Top 10 Countries with the Highest Central Bank Interest Rates in Africa 2025 | USAEMALL.com

In Summary

• Zimbabwe retains the highest central bank interest rate in Africa at 35%.
• The Central Bank of Nigeria (CBN), which is second in Africa, maintained its benchmark lending rate at 27.5% in February 2025.
• Analysts predict a potential easing of rates later in the year, possibly starting in H2, with cuts expected by the end of 2025.

Deep dive!!

Central Bank interest rates in Africa vary considerably across countries, these rates are pivotal tools for monetary authorities aiming to stabilize economies, control inflation, and attract foreign investment. For example, the Reserve Bank of Zimbabwe maintains the highest interest rate in Africa at 35%—this rate was fixed to anchor inflation expectations and support the newly introduced gold-backed currency, the ZiG.

As the year unfolds, several African nations will continue to grapple with inflationary pressures, currency volatility, and fiscal imbalances, prompting central banks to maintain or adjust high benchmark interest rates. Nigeria’s Central Bank benchmark lending rate was held at 27.5% in February 2025, a decision aligned with market expectations after six consecutive hikes. However, according to a report by Focus Economics, there will be a potential easing of rates later in the year, possibly starting in H2, with cuts expected by the end of 2025, potentially totaling around 225 basis points. 

Other countries like Senegal and Togo also have fixed interest rates, with Senegal’s expected to be 5.50% by the end of the quarter and Togo’s having an average of 4.25% since 2010. The report further reveals that the Central Bank of West African States, or Banque Centrale des Etats de l’Afrique de l’Ouest in French (BCEAO), a regional central bank, is expected to cut interest rates in 2025 as inflation returns to target, and the South African Reserve Bank (SARB) is also likely to cut interest rates. 

Below is a comprehensive analysis of the top ten African countries with the highest central bank interest rates as of 2025, including key insights into their economies, GDP, and the broader implications of these monetary policies.

Here are the Top 10 African Countries with the Highest Central Bank Interest Rates in 2025. Check them out!

10. Mozambique – 16.50%

Mozambique’s central bank reduced its interest rate to 16.5% in January 2024, following a decline in inflation from 9.9% in February 2023 to 4.0% in February 2024. The cut aims to stimulate economic growth while maintaining price stability.

• Economy: Recovering from conflict with promising gas and mining sectors. Agriculture and energy exports are key.
• Population: ~33 million
• GDP (2024 est.): $18.4 billion
• Impact: The reduced interest rate reflects strong disinflation and encourages growth in trade and services. It enhances access to credit, especially for exporters and small businesses.

9. Sierra Leone – 19.25%

Sierra Leone’s central bank has maintained its interest rate at 19.25% to manage inflation and support economic stability. The rate reflects ongoing efforts to control price levels and encourage investment. ​

• Economy: Mineral-rich but economically vulnerable. Agriculture and mining dominate, but infrastructure and governance challenges persist.
• Population: ~8.5 million
• GDP (2024 est.): $5.2 billion
• Impact: The tight monetary policy helps manage inflation but discourages bank lending. SME growth is constrained, and the informal sector expands as formal borrowing costs rise.

8. Angola – 19.00%

In March 2024, Angola’s central bank increased its benchmark interest rate to 19% from 18%, responding to a 24% inflation rate in February 2024. The hike aims to counteract currency depreciation and rising fuel prices following subsidy removals.

• Economy: Oil-dependent with recent efforts to diversify into agriculture, mining, and telecoms.
• Population: ~36 million
• GDP (2024 est.): $90 billion
• Impact: High rates help manage inflation from fuel subsidy removals but reduce consumer spending. It slows domestic production and weakens purchasing power, affecting commerce.

7. Congo (Brazzaville) – 25.00%

The Republic of Congo has set its central bank interest rate at 25% to address inflationary trends and support the national currency. This rate is among the highest in the region, indicating significant monetary tightening. ​

• Economy: Oil accounts for more than 70% of GDP. Other sectors include forestry and agriculture.
• Population: ~6 million
• GDP (2024 est.): $14.8 billion
• Impact: While it helps contain inflation, the high rate stifles private sector borrowing. Limited access to capital constrains trade, innovation, and employment.

