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 – 25.00%
Ghana’s central bank delivered a significant 350-basis-point rate cut between August and September 2025, reducing the policy rate from 25% to 21.5% as inflation fell sharply to 8.00% — its lowest level in three years.
The disinflation reflects improved food supply, stronger cedi performance, and fiscal consolidation under the IMF Extended Credit Facility program. The Bank of Ghana’s policy easing marks a shift from the tight stance maintained throughout 2023–2024 when inflation exceeded 40%.
The move aims to support credit growth and revive private-sector investment while keeping real rates positive. The MPR trend thus signals growing policy confidence in Ghana’s macro stability and debt restructuring progress.
