Several African currencies weakened sharply in 2025, exposing structural economic vulnerabilities and intensifying inflationary pressures across the continent.
In 2025, Africa saw sharp currency depreciations, with the South Sudanese Pound and Ethiopian Birr ranking among the world’s worst performers, according to the World Bank. Both currencies lost over 10% of their value, reflecting deep structural weaknesses rather than short-term market shocks.
South Sudan’s crisis was driven by heavy reliance on oil exports, which account for more than 90% of foreign exchange earnings. Disruptions to oil pipelines through Sudan cut dollar inflows, triggering a currency collapse and pushing inflation to 107.9% by September 2025.
Ethiopia faced similar pressures. The Birr became the world’s third-weakest currency, losing over 15% against the US dollar amid debt restructuring, dollar shortages, high inflation, and weakening investor confidence.
Currency instability continues to deter foreign investment and complicate business planning across Africa. Other weak currencies at year-end included those of Nigeria, Malawi, Tanzania, Uganda, and the DRC, highlighting ongoing macroeconomic challenges.
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