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-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.
