By African Exponent
Africa may not be one of the wealthiest continents in the world because of how much disenfranchisement and colonialism the continent has faced. However, many post-independence countries have worked hard to restore and create valuable economies that can stand alongside some of the strongest and oldest currencies globally. Below is the top ten list of African countries with the strongest currencies.
Currencies and their values fluctuate constantly. Due to their ever-changing nature, exchange rates are never the same for too long; therefore, it is advisable to observe trends regularly to ensure accuracy. This list of ten African countries with the strongest currencies has been analyzed and compared to the universally accepted currency for trading- the dollar.
1. Tunisian Dinar
The Tunisian Dinar tops the list with a currency that attracts many foreign investors. Tunisia’s well-structured import-export policies play a vital role in the strength of its currency, with its petroleum and agricultural exports significantly contributing to the country’s Gross Domestic Product (GDP).
2. Libyan Dinar
The Libyan Dinar’s strict monetary policy has ensured that the currency remains one of the strongest and stable currencies in Africa despite the ongoing conflicts following the death of leader Muammar Gaddafi. As a country rich in natural resources, it relies on oil exportation. Libya also has resources like gold and silver.
3. Ghanaian Cedi
Ghana was admirably able to survive the 2008 foreign exchange crisis and has grown stronger. Coming in third, the Ghanaian Cedi is the currency for both Ghana and North Togo. Ghana’s GDP is the biggest in the West Africa region, contributing to the strength of the Cedi.
4. Moroccan Dirham
The Moroccan Dirham is one of the oldest currencies in Africa, and not only is it used in Morocco but several neighboring countries in Western Sahara. The Dirham is pegged to both the US Dollar and the Euro, which means it is tied to these currencies and stabilizes the value of its currency to avoid exchange rate fluctuations. In addition, Morocco’s proximity to Europe puts the country in an advantageous position business-wise.
5. Botswana Pula
The Pula is pegged to the South African Rand and has been the official currency of Botswana since the country’s independence. The strength of the Pula can be attributed to the country’s strong economy and political structure with significant industries in mining and cattle processing.
6. Seychelles Rupee
Being a popular tourist destination, Seychelles benefits immensely from the large volume of foreign tourists who flock to the country’s shores yearly. In addition, a strict monetary policy and an exemplary import-export sector also contribute to Seychelle’s sixth position on the list.
7. Namibian Dollar
The Namibian Dollar replaced the South African Rand as Namibia’s official currency in 1993. However, it is still pegged to the Rand and can be exchanged on a 1:1 basis locally. Mining accounts for 20% of the country’s GDP as Namibia is Africa’s primary source of gem-quality diamonds. Namibia is also a considerable exporter of zinc, lead, tin, tungsten, silver, and uranium.
8. Eritrean Nakfa
The Eritrean Nakfa is one of the most significant currencies in Africa and has a fixed exchange rate. In addition, an abundance of fertile lands makes Eritrea perfect for a booming agricultural economy.
9. South African Rand
South Africa’s economy is one of the fastest-growing economies in Africa, with the country’s GDP growing at a rate of 4,6% yearly. A highly developed country, South Africa is one of the world’s largest exporters of gold, platinum, and many other natural resources and the continent’s largest stock exchange.
10. Swazi Lilangeni
eSwatini is pegged to South Africa and depends on South Africa for 70% of its imports and 65% of exports. Agriculture, forestry, and mining account for about 13% of the country’s GDP, and textiles and sugar-related processing make up 37%. eSwatini exports mainly consist of sugar, wood, pulp, cotton yarn, and citrus.