Top 10 African countries with the highest interest rates in July 2026

African economies are currently grappling with some of the highest interest rates in the world.

This aggressive monetary tightening comes on the heels of the widening Iran war, which has sent shockwaves through global energy and commodity supply chains.

Fearing a massive wave of imported inflation, central banks across the continent have been forced to put their long-awaited rate cuts on ice.

The escalating conflict in the Middle East has directly caused a severe surge in international crude oil prices. This surge places tremendous pressure on African import bills, which rapidly depletes foreign reserves and triggers domestic currency devaluations.

Consequently, African monetary policymakers find themselves cornered, compelled to maintain restrictive, high-yield stances to protect their fragile macroeconomic frameworks from global volatility.

To withstand these external pressures, central banks rely heavily on their benchmark lending rates to control internal market liquidity. This strategic positioning serves a dual purpose: defending local currencies against capital flight while preventing escalating energy costs from spilling over into broader domestic price indexes.

As long as geopolitical tensions threaten trade routes, the continent’s monetary landscape is expected to remain firmly restricted.

The Monetary Policy Rate (MPR) serves as the fundamental benchmark interest rate set by a nation’s central bank. This rate acts as the foundational baseline for all borrowing, lending, and credit pricing structures within the domestic financial system.

Essentially, it dictates the exact premium at which the apex bank provides short-term liquidity and overnight loans to commercial financial institutions.

Here are 10 African countries with the highest interest rates as of July 2026.

10. The Gambia — 14.00%

The Central Bank of The Gambia has firmly maintained its benchmark monetary policy rate at 14.00% during its recent review cycles. This current percentage reflects a notable holding pattern that has been strictly sustained since February 2026. The rate was initially pulled down from a much higher threshold of 16.00% recorded in December 2025.

Policymakers chose to keep the key rate completely flat to strike a delicate balance between local currency dynamics and broader macroeconomic stabilization. This 14.00% marker represents the lowest benchmark interest level documented in the West African nation since February 2023.

This cautious stance is reinforced by recent domestic pricing data, which shows a slight upward trend in living expenses. The Gambia’s headline inflation rate edged upward to 7.60% in June 2026, climbing from the 7.50% recorded in the preceding month of May. This upward tick justifies the central bank’s decision to halt further rate cuts until domestic prices stabilize completely.

9. Ghana — 14.00%

The Bank of Ghana chose to maintain its core monetary policy rate at 14.00% during its July 2026 monetary policy committee meeting. This decision marks a significant pause in the bank’s aggressive easing cycle that defined the earlier months of the year. The pause indicates that Ghanaian policymakers are growing increasingly wary of shifting global market conditions.

The Governor of the Bank of Ghana and Chairman of the MPC, Dr. Johnson Pandit Asiama, announced the rate retention following the committee’s 131st statutory meeting in Accra. He emphasized that the committee resolved to hold the rate steady due to renewed global uncertainties. Specifically, the bank is preparing for potential inflationary pressures driven by rising fuel costs and utility tariff adjustments.

This holding pattern comes after an aggressive easing streak where the apex bank successfully halved its policy rate from a peak of 28.00% in May 2025. This unwinding of years of tight monetary policy was initially justified by a sharp, sustained period of disinflation. Furthermore, the broader economy shows strong resilience, with Ghana’s real Gross Domestic Product (GDP) growing by an impressive 6.40% in the first quarter of 2026.

8. Angola — 15.75%

The National Bank of Angola chose a different path by cutting its key interest rate by 125 basis points to 15.75% at its July 2026 MPC meeting. This reduction represents the second formal rate cut implemented by the southern African nation over the course of 2026. Policymakers justified the looser stance by pointing to easing domestic inflation and an improving national economic outlook.

Official data shows that annual headline inflation slowed down to 10.11% in June, down from the 10.88% recorded in May. The Governor of the central bank, Manuel Tiago Dias, stated that domestic price pressures are expected to keep easing over the coming months. However, he warned that significant uncertainties still remain due to the ongoing geopolitical conflicts in the Middle East.

Angola’s rate reduction is strongly supported by robust growth outside of its traditional petroleum operations. Non-oil economic sectors expanded by a healthy 6.20% during the first quarter of 2026, driving a total overall GDP growth rate of 5.30%. This strong economic performance gives the central bank extra room to lower borrowing costs without risking immediate currency collapse.

7. Ethiopia — 16.00%

The National Bank of Ethiopia (NBE) implemented an aggressive policy shift by raising its main benchmark interest rate to 16.00% on July 13, 2026. This urgent move represents a clear step up from the previous rate of 15.00% that had been maintained by the apex bank. The decision was fast-tracked in response to accelerating domestic inflation and surging international oil prices.

This rate hike marks the very first formal revision of Ethiopia’s main policy benchmark since July 2024. Alongside the rate increase, the National Bank of Ethiopia took the bold step of completely removing its 24.00% annual credit growth ceiling. This strict administrative ceiling had severely restricted commercial bank lending across the country since its introduction in 2023.

The central bank abandoned the credit ceiling because annual headline inflation climbed significantly to 13.40% in May, up from 11.70% in April. These dual policy maneuvers mark Ethiopia’s historic transition toward a modern, interest-rate-driven monetary policy framework. The NBE is actively shifting away from direct administrative controls on lending in favor of flexible, market-based tools.

6. Liberia — 16.00%

The Central Bank of Liberia (CBL) opted for a cautious easing of its monetary policy stance during its July 2026 sessions. The apex bank slashed its benchmark interest rate by a minor 25 basis points, bringing the final rate down to 16.00%. This decision was officially communicated via Monetary Policy Communiqué No. 27 following the committee’s July 15 meeting.