6. Sudan – 27.30%

Sudan’s central bank maintains a high-interest rate of 27.3% to combat hyperinflation and stabilize the national currency. The rate reflects ongoing economic challenges and efforts to restore macroeconomic stability. ​

• Economy: Conflict-affected and oil-dependent. Agriculture and livestock are key sectors, but sanctions and civil unrest hinder growth.
• Population: ~45 million
• GDP (2024 est.): $31 billion
• Impact: The extremely high rate is a response to macroeconomic instability and currency devaluation. It severely limits domestic lending and discourages commerce.

5. Egypt – 25.00%

In April 2025, Egypt’s central bank reduced its overnight deposit rate to 25%, marking the first cut in over five years. This decision follows a significant decline in annual headline inflation from a peak of 38% in September 2023 to 13.6% in March 2025, reflecting successful monetary tightening and favorable economic conditions.

• Economy: Diversified with strong tourism, agriculture, industry, and remittances. It is a key geopolitical player in North Africa.
• Population: ~112 million
• GDP (2024 est.): $387 billion
• Impact: The reduced rate reflects improved inflation trends and is expected to boost investment and consumption. It supports ongoing fiscal reforms and could stimulate industrial production and exports.

4. Malawi – 26.00%

Facing persistent inflation, which stood at 33.5% in February 2024, Malawi’s central bank increased its benchmark interest rate to 26% in February 2024. The hike aims to stabilize prices and manage inflation expectations. ​

• Economy: Predominantly agricultural, with tobacco, tea, and sugar as main exports.
• Population: ~20 million
• GDP (2024 est.): $14 billion
• Impact: The central bank’s rate discourages credit expansion but is necessary to manage soaring inflation. Commercial activities, especially rural enterprises, face stagnation due to high borrowing costs.

3. Ghana – 27.00%

Ghana’s central bank has maintained its policy rate at 27% since early 2024, despite inflation rising to 23.8% in December 2024. The Bank of Ghana anticipates that upcoming economic policies from the newly elected government will help reduce inflationary pressures. ​

• Economy: Resource-rich, with gold, cocoa, and oil as major exports. Recently completed an IMF-supported economic reform program.
• Population: ~33 million
• GDP (2024 est.): $74 billion
• Impact: High rates reduce inflation but increase loan defaults and stifle entrepreneurial growth. The business environment becomes more expensive, particularly for start-ups and manufacturers.

2. Nigeria – 27.50%

In response to escalating inflation, which reached 33.8% in October 2024, the Central Bank of Nigeria raised its benchmark interest rate to 27.5% in November 2024. This move aims to curb inflationary pressures and stabilize the naira amidst economic challenges.

• Economy: Africa’s largest economy, heavily reliant on oil exports. It has a growing digital economy and an active informal sector.
• Population: ~223 million
• GDP (2024 est.): $477 billion
• Impact: The rate hike tightens liquidity in the banking system, discourages borrowing, and can slow economic growth. However, it may attract foreign investment in bonds and stabilize the naira in the short term.

1. Zimbabwe – 35.00%

Zimbabwe retains the highest central bank interest rate in Africa at 35%. The Reserve Bank of Zimbabwe maintains this rate to anchor inflation expectations and support the newly introduced gold-backed currency, the ZiG. Despite a significant devaluation in September 2024, the ZiG appreciated by 12.7% against the US dollar in November, indicating some stabilization. ​

• Economy: Zimbabwe’s economy is agriculture-driven with emerging mining and manufacturing sectors. The country has been battling hyperinflation for years.
• Population: ~16 million
• GDP (2024 est.): $21 billion
• Impact: The high-interest rate curbs inflation but restricts access to affordable credit for SMEs and consumers. Trade suffers due to reduced liquidity, while investment in the productive sector is hampered.

Conclusion

The high-interest rates across these African nations reflect ongoing efforts by central banks to combat inflation, stabilize currencies, and foster economic growth. While some countries have begun easing monetary policy in response to declining inflation, others continue to maintain high rates to address persistent economic challenges. These monetary tools significantly affect trade, commerce, and overall economic confidence. Monitoring these trends is crucial for investors, policymakers, and stakeholders engaged in Africa’s dynamic economic landscape.