Eight months into 2025, the Ghanaian cedi has emerged as Africa’s best-performing currency, according to the World Bank’s latest Africa Pulse Report. Despite experiencing mild depreciation in recent weeks, the cedi has appreciated by over 20% since January, outpacing all other African currencies and signaling a strong turnaround for Ghana’s economy.
The World Bank attributes this remarkable performance to a combination of fiscal discipline, sound monetary policies, and growing investor confidence. Ghana’s successful debt restructuring program, coupled with rising export earnings, has strengthened the country’s external position and reassured both local and foreign investors. The Zambian kwacha came in second, appreciating by about 16%, supported by debt resolution measures, lower oil import bills, and increased U.S. dollar availability.
Other African currencies, including those in Kenya, Tanzania, and Uganda, also posted moderate gains as exports rebounded and capital inflows improved. Analysts note that the cedi’s recovery is especially impressive considering its sharp depreciation last year, describing the 2025 rebound as a reflection of Ghana’s effective economic reforms and improved global market conditions.
The report further highlights that the broader strengthening of African currencies this year is being driven by a weaker U.S. dollar, higher commodity prices, and easing global financial conditions. These factors have helped reduce inflationary pressures and stabilize financial markets across the continent, boosting investor optimism in several African economies.
However, the cedi faces renewed challenges ahead of the festive and election seasons, as import demand rises and public spending expectations grow. To maintain currency stability, the Bank of Ghana has announced plans to inject $1.15 billion into the foreign exchange market. Market analysts caution that sustaining the cedi’s gains will require Ghana to maintain fiscal discipline, diversify exports, and continue structural reforms aimed at ensuring long-term macroeconomic stability.
source: citi newsroom