The minor cut reduced the Monetary Policy Rate from its previous standing of 16.25% down to the current 16.00% threshold. Despite this reduction, CBL Governor Henry Saamoi emphasized that the bank is maintaining a generally tight monetary policy stance. The governor projects that the domestic economy will continue on a strong, highly sustainable growth trajectory through the rest of 2026.

The monetary policy committee based its easing decision on a collection of positive macroeconomic indicators. These indicators include declining consumer inflation expectations, steady exchange rate stability, and significantly stronger foreign exchange reserves. Additionally, continued financial resilience within the local commercial banking sector provided the necessary cushion to support the minor cut.

5. Sierra Leone — 16.75%

The benchmark monetary policy rate in Sierra Leone has been established at 16.75% as of the July 2026 policy review. This rate reflects the central bank’s ongoing battle to anchor local prices against persistent regional supply constraints. The current positioning shows a continuation of tight fiscal and monetary coordination across the country.

Looking at historical metrics, the benchmark interest rate in Sierra Leone averaged roughly 19.02% from the year 2000 through 2026. The nation hit its highest interest rate point in October 2000, when the benchmark soared to an all-time record high of 27.00%. Conversely, the lowest historical interest rate ever recorded for the nation was a flat 9.50% back in March 2015.

The current 16.75% benchmark shows that the central bank is trying to avoid returning to those historic highs while fighting off inflation. Policymakers are keeping a very close eye on the agricultural sector and imported commodity prices to see if further adjustments are necessary. The country remains highly vulnerable to shifting global shipping costs, which keeps the current rate bias tilted toward tightening.

4. Egypt — 19.00%

The Central Bank of Egypt decided to keep its key benchmark interest rate completely unchanged at 19.00% during its July 2026 meeting. This decision aligned perfectly with broad market expectations and financial analyst forecasts across the region. The policy holding pattern reflects a wait-and-see approach to ongoing domestic structural reforms.

Following the review, the Monetary Policy Committee (MPC) confirmed that overnight deposit and lending rates would remain steady. Specifically, the overnight deposit rate remains at 19.00%, the overnight lending rate sits at 20.00%, and the main operation rate is held at 19.50%. Additionally, the central bank’s official discount rate was maintained at 19.50%.

Egyptian policymakers explained that the decision directly reflects the committee’s detailed assessment of current inflation dynamics. The bank is closely tracking the evolving macroeconomic outlook and the impacts of foreign exchange liquidations. By keeping rates steady, Egypt aims to anchor investor expectations while evaluating the long-term impacts of global energy market disruptions.

3. Malawi — 24.00%

The Reserve Bank of Malawi (RBM) held its core monetary policy rate steady at a high 24.00% during its latest policy meeting. The session, led by central bank Governor George Partridge, determined that maintaining this level was necessary despite minor drops in inflation. The bank had previously reduced the benchmark from 26.00% in January to help spur local business activity.

This southern African nation has been stuck in a difficult economic crisis, characterized by scarce foreign exchange and high prices. Malawi has struggled to control inflation, which has remained above the 20.00% annual mark for more than three consecutive years. The high 24.00% lending rate is intended to serve as a strong break against further currency devaluation.

The RBM stated that holding the rate steady is justified by a slight improvement in consumer price indexing. Headline inflation in Malawi dropped from 27.70% down to 24.30% during the first quarter of 2026. This positive decline is mostly due to an improved local food supply, which has successfully driven down staple food prices in local marketplaces.

2. Nigeria — 26.50%

The Central Bank of Nigeria (CBN) retained its benchmark Monetary Policy Rate (MPR) at 26.50% for a second consecutive meeting. This decision ensures that Nigeria remains positioned near the top of the list of high-interest economies across Africa. The holding pattern confirms that the Monetary Policy Committee (MPC) is fully committed to a tight monetary stance.

The Governor of the CBN, Olayemi Cardoso, pointed to renewed geopolitical tensions in the Middle East as a primary reason for the hold. He noted that the ongoing Iran war presents persistent inflationary risks that the nation cannot ignore. These external threats require a high benchmark rate, despite the fact that Nigeria has seen a slight moderation in its domestic inflation trends.

The current 26.50% rate follows a modest 50-basis-point reduction implemented back in February 2026, down from an initial peak of 27.00%. This monetary policy decision was finalized after the National Bureau of Statistics (NBS) reported that headline inflation eased slightly. The inflation rate ticked down to 15.91% in June, showing a minor drop from the 15.93% recorded in May.

1. Zimbabwe — 30.00%

Zimbabwe officially holds the highest benchmark monetary interest rate across the entire African continent as of July 2026. The southern African nation claims this top spot even after implementing a massive interest rate reduction down to 30.00% in June. This current rate actually represents Zimbabwe’s lowest overall benchmark interest level recorded since April 2020.

The Reserve Bank of Zimbabwe, under the leadership of Governor John Mushayavanhu, cut the main lending rate by 500 basis points. The rate was aggressively dropped from its previous high position of 35.00% down to the current 30.00% level. This reduction was designed to ease extreme financial pressures on local industries and encourage formal commercial banking credit.

Despite this major 500-basis-point cut, the country’s central bank must maintain a high rate to protect its local currency. Zimbabwe’s financial history requires an aggressive approach to monetary policy to prevent speculative borrowing and stop rapid cash devaluations. The 30.00% benchmark serves as a crucial defensive wall against domestic market volatility and unpredictable global trade shocks.