Africa has strengthened its economic resilience with a 7 percent increase in foreign exchange reserves, reaching a record $505.5 billion (approximately Sh65.5 trillion) by the end of 2025. This growth, highlighted in the 2026 African Trade Report by Afreximbank, reflects improved macroeconomic stability despite global uncertainties.

The continent's reserves grew from $468.2 billion (Sh60.6 trillion) in 2024, supported by stabilizing commodity prices, enhanced export earnings in several countries, and policy measures attracting greater investment inflows.

Impact on Economic Stability

The increase in reserves provides central banks with greater capacity to stabilize currencies, finance imports, and shield economies from external shocks. Africa’s average import cover improved to between 4.5 and 4.9 months, well above the International Monetary Fund’s recommended three-month benchmark.

Afreximbank credits this progress to countries that upheld credible macroeconomic policies and boosted export performance, enabling them to build reserve buffers despite challenges such as rising debt and tighter external financing.

Reserve Distribution and Currency Trends

  • Libya leads with $87.9 billion (Sh11.4 trillion) in reserves.
  • South Africa follows with $71.4 billion (Sh9.25 trillion).
  • Other top holders include Algeria ($55.9B), Egypt ($47.5B), Morocco ($45.0B), and Nigeria ($44.5B).
  • Kenya holds $11.3 billion (Sh1.46 trillion), while Ghana has $11.0 billion (Sh1.42 trillion).

Several African currencies showed improved stability in 2025. Ghana’s cedi appreciated by 25.7 percent, South Africa’s rand strengthened by 12.1 percent, and Kenya’s shilling along with Zimbabwe’s dollar maintained relative stability due to enhanced foreign exchange liquidity and policy interventions.

Challenges Ahead

Despite these gains, the report notes uneven reserve accumulation across the continent. Countries grappling with high external debt, widening fiscal deficits, and limited access to external financing continue to face currency depreciation pressures.

Afreximbank emphasizes the need for sustained efforts to consolidate these gains through:

  • Strengthening export competitiveness
  • Improving debt sustainability
  • Deepening domestic financial markets
  • Maintaining credible macroeconomic policies to reduce vulnerability to shocks