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 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.
