Africa’s Weakest Currencies in 2025: Why the Naira Escaped the Bottom 10 as Others Crumbled
- South Sudanese pound and Ethiopian birr emerge as Africa's weakest currencies in 2025, losing over 10% against the dollar
- South Sudan's oil dependence exacerbates economic crisis, leading to currency collapse and rampant inflation at 107.9%
- Weak currencies deter investments as volatility turns foreign and local business planning nearly impossible across Africa
Weak currencies deter investments as volatility turns foreign and local business planning nearly impossible across Africa
A weak currency in Africa is rarely just a market statistic. It often shows up in everyday life through higher food prices, rising transport costs, shrinking incomes and deeper poverty.
Source: Getty Images
In 2025, this reality became starker as several African currencies recorded sharp declines, sending shockwaves far beyond foreign-exchange trading floors.
A new end-of-year ranking of Africa’s weakest currencies highlights how fragile macroeconomic structures, political instability and export dependence continue to shape economic outcomes across the continent.
Notably, Nigeria’s naira was absent from the bottom 10, despite its own well-documented struggles.
World Bank Flags South Sudan and Ethiopia
According to the World Bank, the South Sudanese pound and the Ethiopian birr emerged as the worst-performing African currencies in 2025, each losing more than 10 per cent of their value against the US dollar during the year.
These declines were not driven by speculation alone. Instead, they reflected deeper structural weaknesses that left these economies exposed to shocks they were ill-equipped to absorb.
South Sudan: Oil dependence turns costly
South Sudan offers a clear case study of how over-reliance on a single export can devastate a currency.
More than 90 percent of the country’s foreign-exchange earnings come from crude oil exports, leaving the economy highly vulnerable to disruptions.
In 2025, fighting in neighbouring Sudan severely damaged the oil pipeline linking South Sudan to Port Sudan, its primary export route.
With oil exports disrupted, foreign-currency inflows dried up almost overnight. The result was a steep fall in the South Sudanese pound.
While the currency collapse was not the root cause of the crisis, it magnified the pain.
Inflation surged from 2.4 per cent in 2023 to an eye-watering 107.9 per cent by September 2025, according to Finance in Africa, eroding household purchasing power.
Ethiopia’s Birr joins global laggards
Ethiopia’s birr also suffered a brutal year. In 2025, it became the world’s third-weakest currency, trailing only the Argentine peso and the Turkish lira.
The birr lost over 15 percent of its value against the dollar as Ethiopia grappled with dollar shortages, high inflation and a complex sovereign debt restructuring.
Investor anxiety intensified, further weakening the currency and complicating efforts to stabilise the economy.
Why weak currencies scare investors
Currency volatility remains a major deterrent to investment across Africa. For foreign investors, sharp exchange-rate losses can wipe out returns in a matter of months.
For local businesses, fluctuating currencies make planning nearly impossible, especially when import costs swing wildly.
These pressures help explain why countries with fragile currencies often struggle to attract long-term capital.
The 10 weakest African currencies in 2025
Based on data compiled using the Forbes currency calculator, the following African countries ranked among those with the weakest currencies at the end of 2025.
Source: Getty Images
The list underscores a common theme: economies with limited export diversity, persistent inflation and political or fiscal instability remain the most vulnerable when global shocks hit.
As Africa heads into 2026, the lesson is clear. Currency strength is not just about central bank policy. It is a reflection of deeper economic resilience, diversification and stability.
Meanwhile, a prior report by Legit.ng disclosed that the naira ended 2025 woefully despite interventions by the Central Bank of Nigeria (CBN).
This is despite a robust external reserves accretion, which hit seven-year high, according to CBN data.
The Nigerian currency exchanged for ₦1,445.68 per dollar in the foreign exchange market on Tuesday, December 30, 2025.
10 African countries with lowest fuel prices
Legit.ng earlier reported that the drop in crude oil prices in the global market is reflected in domestic markets across the world.
Many countries have seen a decline in the prices of gasoline, while prices remain stagnant in other countries.
Several factors determine fuel prices. Besides the volatility of the international market, government subsidies, domestic oil production, strong state control of petroleum pricing, and carbon taxes are some determinants of retail prices of gasoline and other petroleum products.
Source: Legit.ng
Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
