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.
