African economies continue to grapple with some of the world’s highest interest rates as central banks maintain tight monetary policies to combat inflation, currency pressures and global economic uncertainty.
The prolonged geopolitical tensions in the Middle East, particularly the Iran conflict, have disrupted global energy and commodity supply chains, forcing many African central banks to delay planned interest rate cuts amid fears of imported inflation.
The surge in global crude oil prices has significantly increased import costs for many African countries, putting pressure on foreign exchange reserves, weakening local currencies and prompting policymakers to retain high benchmark lending rates.
Analysts say the restrictive monetary stance is aimed at controlling inflation, stabilising exchange rates and preventing capital flight despite concerns over its impact on borrowing costs, investment and economic growth.
The Monetary Policy Rate (MPR), set by each country’s central bank, serves as the benchmark interest rate that influences lending, borrowing and overall credit conditions within the economy.
Top 10 African Countries With the Highest Interest Rates
10. The Gambia – 14%
The Central Bank of The Gambia maintained its benchmark interest rate at 14 per cent after reducing it from 16 per cent in December 2025. The decision followed a slight increase in inflation, which rose to 7.6 per cent in June 2026.
9. Ghana – 14%
The Bank of Ghana retained its policy rate at 14 per cent during its July 2026 meeting, pausing its monetary easing cycle due to concerns over rising fuel prices, utility tariffs and global economic uncertainty.
8. Angola – 15.75%
Angola cut its benchmark interest rate by 125 basis points to 15.75 per cent as inflation continued to ease and non-oil economic growth strengthened.
7. Ethiopia – 16%
The National Bank of Ethiopia increased its benchmark rate from 15 per cent to 16 per cent to address rising inflation and higher international oil prices while transitioning to a market-driven monetary policy framework.
6. Liberia – 16%
Liberia’s central bank reduced its policy rate slightly from 16.25 per cent to 16 per cent, citing improved inflation expectations, stable exchange rates and stronger foreign reserves.
5. Sierra Leone – 16.75%
Sierra Leone maintained its benchmark interest rate at 16.75 per cent as authorities continued efforts to contain inflation and cushion the economy against external shocks.
4. Egypt – 19%
The Central Bank of Egypt retained its benchmark interest rate at 19 per cent while monitoring inflation trends and the impact of global energy market developments.
3. Malawi – 24%
Malawi maintained its policy rate at 24 per cent despite easing inflation, with authorities seeking to stabilise the local currency and contain persistent inflationary pressures.
2. Nigeria – 26.5%
Nigeria retained its Monetary Policy Rate (MPR) at 26.5 per cent during the latest Monetary Policy Committee meeting, keeping the country as the second-highest interest rate economy in Africa.
The Central Bank of Nigeria (CBN), led by Governor Olayemi Cardoso, cited geopolitical tensions in the Middle East and lingering inflation risks as key reasons for maintaining the tight monetary stance.
The current rate follows a 50-basis-point reduction from 27 per cent earlier in 2026 after headline inflation eased marginally.
1. Zimbabwe – 30%
Zimbabwe recorded Africa’s highest benchmark interest rate at 30 per cent despite implementing a significant 500-basis-point reduction from 35 per cent.
The Reserve Bank of Zimbabwe said the high rate remains necessary to protect the country’s currency, curb speculative borrowing and maintain financial stability amid persistent economic challenges.
High Interest Rates Reflect Africa’s Inflation Battle
Economists say African central banks are expected to maintain relatively high interest rates until global inflationary pressures ease and geopolitical tensions stabilise.
While the restrictive monetary policies are helping to protect currencies and contain inflation, they are also increasing borrowing costs for businesses and households, potentially slowing investment, job creation and economic growth across the continent.
