10 Weakest Currencies in Africa (Lowest Value Currency in 2024)

Welcome to this publication about the top 10 weakest currencies in Africa in 2024, via Afrokonnect. The landscape of Africa in 2024 is marked by a diverse range of currencies. Each currency represents the financial difference of their respective nations.

However, various African currencies are struggling with significant challenges. So, this has rendered them among the weakest in the continent. These currencies face several factors such as inflationary pressures, fiscal imbalances, and geographical uncertainties.

All these factors help depreciate these currencies against major global currencies. In this article will focus on analysing the top 10 weakest currencies in Africa in 2024. Our analysis will lead to explore the economic conditions leading to the depreciation of these currencies.

Factors such as inflation rates and monetary policies play a significant role in a currency’s valuation. These factors must be favorable to make it attractive to investors and trade partners.

Importance of analyzing weakest currencies in 2024

The valuation of currencies play a pivotal role in our present global economic landscape, it helps in shaping the fortunes of nations and impacting international trade and investment. The analysis of the top 10 weakest currencies in Africa in 2024 holds a crucial place in the present economic landscape:

1) Macroeconomic Stability:

The weakest currencies in Africa are related to macroeconomic imbalances. Studying these currencies can help economists identify factors affecting their values. These factors include inflation rates, monetary policies, Etc. Understanding these factors can help enable policymakers to implement policies. These policies can help restore stability and sustainable growth.

2) Trade and Investment Decisions:

Currency value fluctuations can negatively affect businesses that engage in international trade. It can negatively affect the business competitiveness and profitability. This will affect exports positively as goods are affordable to foreign buyers.

It also negatively affects imports as it causes an increase in production expenses and consumer prices. Similarly, informed analysis of weak currencies can help businesses make strategic decisions. This ensures that businesses manage currency risks effectively.

3) Foreign Aid and Investments:

Developing nations are mostly associated with weak currencies. These nations rely on foreign investments to fuel their development agendas. A thorough analysis of the recipient country currency has an impact for investors. It guides organizations and investors in the allocation of aid and investments to recipient countries. This enables maximum impact and sustainability to these countries.

4) Regional and Global Economic Implications:

A Weak currency can cause negative economic effects for the country globally. Effects such as financial stability and regional trade dynamics are associated with a country’s currency. It also affects the country’s performance among neighboring currencies. An in-depth analysis of the top 10 weakest currencies in Africa in 2024 aids in creating strategies. These strategies are crucial to mitigate adverse effects.

5) Currency Crisis Prevention:

A proactive approach to analyze weak currencies can help prevent a currency crisis. Early identification of warning signs can help policymakers take timely measures. These measures is taken early can help avert severe economic disruptions and prevent loss of investor confidence.

6) Social and Humanitarian Impact:

A weak currency can lead to rising inflation and a high cost of living. This has a negative impact on the lives of citizens. It is important to understand the drivers of a currency weakness, this will enable policymakers devise strategies to prevent some vulnerable groups from the adverse effects.

Economic Factors Affecting Currency Strength

Currency strength is crucial to determining a country’s economic capacity. A strong currency is needed for global investor confidence and several benefits. Also, a weak currency can boost exports but also leads to various economic challenges.

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This section of the article will focus on the economic factors that affects a currency strength:

1) Inflation Rate:

The role of the inflation rate in shaping a currency’s strength is very pivotal. The higher the inflation, the lesser the purchasing power of the currency. A high inflation rate also lead to a decrease of confidence among investors and consumers. Note: Countries with lesser inflation rates experience stronger currencies. However, countries with higher inflation rates have weaker currencies.

2) Fiscal Policies:

Policies made by the government such as taxes and budget deficits can influence the currency’s strength. Sound fiscal policies such as a balanced budget can contribute to a stable currency. However, bad fiscal policies like budget deficits can lead to inflation and a weak currency.

3) Trade Balance:

A country’s imports must be balanced with its exports to ensure a strong currency. A country that exports more causes its currency to be in high demand hence strengthening it. Conversely, a country that depends on imports needs foreign currency hence devaluing its.

4) Economic Growth and GDP Performance:

A robust growth in a country’s economy and a strong Gross Domestic Product (GDP) can strengthen a country’s currency. A strong GDP can inspire investors’ confidence which affects a country’s currency positively.

5) Foreign Debts and Political Instability:

A country with high foreign debt faces enormous currency depreciation risks. Also, a country with high level of political instabilities can deter foreign investment. This weakens the currency massively.

Top 10 Weakest Currencies in Africa in 2024

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1) Sierra Leone

  • Currency: Leone (SLL)

The country is located in the West Africa region of Africa. The Covid-19 Pandemic had a negative effect on the country’s economy massively hence its top position on this list.

Currency Exchange Rate: $1 = 20,969.5 SLL

2) Guinea

  • Currency: Guinean Franc (GNF)

The country is located in the western region of Africa and is a French speaking country. The country is faced with numerous economic challenges hence its top position in the rankings.

Currency Exchange Rate: $1 = 8603 GNF

3) Madagascar

  • Currency: Malagasy Ariary (MGA)

The country is faced with low productivity coupled with deteriorating market accessibility. This has hindered the country from achieving economic growth.

Currency Exchange Rate: $1 = 4510 MGA

4) Uganda

  • Currency: Ugandan Shilling (UGX)

Uganda is a Sub-Saharan African country but that hasn’t hindered its poverty growth. The government anti-poor policies have had little or no effect on the masses. The Covid-19 Pandemic destroyed the little glimmer of hope Uganda might have had.

Currency Exchange Rate: $1 = 3,630.97 UGX

5) Burundi

  • Currency: Burundian Franc (BIF)

Burundi is a landlocked country in Africa. The country GDP is declining due to the political instability witnessed in the country. The country is also home to an underdeveloped manufacturing sector.

Currency Exchange Rate: $1 = 3,672.46 BIF

6) Congo

  • The Currency: Congolese Franc (CDF)

The country has been occupied with numerous wars and political instability. This had a crippling effect on the economy hence weakening the currency.

Currency Exchange Rate: $1 = 2,481 CDF

7) Tanzania

  • Currency: Tanzanian Shilling (TZS)

The country is faced with food scarcity and an increasing population. This has pushed many below the poverty level as majority of Tanzanians live below $1.90 a day.

Currency Exchange Rate: $1 = 2,455.18 TZS

8) Rwanda

  • Currency: Rwandan Franc (RWF)

Rwanda is a rural country as only 8% of its population live in urban areas. The war from 1990 – 1994 devastated the economy massively. The government has begun to implement sound fiscal policies but the lack of arable land is crippling the economy.

Currency Exchange Rate: $1 = 1,193.19 RWF

9) Malawi

  • Currency: Malawian Kwacha (MWK)

Malawi economy depends on mainly agriculture and exports of commodities. This has turned soar as a massive drought has befallen the country and crippled the economy massively.

Currency Exchange Rate: $1 = 1,048.88 MWK

10) Nigeria

  • Currency: Nigerian Naira (NGN)

Nigeria’s currency weakness is due to numerous issues such as inadequate infrastructure, lack of investments, massive corruption, Etc.

Currency Exchange Rate: $1 = 1,450 NGN

Weakest Currencies in Africa in 2024


The strength of a country’s currency is tied to its economic policies and GDP growth. It is important to understand the factors affecting the strength of a currency. This will enable policymakers to make policies which will ensure stable currencies.

Additionally, collaboration between countries and international organizations is also essential to stabilize currencies which will enable economic growth and prosperity. Thanks for reading and I hope to see you again on Afrokonnect.ng.


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