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Exporters report gradual recovery amidst depreciation of local currencies in Africa
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Shardul Nautiyal, Mumbai
December 03 , 2025
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Despite lingering cash flow strains for MSMEs, pharma exporters have reported gradual recovery amidst depreciation of local currencies in Africa supported by RBI's rupee trade mechanisms. Exporters have been urging the Government for sustained policy support to counter inflation and rising import cost due to currency depreciation.
The fall in local currencies across Africa over the past one year has been making pharmaceutical imports more expensive, leading to reduced demand.
According to sources, as of early December 2025, African currencies such as the Nigerian naira (around 1,440 NGN per USD), Ghanaian cedi, and others continue to face depreciation pressures amid ongoing economic challenges, though some stabilization efforts are evident with the naira showing minor daily fluctuations and a 13.85 % strengthening annually. India's pharmaceutical exports to Africa have plateaued near record highs at approximately $3.93 billion for the year, with a slight 0.42% dip in FY 2024-25 but signs of rebound in key markets like Nigeria (up 45% in April 2025) and Ghana (up 22.64%).
From earlier this year, Africa’s pharmaceutical industry has been facing a severe crisis due to depreciation of local currencies, coupled with geopolitical tensions leading to disruption in trade. Indian pharma exporters also highlighted the drastic decline in pharmaceutical exports, which plummeted by up to 50% in some regions.
An industry expert associated with the development highlighted that the impact is not limited to sales but has also created a significant cash flow crunch in the industry.
A significant decline has been reported in local currencies of Nigeria, Ghana, Egypt, Zambia, and others, where currencies like the naira, cedi, and pound have seen substantial depreciation against the US dollar, leading to rising import costs.
This has been attributed to factors like global economic instability, high debt levels, commodity price fluctuations, and a strong US dollar.
Contributing factors include global economic shocks, fluctuations in commodity prices (especially for oil-producing countries), political instability in certain regions, and reliance on foreign currency for imports.
Experts have proposed solutions like promoting intra-African trade to reduce reliance on the US dollar, developing local currency markets, and implementing policies to attract foreign investment.
According to the Union commerce ministry, Africa accounted for 18% of India's USD 19.9 billion pharmaceutical exports in FY23. While some nations, including South Africa, Kenya, and Tanzania, recorded growth in imports, others such as Nigeria, Ethiopia, and Uganda saw sharp declines.
Pharma exporters are urging the Indian government to introduce financial relief measures and stabilize trade mechanisms to overcome this situation.
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