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 – 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.
