While the average global lending rate sits below 10%, many African economies have interest rates far above that. This creates a tough environment for businesses and everyday people who need access to credit.
In countries where inflation is high or the local currency keeps losing value, central banks often respond by raising interest rates. This makes borrowing more expensive but is seen as a way to protect the economy. However, this approach also comes with downsides: it slows down growth and limits job creation.
In oil-producing countries like Nigeria and Angola, high interest rates continue despite strong export revenues. In others, like Zimbabwe and Ghana, weak currencies and rising prices are major drivers.
This ranking highlights the ten African countries with the highest average bank interest rates based on data from central banks and financial reports as of early 2025.
Rankings of Top 10 African Countries by Bank Interest Rates (Early 2025)
| Rank | Country | Average Bank Interest Rate |
|---|---|---|
|
1 |
Zimbabwe |
35% |
|
2 |
Ghana |
28% |
|
3 |
Nigeria |
27.5% |
|
4 |
Malawi |
26% |
|
5 |
Egypt |
25.5% |
|
6 |
Democratic Republic of the Congo |
25% |
|
7 |
Sierra Leone |
24.75% |
|
8 |
Angola |
19.5% |
|
9 |
Liberia |
17% |
|
10 |
Gambia |
17% |
These countries rank high mainly because of inflation, debt, and weak economic growth. Zimbabwe tops the list, with a 35% interest rate caused by rising prices, a struggling currency, and limited access to loans.
Ghana and Nigeria follow closely. Both countries are dealing with inflation, borrowing by the government, and falling currency values. Despite being oil producers, Nigeria and Angola are still facing these same issues.
In Malawi and Sierra Leone, interest rates are high due to efforts to control inflation and protect their currencies. Egypt, the DRC, and Liberia also keep rates high because of debt and efforts to manage their economies.
Gambia rounds out the list with a 17% rate, as the country works to balance its economy and keep prices stable.
Across these nations, high interest rates make it harder for businesses and individuals to get affordable loans. This slows down economic activity and limits opportunities, especially for small businesses.
Central banks are trying to balance the need to control inflation with the need to boost lending. But with rising global prices and economic uncertainty, many countries are being careful not to reduce rates too quickly.
