With inflation remaining a major challenge across African economies, central banks have adopted aggressive monetary tightening measures to stabilize currencies and contain rising prices.
According to data compiled by Nairametrics, Nigeria, Zimbabwe, and Ghana are among the countries with the highest Monetary Policy Rates (MPR) on the continent.
The MPR, a benchmark interest rate for lending and borrowing, remains at elevated levels across Africa, reflecting the difficult trade-off between stabilizing prices and promoting growth.
As of September 2025, Zimbabwe leads with a staggering 35% rate, while Nigeria ranks second at 27%. Ghana, Angola, and others also feature prominently. These high rates make borrowing costly for businesses and households, further slowing investment and consumption.
Below is a country-by-country snapshot of the Top 10 African countries with the most expensive borrowing rates, alongside recent inflationary trends and policy decisions.
The Bank of Ghana’s Monetary Policy Committee (MPC) announced a significant reduction in the benchmark policy rate, cutting it by 350 basis points from 25% to 21.5%.
This marks the second major rate cut in 2025, as the central bank intensifies efforts to stimulate credit growth and support the country’s ongoing economic recovery.
Governor of the Bank, Dr. Johnson Asiama, made the announcement during a press briefing following the conclusion of the 126th MPC meeting held on September 17.
The apex bank attributed the decision to a sustained decline in inflationary pressures and the expectation of continued fiscal consolidation.
“This policy adjustment reflects our confidence in the trajectory of macroeconomic reforms and the improving inflation outlook,” Dr. Asiama stated.
The latest rate cut follows a 300 basis point reduction in July, when the policy rate was lowered from 28% to 25%. Earlier in March, the central bank had raised the rate slightly from 27% to 28%, before holding it steady during the May meeting.
Ghana’s inflation has shown a sharp downward trend in recent months, falling to 11.5% year-on-year in August. The central bank projects that inflation will enter its target band of 6% to 10% before the end of the year, bolstering confidence in the effectiveness of its monetary policy stance.
However, the recent depreciation of the Ghanaian cedi has introduced new challenges. The currency fell by 15% against the U.S. dollar in the third quarter, making it the second-worst performer globally.
