The Ghana cedi has emerged as Africa’s best-performing currency eight months into 2025, according to the World Bank’s latest Africa Pulse Report, which highlights its impressive 20 percent appreciation since January.
The report attributes the cedi’s remarkable rally to disciplined fiscal management, prudent monetary policy, stronger export earnings, and renewed investor confidence following Ghana’s successful debt restructuring.
The Zambian kwacha ranked second, appreciating by about 16 percent, supported by ongoing debt resolution measures, reduced oil import costs, and improved dollar supply. Meanwhile, currencies in Kenya, Tanzania, and Uganda also posted moderate gains, buoyed by steady export growth and recovering capital inflows.
Analysts say the cedi’s strong rebound marks a sharp turnaround from its steep depreciation last year, underscoring the success of Ghana’s economic reforms and improved external conditions. The World Bank also links the broader recovery of African currencies in 2025 to a weaker U.S. dollar, higher commodity prices, and more favorable global financial conditions, factors that have eased inflation and stabilized markets across the continent.
Despite its strong year-to-date performance, the cedi has recently experienced mild depreciation pressures as import activity rises ahead of the festive season and expectations of increased election-related spending grow.
To contain volatility, the Bank of Ghana has announced plans to inject about $1.15 billion into the foreign exchange market to meet demand and stabilize the currency.
Market experts, however, caution that sustaining the cedi’s momentum will depend on the government’s commitment to fiscal discipline, export diversification, and continued implementation of structural reforms aimed at maintaining macroeconomic stability.
