The Uganda Shilling has been ranked as Africa’s best-performing currency after appreciating by 6.1% over the past year, surpassing 23 other currencies across the continent. This remarkable growth was reported by Bloomberg, which tracks the performance of global currencies.
The Ministry of Finance attributes the Shilling’s strength to a combination of factors, including an increased inflow of US dollars from portfolio investors, which has outpaced corporate demand. The steady supply of foreign currency has contributed to the Shilling’s resilience against depreciation, ensuring a stable exchange rate.
A report released by the Ministry in February 2025 further emphasized that the continued strength of the Shilling plays a crucial role in stabilizing Uganda’s economy. With reduced currency volatility, businesses and investors enjoy a more predictable financial environment, promoting economic growth and attracting foreign direct investment.