By Business Insider Reporter and Agencies
The continued depreciation of African currencies is weighing heavily on households, businesses and governments across the continent.
A new ranking of the ten weakest currencies in Africa as of September 2025 highlights the fragility of several economies, with East African nations not spared from the trend.
According to data compiled by the Forbes currency calculator, currencies such as the Tanzanian shilling, Ugandan shilling, Rwandan franc, and Burundian franc are showing signs of strain as global economic headwinds intensify.
While not among the continent’s absolute weakest, their depreciation underscores the region’s exposure to import costs, foreign debt obligations and external shocks.
Pressure on households and businesses
For ordinary citizens, a weaker local currency translates into a higher cost of living. Imported goods, from fuel to basic foodstuffs, become more expensive, eroding disposable incomes and reducing purchasing power.
Families find it increasingly difficult to maintain their living standards, while small businesses struggle as expenses rise faster than revenues.
In Tanzania, where inflation has moderated in recent months, policymakers remain concerned that further shilling depreciation could reignite price pressures.
Similar concerns are shared in Uganda, where the shilling has lost ground against the US dollar despite efforts by the central bank to stabilise the currency through interventions.
The debt burden challenge
Another major impact of weaker currencies is the rising cost of foreign debt servicing. Many East African countries – including Kenya, Tanzania and Uganda – have borrowed heavily in foreign-denominated loans to finance infrastructure projects.
When local currencies lose value, repayment obligations in dollars or euros become costlier, straining state budgets and diverting funds away from social services and development.
For example, Kenya’s debt-to-GDP ratio has remained high, and currency depreciation increases the pressure on government finances.
Uganda, which has ambitious infrastructure and energy projects in the pipeline, also faces the risk of rising repayment costs.
Investment and trade implications
Currency instability further undermines foreign investor confidence. International investors typically avoid volatile currencies for fear of capital losses, which worsens foreign exchange shortages and drives further devaluation.
This vicious cycle makes it harder for East African countries to attract long-term investment, even as they market themselves as gateways to Africa’s fast-growing markets.
On the trade front, while weaker currencies can theoretically boost exports by making local goods cheaper abroad, this benefit is often offset by the high import dependency of East African economies.
For instance, exporters may gain slightly, but rising input costs – from fuel to raw materials – erode margins and limit competitiveness.
Policy responses and the way forward
Regional governments are increasingly under pressure to strengthen macroeconomic management.
Central banks in Tanzania, Kenya, and Uganda have tightened monetary policies, while also drawing on foreign reserves to intervene in currency markets. However, such interventions are costly and offer only temporary relief.
Economists argue that the long-term solution lies in diversifying economies, boosting domestic production, and reducing overreliance on imports and external borrowing. Stronger regional integration through the East African Community (EAC) could also help cushion member states, by expanding intra-African trade and creating shared financial buffers.
The ranking of Africa’s weakest currencies is a stark reminder that currency volatility is not just a financial statistic – it is a human and business reality that shapes lives and livelihoods.
For East Africa, where governments are working to attract investment and sustain growth, stabilising currencies will be essential to building resilient economies.
Without decisive reforms, the region risks falling deeper into a cycle of inflation, debt distress, and economic uncertainty.
List of top 10 Weakest African Currencies (September 2025)
São Tomé & Príncipe — Dobra (STD)
Sierra Leone — Leone (SLL)
Guinea — Guinean Franc (GNF)
Uganda — Ugandan Shilling (UGX)
Burundi — Burundian Franc (BIF)
DRC — Congolese Franc (CDF)
Tanzania — Tanzanian Shilling (TSh)
Malawi — Malawian Kwacha (MWK)
Nigeria — Nigerian Naira (NGN) Rwanda — Rwandan Franc (RWF)
