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 – 26.00% (unchanged)
Malawi’s policy rate has remained fixed at 26% across August, September, and October 2025, reflecting a wait-and-see approach by the Reserve Bank of Malawi amid persistently high inflation.
Inflation remains elevated at about 28.70%, driven by food shortages, currency weakness, and high import dependency. The kwacha’s depreciation continues to amplify price pressures, while recurrent droughts have disrupted agricultural output and food supply chains.
With inflation running well above target, the monetary authority maintains a tight stance to protect real incomes and anchor expectations, despite growth challenges. Limited fiscal room constrains complementary policy action, leaving interest rates as the primary tool for stabilizing macro conditions.
