Although the Ghana cedi has experienced a slight decline in recent weeks, it remains Africa’s best-performing currency eight months into 2025, according to the World Bank’s latest Africa Pulse Report. The report notes that the cedi has appreciated by more than 20 percent since the beginning of the year, marking the strongest showing among African currencies. This impressive rally is attributed to disciplined fiscal policy, sound monetary management, increased export revenues, and renewed investor optimism following Ghana’s successful debt restructuring.
The Zambian kwacha ranks as the second-best performer, rising 16 percent amid ongoing debt resolution progress, reduced oil import costs, and an improved supply of U.S. dollars. Meanwhile, the currencies of Kenya, Tanzania, and Uganda recorded moderate gains, helped by robust export growth and recovering capital inflows. Analysts highlight that the cedi’s turnaround is especially noteworthy given its sharp losses last year, with its rapid recovery underscoring the impact of Ghana’s economic reforms and more favourable external conditions.
The World Bank attributes the broader strengthening of African currencies in 2025 to a weaker U.S. dollar, higher commodity prices, and easier global financial conditions, all of which have helped ease inflationary pressures and stabilise markets across the continent. However, the cedi has faced slight depreciation pressure in recent weeks, as businesses increase imports ahead of the festive season and election-related spending expectations rise.
In response, the Bank of Ghana has announced plans to inject about $1.15 billion into the foreign exchange market to ease demand pressures and keep the cedi stable. Market watchers, however, warn that sustaining the currency’s gains will depend on Ghana’s continued commitment to fiscal discipline, export diversification, and structural reforms aimed at consolidating macroeconomic stability.
Source: Emmanuel Oppong
