods of uneven global commodity prices.

The central bank’s cautious monetary approach also played a role. Maintaining tight conditions where necessary and ensuring controlled liquidity in the financial system helped preserve value. Together, these elements allowed the metical to consolidate its position as a stronger-than-expected performer in 2025.

7. Botswana Pula (BWP)

Botswana’s pula recorded moments of appreciation in 2025 as improved export performance strengthened the country’s external accounts. Diamonds continued to anchor earnings, and Reuters noted several phases where increased sales and favourable pricing conditions drove FX inflows that enhanced the pula’s resilience. These inflows were critical in shielding the currency from broader regional pressures.

In addition to export strength, Botswana’s monetary management contributed to currency stability. The Bank of Botswana maintained a policy posture aimed at preserving the value of the pula within the framework of its managed float system. Adjustments in the crawl mechanism and prudent oversight of liquidity conditions limited disruptive currency swings, creating a more supportive environment for appreciation.

The stability of Botswana’s broader macroeconomic climate reinforced the pula’s performance. Strong governance, predictable fiscal planning and a diversified services sector added to investor confidence, helping the currency outperform expectations within the Southern African region. This mixture of external and internal advantages secured the pula’s place among 2025’s more stable African currencies.

6. Kenyan Shilling (KES)

Kenya’s shilling shifted direction in 2025 after enduring severe depreciation the year before, marking one of the region’s more notable turnarounds. Higher remittances, which rose steadily from the first quarter of the year, provided a critical buffer in the FX market. Reuters documented repeated periods of appreciation tied to stronger foreign inflows and renewed interest from offshore investors.

Cooling inflation further supported improvements in the KES. As price pressures stabilised, consumer confidence and investment activity began recovering, helping reinforce FX market stability. These developments gave the Central Bank of Kenya room to maintain a firmer policy stance, signalling to investors that the currency’s previous downward trajectory had been brought under control.

Reforms that improved market transparency and government debt management also contributed to better sentiment. The combination of stabilisation policies and improving economic fundamentals positioned the Kenyan shilling as one of East Africa’s more improved performers, restoring confidence after the volatility of 2024.

5. Rwandan Franc (RWF)

The strength of Rwanda’s franc in 2025 was anchored in a consistently expanding services sector, particularly in tourism and business travel. Reuters and National Bank of Rwanda data highlighted the role of rising foreign-exchange earnings, which kept the currency well supported throughout the year. These inflows provided a stable FX base that helped the franc outperform regional peers.

Monetary policy discipline added to the franc’s resilience. The central bank maintained a careful balance between price stability and growth support, allowing the RWF to strengthen without creating distortions in domestic markets. Clear communications and predictable policy decisions reduced uncertainty, helping market actors form stable expectations about exchange-rate movement.

Growing investor confidence in Rwanda’s improving infrastructure and expanding technology ecosystem further bolstered the currency. As capital inflows diversified and foreign participation increased in key sectors, the RWF sustained momentum that reflected the country’s broader economic progress during the year.

4. Zambian Kwacha (ZMW)

The kwacha’s performance in 2025 benefited significantly from the country’s copper market upswing. Copper prices moved steadily upward during the first half of the year, and Bloomberg reported double-digit appreciation spells reflecting the surge in export-related FX inflows. These earnings strengthened Zambia’s external position and supported the kwacha’s marked improvement.

Debt-restructuring progress also contributed to improved sentiment. As Zambia advanced negotiations with creditors and secured clearer timelines for fiscal consolidation, investors responded positively. This shift mitigated risk perceptions and increased dollar supply within domestic markets, easing pressure on the ZMW.

The central bank’s monetary stance added another layer of support. Tight policy, enhanced reserve accumulation and improved FX-market oversight created conditions that enabled the kwacha to sustain appreciation through multiple trading cycles. These steps underpinned one of the strongest recoveries observed in 2025.

3. Nigerian Naira (NGN)

The naira experienced an exceptional appreciation trajectory in 2025 after extensive FX-market reforms reshaped Nigeria’s monetary landscape. Bloomberg and Reuters identified the NGN as one of the top global gainers in the year’s first half, with aggressive interest-rate hikes and unified exchange mechanisms attracting substantial inflows. The new framework brought much-needed clarity to market pricing.

Nigeria’s reforms helped restore investor confidence in ways not seen for years. Improved transparency in FX operations, tighter monetary management and reduced arbitrage windows encouraged foreign portfolio investors to return. The renewed participation in government securities and equities helped reinforce liquidity and provided a steady base for appreciation.

Increased external earnings from improved crude lifting, better remittance inflows and tech-driven services exports also supported the currency’s performance. The combination of policy recalibration and stronger earnings placed the naira among the most closely watched currencies of 2025.

2. Moroccan Dirham (MAD)

Morocco’s dirham advanced steadily in 2025 due to a favourable balance of external earnings and a stable macroeconomic climate. Official data and IMF tracking pointed to robust tourism receipts, expanding industrial exports and rising agricultural output as pillars supporting FX inflows. The combination of these sectors helped the MAD strengthen within its semi-flexible regime.

The strength of Morocco’s institutional framework amplified these gains. Credible monetary policy, steady inflation control and an efficient financial system ensured foreign investors maintained confidence in the country’s economic direction. This predictability gave the dirham room to appreciate without significant volatility.

Growing integration with European trade partners further enhanced the currency’s performance. Investments in manufacturing, automotive, aerospace and green industries increased export capacity and FX supply. Together, these factors positioned the MAD as the second-strongest African currency performer of 2025.

1. Ghanaian Cedi (GHS)

The cedi led the continent with one of the sharpest appreciations recorded globally in 2025. Reuters confirmed a rally exceeding 40 percent by late May, driven by the Bank of Ghana’s assertive policies and a marked increase in export earnings. The combination of rising cocoa prices, expanding gold receipts and improved FX market liquidity contributed to the cedi’s extraordinary rise.

Ghana’s reform program strengthened the foundations for this performance. Improved fiscal coordination, enhanced monetary transparency and tighter policy implementation helped restore credibility in the currency markets. These steps reduced speculation and restored investor engagement, shifting sentiment decisively in favour of the cedi.

With a stabilised environment, foreign participation increased, particularly in government securities and investment flows tied to Ghana’s commodity and service sectors. This broadened external support helped sustain the currency’s gains, securing its position as Africa’s leading performer in 2025.

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