Four African currencies that outperformed in the first half of 2026

The first half of 2026 tested African currencies as the US-Iran war rattled global financial markets, disrupted oil supplies and pushed energy prices sharply higher.

Although an interim ceasefire has since helped calm markets and eased fears of prolonged supply disruptions, the conflict left a lasting impact on many African economies that rely heavily on imported fuel. Brent crude, which surged above $100 a barrel at the height of the conflict, has since retreated to around $71 following the ceasefire agreement and expectations of improved oil supplies.

Read also: these-12-african-currencies-appreciated-despite-iran-war-shocks

The economic shock was felt across much of the continent. In its African Economic Outlook 2026, Afreximbank noted that at the end of March 2026, the currencies of 29 African countries had weakened against the US dollar, with 10 of them depreciating by more than two percentage points compared with baseline projections. It warned that “the shock has fueled currency depreciations across Africa”, adding that “Africa’s oil importing countries are hit most through higher petroleum import bills and depreciating currencies.” The report further noted that “the direct pass through of rising domestic pump prices and transport costs have fueled inflationary pressures in several countries.”

Read also: five-african-currencies-with-the-biggest-declines-amid-middle-east-war

Afreximbank also cautioned that “African currencies have depreciated, raising prospects of increased debt service and refinancing costs as well as fiscal vulnerabilities.” It warned that if the external shock persists, it “could tighten global financial conditions, weaken fiscal balances, and put further pressure on foreign exchange reserves.”

Despite those headwinds, a handful of African currencies managed to outperform. According to data compiled by real time trading platform African Markets, 13 of the 17 major African currencies tracked depreciated against the United States dollar between January and the end of June, while only four recorded gains. The strongest performers were countries that benefited from stronger commodity exports, improving investor confidence and better foreign exchange management.

Here are the four African currencies that outperformed in the first half of 2026.

Zambian kwacha

The Zambian kwacha emerged as Africa’s best performing currency in the first half of the year, appreciating by 7.73 percent against the dollar.

The currency strengthened from 19.49 kwacha per dollar in January to 18.04 by the end of June. The gains were driven by stronger copper export earnings, improving investor confidence following expectations of sustained economic recovery.

Nigerian naira

The Nigerian naira ranked as the continent’s second best performing currency, appreciating by 3.36 percent during the period.

The currency strengthened from N1,422.63 per dollar in January to N1,374.76 at the end of June. The appreciation reflected improved foreign exchange liquidity, increased foreign portfolio inflows and the impact of ongoing reforms aimed at improving efficiency in Nigeria’s foreign exchange market.

Read also: kwacha-naira-lead-africas-currency-gains-in-2026

South African rand

South Africa’s rand appreciated by 0.90 percent against the dollar during the first six months of the year.

The currency strengthened from 16.50 per dollar in January to 16.35 by the end of June. Higher demand for emerging market assets, resilient mineral exports and improving investor confidence helped support the rand despite domestic economic challenges.

Namibian dollar

The Namibian dollar appreciated by 0.66 percent during the period, strengthening from 16.50 per dollar to 16.39.

Because Namibia’s currency is pegged to the South African rand, its performance closely mirrored that of its larger neighbour, benefiting from stronger regional investor sentiment and relative stability in Southern African financial markets.

Currencies that weakened

Thirteen African currencies lost ground against the dollar during the first six months of 2026.

Tanzania’s shilling recorded the sharpest decline among the currencies tracked, depreciating by 5.62 percent, followed closely by Botswana’s pula, which weakened by 5.16 percent, and Ghana’s cedi, which lost 5.46 percent.

Zimbabwe’s ZiG depreciated by 4.08 percent, while Egypt’s pound weakened by 3.90 percent. The Tunisian dinar lost 2.43 percent, the CFA franc declined by 2.11 percent, and the Moroccan dirham depreciated by 1.83 percent.

Elsewhere, Uganda’s shilling fell by 1.21 percent, Mauritius’ rupee declined by 1.20 percent, Kenya’s shilling weakened by 0.90 percent, Rwanda’s franc lost 0.78 percent, while Malawi’s kwacha recorded the smallest depreciation at 0.21 percent.