Top 10 African countries expected to maintain low inflation in 2025

Some African countries are projected to experience minimal inflation increases, maintain stable consumer prices and economic conditions in 2025.

This stability is driven by factors such as currency stability, strong agricultural sectors, government policies, and regional economic cooperation. Nations with stable currencies experience reduced exchange rate volatility, while those with significant agricultural production benefit from lower food price inflation.

Fiscal measures, including subsidies and economic interventions, further help stabilise essential goods and services. Additionally, economic unions like WAEMU ensure policy coordination and controlled inflation.

A low inflation outlook suggests easing price pressures, benefiting industries and consumers by allowing households to maintain purchasing power, and improving living standards, particularly for low and moderate-income groups.

Predictable price levels encourage investment and savings, fostering economic growth and making these nations attractive to both local and international investors. Stable inflation also strengthens national currencies, reducing import costs and improving trade balances, ultimately contributing to long-term economic stability and business growth.

According to the International Monetary Fund, here are the top 10 African countries expected to maintain low inflation in 2025

1. Djibouti – 1.5%

Djibouti’s inflation remains low due to its currency peg to the US dollar, which helps stabilise prices and minimise fluctuations in the economy.

2. Comoros – 1.5%

Comoros benefits from its monetary arrangement with the euro, ensuring exchange rate stability and reducing inflationary pressures on essential goods and services.

3. Benin – 2.0%

Benin’s economic ties to the West African Economic and Monetary Union (WAEMU) contribute to controlled inflation. The country’s agricultural sector also plays a key role in stabilising food prices.

4. Burkina Faso – 2.0%

Burkina Faso maintains stable inflation through disciplined monetary policies and a resilient agricultural economy, which reduces dependency on expensive imports.

5. Cabo Verde – 2.0%

Cabo Verde’s fiscal policies aim to stabilise the cost of living, with government efforts focused on controlling inflation and ensuring economic resilience.

6. Guinea-Bissau – 2.0%

Guinea-Bissau benefits from WAEMU’s monetary policies, which help maintain inflation at moderate levels, ensuring price stability across sectors.

7. Mali – 2.0%

Mali’s integration with WAEMU and its reliance on agricultural output contributes to a steady inflation rate, preventing sharp price increases.

8. Senegal – 2.0%

Senegal’s monetary and fiscal policies focus on maintaining low inflation, ensuring steady consumer prices and economic predictability.

9. Togo – 2.0%

Togo’s participation in WAEMU provides economic stability and coordinated monetary policies that help keep inflation rates low.

10. Gabon – 2.2%

Gabon’s inflation rate is influenced by government subsidies, oil price movements, and fiscal policies designed to regulate consumer prices and market stability.

Chisom Michael

Chisom Michael is a data analyst (audience engagement) and writer at BusinessDay, with diverse experience in the media industry. He holds a BSc in Industrial Physics from Imo State University and an MEng in Computer Science and Technology from Liaoning Univerisity of Technology China. He specialises in listicle writing, profiles and leveraging his skills in audience engagement analysis and data-driven insights to create compelling content that resonates with readers.

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