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Cedi Appreciation Eases Business Costs as Ghana Leads Sub-Saharan Inflation Slowdown — S&P Global
Currency gains, particularly in Ghana, are helping cool business costs across sub-Saharan Africa, with price pressures in September 2025 easing to their weakest levels since 2020, according to S&P Global’s latest Purchasing Managers’ Index (PMI) commentary.
The report highlights that five of the seven tracked economies saw their currencies strengthen during the first nine months of the year, a trend driven by softer U.S. dollar prices, improved fiscal discipline, and renewed access to external credit markets.
“The Ghanaian cedi and Zambian kwacha have each appreciated by 15% against the U.S. dollar so far this year, while the South African rand and Nigerian naira have also seen gains,” said Andrew Harker, Director of Economic Indicators & Surveys at S&P Global Market Intelligence.
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The cedi’s strong performance has helped ease input cost pressures in Ghana’s private sector, where firms had previously battled with sharp price surges linked to currency depreciation and global supply shocks. The report noted that Ghana and Zambia both recorded periods of outright declines in purchasing prices this year, marking a rare reprieve in economies historically burdened by inflation volatility.
In Nigeria, input price growth slowed to its weakest pace since March 2020 during the third quarter, though inflation remained elevated. Across the region, selling costs rose at the slowest rate in five years despite a marginal uptick from August levels.
S&P Global explained that normally, exchange rate depreciation feeds through to higher costs for imported goods and services priced in dollars. “However, the recent currency strength has reversed that dynamic, bringing measurable relief to businesses and consumers,” the report said.
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