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The Ghanaian cedi has emerged as Africa’s top-performing currency so far in 2025, despite recent mild depreciation pressures, according to the World Bank’s latest Africa Pulse Report.
The report highlights that the cedi has appreciated by over 20 percent against major foreign currencies since the beginning of the year — the strongest performance on the continent. The World Bank attributes this remarkable rebound to disciplined fiscal management, prudent monetary policy, rising export earnings, and renewed investor confidence following Ghana’s successful debt restructuring.
The Zambian kwacha ranked as the second-best performer, appreciating by 16 percent, supported by ongoing debt resolution efforts, lower oil import costs, and an improved supply of U.S. dollars.
East African currencies, including the Kenyan shilling, Tanzanian shilling, and Ugandan shilling, also recorded moderate gains, driven by stronger export growth and a rebound in capital inflows.
Economic analysts say the cedi’s resurgence is particularly noteworthy, considering its steep depreciation in 2024. The currency’s swift recovery underscores the effectiveness of Ghana’s economic reforms and improved global conditions.
The World Bank also noted that the general strengthening of African currencies this year has been bolstered by a weaker U.S. dollar, higher commodity prices, and more accommodative global financial conditions — all contributing to easing inflation and stabilizing markets across the continent.
Recent Headwinds and Central Bank Response
Despite the cedi’s strong year-to-date performance, it has come under mild pressure in recent weeks due to increased import demand ahead of the festive season and expectations of higher public spending ahead of the 2026 general elections.
To contain volatility and maintain currency stability, the Bank of Ghana has announced plans to inject $1.15 billion into the foreign exchange market in the coming weeks.
Market analysts caution, however, that sustaining the cedi’s gains will require continued fiscal discipline, deeper export diversification, and structural reforms to consolidate macroeconomic stability in the medium term.
