Across Africa, central banks are walking a tightrope between curbing inflation and stimulating growth, with policy rates revealing just how costly it remains to borrow on the continent.
From Zimbabwe’s punishing 35% benchmark rate to Liberia’s relatively moderate 16.25%, borrowing conditions mirror each country’s economic fragility in 2025.
The varying monetary stances reflect local battles against inflation, currency depreciation, and fiscal strain.
Together, they paint a clear picture of Africa’s uneven progress toward price stability and credit accessibility.
Below are the African countries where it is most expensive to borrow money.
Aug-Sept – 17.25%
Liberia’s Central Bank cut its benchmark rate to 16.25% in October 2025, following back-to-back holds at 17.25% in August and September, according to Central Bank of Liberia. The move came as inflation fell to 4.70% in September, one of the lowest in West Africa.
The dollarized nature of the Liberian economy limits typical monetary policy effectiveness, but the easing shows an attempt to lower domestic borrowing costs and encourage investment.
The mild inflation outlook, improved fiscal management, and relative exchange-rate stability underpinned the decision. Nonetheless, structural constraints, low financial intermediation, and external vulnerability keep lending rates relatively high.
Aug – 17.00% (unchanged)
The Central Bank of The Gambia has maintained its policy rate at 17% since early 2024, reflecting a cautious stance amid moderate inflation of about 7.4%.
The decision to hold rates stable through August to Sept 2025 underscores confidence in the current inflation rate of 7.40%, supported by lower global commodity prices and careful fiscal management.
Still, given that The Gambia’s import dependence and small open-economy structure, policymakers remain cautious against external price shocks. The unchanged MPR suggests a balanced approach between price stability and supporting credit expansion.
Aug-Sep – 25.00%
The Central Bank of Congo (BCC) delivered a substantial 750-basis-point (7.5%) reduction in October 2025, bringing the policy rate to 17.5% from 25% maintained since August.
This aggressive easing followed progress in currency stabilization and a slowdown in inflation at 2.43%.
This aggressive easing followed progress in currency stabilization and a slowdown in inflation at 2.43%.
Improvement in mineral export receipts, government measures to regulate cobalt exports, and better fiscal discipline helped reduce inflationary pressures.
The rate cut is designed to boost credit growth and economic recovery, but risks remain tied to exchange-rate volatility and security challenges that could reignite inflation.
Aug 2025 – 21.75%
The Bank of Sierra Leone reduced its policy rate sharply from 21.75% in August to 18.75% in September 2025, following rapid disinflation. The country’s inflation rate fell to 5.36% in September, marking one of the strongest price stabilization improvements in Africa for 2025.
Lower food and fuel import prices, improved FX management, and fiscal restraint all contributed to this trend. The rate cut aims to stimulate credit to the private sector and encourage investment after a period of tight liquidity and slow growth.
The current rate remains relatively high to safeguard against potential external shocks and imported inflation risks.
Aug 2025 – 19.50%
Angola’s central bank reduced the policy rate to 19% in September 2025, extending its gradual easing cycle as inflation continues to moderate. Headline inflation slowed to 18.20% in September, supported by improved foreign exchange liquidity and tighter fiscal control.
The National Bank of Angola’s policy direction reflects confidence in the country’s macro reforms and oil-driven external stability. However, non-oil sector growth remains sluggish, and structural weaknesses persist.
The steady decline in rates through 2025 signals a shift toward growth support, though real borrowing costs remain high by regional standards due to credit risk and inflation persistence.
Aug-Sep – 22.00%
The Central Bank of Egypt (CBE) lowered its policy rate from 22% to 21% in October 2025, following evidence of sustained disinflation. Inflation eased to 12.50% in October, aided by improved supply conditions and stabilization under the IMF program.
This marks the second consecutive quarter of easing after prolonged tightening in 2023–2024. While domestic inflation risks persist due to energy price adjustments and exchange-rate liberalization, the CBE has prioritized growth amid a slowdown in private consumption and investment.
Still, interest rates remain high relative to pre-crisis levels, reflecting caution in managing inflation expectations in a heavily import-dependent economy.
Aug 2025 – 25.00%
Ghana’s central bank delivered a significant 350-basis-point rate cut between August and September 2025, reducing the policy rate from 25% to 21.5% as inflation fell sharply to 8.00% — its lowest level in three years.
The disinflation reflects improved food supply, stronger cedi performance, and fiscal consolidation under the IMF Extended Credit Facility program. The Bank of Ghana’s policy easing marks a shift from the tight stance maintained throughout 2023–2024 when inflation exceeded 40%.
The move aims to support credit growth and revive private-sector investment while keeping real rates positive. The MPR trend thus signals growing policy confidence in Ghana’s macro stability and debt restructuring progress.
Aug-Sept – 26.00% (unchanged)
Malawi’s policy rate has remained fixed at 26% across August, September, and October 2025, reflecting a wait-and-see approach by the Reserve Bank of Malawi amid persistently high inflation.
Inflation remains elevated at about 28.70%, driven by food shortages, currency weakness, and high import dependency. The kwacha’s depreciation continues to amplify price pressures, while recurrent droughts have disrupted agricultural output and food supply chains.
With inflation running well above target, the monetary authority maintains a tight stance to protect real incomes and anchor expectations, despite growth challenges. Limited fiscal room constrains complementary policy action, leaving interest rates as the primary tool for stabilizing macro conditions.
Aug – 27.50%
Nigeria’s Monetary Policy Rate eased slightly to 27% in September 2025, following a modest reduction from 27.5% in August, as the Central Bank of Nigeria (CBN) sought to balance price stability with economic recovery.
The moderation in inflation, which slowed to 18.02% in September 2025, encouraged the cautious cut. Still, real rates remain negative, indicating persistent inflationary pressures linked to exchange-rate volatility, high logistics costs, and structural supply constraints.