Top 10 African Countries With the Lowest External Reserve Growth
Low growth or stagnation in the Federal Reserve frequently indicates larger economic uncertainty. This might cause heightened volatility in global financial markets, influencing investment flows and currency rates.
For African countries that rely heavily on foreign finance and commerce, such volatility can result in unanticipated currency fluctuations and financial instability. This uncertainty can discourage foreign investment and complicate financial planning for enterprises and governments.
According to Afreximbank’s African Trade Report 2024, which examines the climate implications of AfCFTA implementation, commodity prices significantly influence currency rates and external reserves.
The report also revealed that in 2023, Africa’s foreign exchange assets increased by an estimated 2.6% year on year, reaching US$411.9 billion, compared to a 2.3% decline to US$401.3 billion in 2022.
This improvement is attributed to investments in greenfield projects, support from international and regional development financing organizations, bilateral partnerships, and increased tourism and remittances.
With that said, here are the 10 countries that recorded the lowest growth in its external reserves in 2023, according to Afreximbank’s trade report.
This list shows the smallest overall growth in federal reserves within a one year span and not the countries with the lowest overall federal reserves.
| Rank | Country | Reserve growth in 2023 (%) |
|---|---|---|
| 1. | Zimbabwe | -63.5 |
| 2. | Niger | -55.0 |
| 3. | Burundi | -51.2 |
| 4. | Sudan | -50.0 |
| 5. | Burkina Faso | -45.5 |
| 6. | Ethiopia | 30.3 |
| 7. | Nigeria | -26.5 |
| 8. | Gabon | -23.0 |
| 9. | Sierra Leone | -11.8 |
| 10. | Ghana | -10.8 |
