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 – 27.50%
Nigeria’s Monetary Policy Rate eased slightly to 27% in September 2025, following a modest reduction from 27.5% in August, as the Central Bank of Nigeria (CBN) sought to balance price stability with economic recovery.
The moderation in inflation, which slowed to 18.02% in September 2025, encouraged the cautious cut. Still, real rates remain negative, indicating persistent inflationary pressures linked to exchange-rate volatility, high logistics costs, and structural supply constraints.
Since late 2023, the CBN has undertaken aggressive tightening to tame inflation driven by fuel subsidy removal and currency reforms. However, by mid-2025, as fiscal and FX reforms began yielding modest stability, the central bank shifted toward a more supportive stance to stimulate credit and investment. The naira’s relative stabilization and lower imported inflation provided space for this adjustment.
