The economic stability of a currency is very key to a condevelopment. When a currency is weak, it means citizens pay more for imported goods like fuel and medicine. This condition hurts local businesses. It also makes life more difficult for everyday people.
This report highlights ten African nations struggling with week currencies. The ranking identifies the 10 weakest currencies in Africa for the 2025. The figures are based on research from the Forbes financial publication. This list includes diverse countries from West, East, and Central Africa.
1. São Tomé and Príncipe Dobra
The Dobra is listed as the weakest currency in this ranking. It belongs to the small island nation of São Tomé and Príncipe. This small West African country faces high economic volatility. This means their currency value changes very quickly.
Holding the number one position highlights the deep economic struggles the nation faces. It also suggests a major challenge in finding foreign exchange or controlling internal prices. The country relies heavily on a few economic activities which makes its currency very vulnerable.
2. Sierra Leone Leone
The Leone of Sierra Leone holds the second position on this list. The value of the Leone has been under intense pressure for some time. This affects the cost of living for all citizens.
Sierra Leone has great natural resources. However, it struggles with inflation and high debt levels. These two factors put continuous pressure on the national currency. A weak Leone makes essential imported items very expensive for consumers.
For the country to address this very significant issue, the government must focus on controlling rising prices and boosting export revenue.
3. Guinea Franc
The Franc currency of Guinea is ranked third among the weakest in Africa. Guinea is rich in minerals. It has large deposits of bauxite and other valuable resources. Despite this natural wealth, its currency remains weak against the US Dollar and other major currencies.
The weakness of the Franc often results from political instability and poor resource management. When the government does not manage the economy well, investors lose trust. This loss of trust causes the currency value to drop quickly.
The country must convert their natural wealth into stable economic growth. A stronger Franc would help the people of Guinea benefit more directly from their country’s minerals.
4. Uganda Shilling
The Shilling of Uganda takes the fourth position on the list. Uganda is known for its strong agricultural sector and growing population. The Shilling’s weakness is a concern for its future economic growth plans. This affects businesses across East Africa.
The currency struggles due to heavy government borrowing and high demand for foreign goods. When a country buys more than it sells, its currency often loses value. The Shilling reflects this trade imbalance.
Uganda must work to encourage local production and control unnecessary imports. The government needs to maintain fiscal discipline.
5. Burundi Franc
The Franc of Burundi is listed as the fifth weakest currency. Burundi is one of the smallest nations on the list. It often faces internal challenges that hinder its economic progress.
Political uncertainties and slow economic diversification affect the Franc’s value. The country relies heavily on coffee exports. When global coffee prices drop, the entire national economy suffers greatly. This lack of economic variety makes the currency weak.
Burundi needs to expand its economic base beyond traditional exports. A stable Franc is necessary to build a more resilient and less vulnerable economy.
6. Congo Franc
The Franc of Congo is ranked number six among Africa’s weakest currencies. This country possesses vast mineral wealth including diamonds and copper. Yet, this great wealth has not translated into a strong, stable currency for its people.
The Franc’s weakness is a result of long-standing conflict and ongoing corruption issues. These problems scare away foreign investors. When investors avoid the country, the demand for the Franc drops. This drives the currency value down further.
Congo must establish strong institutions and fight corruption fiercely for it to boost it’s currency.
7. Tanzania Shilling
The Shilling of Tanzania is ranked seventh on the list. Tanzania has a massive tourism sector and strong agricultural exports. Despite these advantages, its currency shows signs of significant vulnerability. This weakness affects its trading relationships.
The Tanzanian Shilling often struggles against the US Dollar because of high government spending and global pressures. The country needs foreign currency to pay for large infrastructure projects. This demand keeps the Shilling weak.
The number seven position means Tanzania must find new ways to boost exports and control its trade deficit. Managing external debt is also very important.
8. Malawi Kwacha
The Kwacha currency of Malawi holds the eighth rank. Malawi is a country that relies heavily on its agricultural produce. It is vulnerable to changes in weather patterns and global commodity prices. These factors directly affect the Kwacha’s strength.
The currency has been hurt by consistent shortages of foreign exchange. This shortage makes it difficult for local companies to buy what they need from outside. The shortage puts strong downward pressure on the Kwacha’s value.
The government must focus on policies that make the country less dependent on a few crops. They need to encourage other industries to grow.
9. Nigeria Naira
The Naira of Nigeria is listed in the ninth position. Nigeria is the largest economy in Africa and a major oil producer. Despite its size and wealth, the Naira still struggles greatly.
The weakness of the Naira is mainly caused by the country’s huge dependence on oil revenue. When global oil prices drop, the Naira suffers heavily. High inflation and parallel market activities also pull the official value down severely.
Nigeria must use its large market size to encourage non-oil industries. Strengthening the Naira is a key in Nigeria, it will also help for restoring market confidence.
10. Rwanda Franc
The Franc of Rwanda completes the list at the tenth position. Rwanda is widely praised for its stable government and strong anti-corruption efforts. However, its currency still faces challenges that keep it among the weakest.
The Rwandan Franc’s weakness is tied to the country’s reliance on imports and foreign aid. Though aid is declining, the need for foreign goods remains high. This creates a persistent imbalance in trade.
Rwanda must continue its focus on building its service and technology sectors. They must create products that can be sold internationally. This focus will generate the foreign currency needed to strengthen the Franc.
