Nigeria's Naira Earns New Spot on List of Top 10 Weakest African Currencies in 2025
As we reach the midpoint of 2025, currency devaluation remains a significant issue across Africa. Despite various stabilisation efforts, many African currencies continue to grapple with inflation, high dependency on imports, and historical economic missteps.
However, there are early signs of recovery in certain countries, thanks to tighter monetary policies, increased exports, and external financial support.
Source: UGC
Weak currencies strain African economies
The persistent weakness of some currencies, like the Egyptian pound and the Nigerian naira, has been particularly notable, reflecting deep structural issues in the economy.
For countries that heavily rely on imports for critical goods such as fuel, food, medicine, and machinery, a depreciating currency often leads to rising inflation.
On the positive side, gradual improvements in currency values can reduce inflationary pressures, boost consumer confidence, and help central banks make room for potential interest rate cuts.
Progress in these areas not only eases the burden on households struggling with high costs but also enhances the attractiveness of these countries to foreign investors, signalling greater economic stability.
Based on figures from the Forbes currency calculator, updated on June 23, 2025, Legit.ng has compiled a list of the 10 African nations with the lowest-valued currencies.
1. São Tomé & Príncipe - Dobra
The São Tomé & Príncipe Dobra continues to hold the title of the weakest currency in Africa. As of June 2025, the exchange rate stands at an alarming 22,281.80 Dobra to one US dollar.
This currency has remained in a precarious position for years due to the country’s dependency on imports and limited industrial output.
2. Sierra Leone - Leone
The Sierra Leonean Leone remains in second place, trading at 20,969.50 per US dollar.
The currency continues to face downward pressure due to inflation, fiscal deficits, and a sluggish economic recovery following the country's civil war and recent pandemic setbacks.
3. Guinea - Franc
The Guinean Franc is now valued at 8,657.48 per US dollar. Guinea’s currency struggles are linked to political instability, inflationary pressures, and dependence on the mining sector, which fluctuates with global commodity prices.
Despite attempts to stabilise the economy, the currency’s value remains weak.
4. Uganda - Shilling
The Ugandan Shilling has depreciated to 3,605.57 per US dollar, placing Uganda fourth on this list.
The country's challenges include a reliance on imports and an underdeveloped industrial base, which limits its ability to generate sufficient foreign currency to support its exchange rate.
5. Burundi - Franc
The Burundian Franc continues to struggle with high inflation, now trading at 2,975.85 per US dollar.
Burundi remains one of the poorest countries in the world, with a largely agrarian economy, limited industrialisation, and inadequate access to foreign investment, all contributing to the franc's weakness.
6. Democratic Republic of the Congo - Franc
The Congolese Franc stands at 2,905.28 per dollar, with the DRC facing ongoing political instability, a reliance on fluctuating global commodities like copper, and insufficient infrastructure investment.
These factors contribute to the continued depreciation of its currency.
7. Tanzania - Shilling
The Tanzanian Shilling has recently traded at 2,653.06 per US dollar, despite the Tanzanian government's ongoing efforts to implement economic reforms.
Inflation and high import bills continue to undermine efforts to stabilise the currency.
Source: UGC
8. Malawi - Kwacha
Malawi's Kwacha has also faced significant devaluation, with the exchange rate now sitting at 1,732.71 per US dollar.
The country’s economic structure, which heavily depends on agriculture and foreign aid, has made it vulnerable to currency depreciation.
9. Nigeria - Naira
The Nigerian Naira, while still among the weakest in Africa, has seen some improvement recently. As of June 2025, it stood at 1,553.68 to the US dollar.
The Nigerian government has been actively pursuing policies to address inflation and stabilise the naira, but the country’s reliance on oil exports and imports remains a major challenge.
10. Rwanda - Franc
The Rwandan Franc rounds out the top 10, trading at 1,448.29 per US dollar. Despite Rwanda's remarkable economic growth in recent years, its currency continues to face challenges related to the high cost of imports, particularly fuel, and the small size of its economy compared to regional peers.
Prospects in the second half of 2025
As we continue into the second half of 2025, some of these currencies may show signs of recovery, particularly if external financial support continues and domestic economic reforms take hold.
However, many of these countries will need to address deep-rooted structural issues before significant and sustained improvements in their currencies can occur.
Naira, Cedi, others show stability against US dollar
In related news, Legit.ng earlier reported that several African currencies are expected to remain stable against the US dollar, supported by central bank actions and seasonal market patterns.
Foreign investment inflows and regulatory interventions are bolstering Nigeria’s naira and Ghana’s cedi.
Others show potential for modest gains based on several economic reforms and overcoming recent challenges.
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Source: Legit.ng
