High inflation typically has severe negative effects on any given economy, particularly in African countries. High inflation creates serious barriers to sustained growth, affecting everything from social stability and economic decision-making to erosion of buying power and discouragement of savings. This can be intensely troubling for countries considered low-income.
High inflation erodes buying power, reduces savings, and distorts economic decision-making. This negative economic factor has an especially significant effect in Africa, where many countries are still emerging and facing a slew of fundamental issues.
The effects of high inflation have eaten deeply into the economies of many African nations, even weakening the value of national currencies.
A report by the Africa Development Bank which this list is based on highlights this point, stating “High inflation in most African countries has dampened the effect of nominal depreciation, with fewer countries showing real exchange rate depreciation. Rather, many countries recorded an appreciation of their exchange rates, in real terms, against the dollar.”
As mentioned above, high inflation rates seem to affect African countries in very negative ways. The Bank’s report also reads “Indeed, inflation and output are often negatively correlated in Africa, in contrast with high-income countries where demand shocks are more frequent and the stabilization of inflation also serves to stabilize output.”
PS: This list does not represent the latest figures, but figures as at the time the report was being put together.
Top 10 African countries with the highest inflation figures in 2024
| Rank | Country | Inflation rate |
|---|---|---|
|
1. |
Sudan |
157.9 |
|
2. |
Egypt |
35.8 |
|
3. |
Sierra Leone |
33.6 |
|
4. |
Nigeria |
31.6 |
|
5. |
Malawi |
27.3 |
|
6. |
Zimbabwe |
24.9 |
|
7. |
Burundi |
22.0 |
|
8. |
Ethiopia |
21.0 |
|
9. |
Ghana |
20.9 |
|
10 |
Angola |
18.1 |
