Top 10 African countries with the lowest inflation figures in 2024

For most African countries, having a low inflation has numerous economic benefits. Given that many of the countries on the continent are regarded as low-income, it helps the economy when those nations are spared the hardship of dealing with severe inflationary pressures. A low inflation rate can pave the way for long-term growth and development.

Fighting high rates of inflation has been a persistent problem for many African nations, especially in recent history. High inflation rates affects several aspects an economy. However, when an African country attains and sustains a low rate of inflation, the situation takes a favorable turn.

A low inflation rate creates an atmosphere of economic stability. When the pricing of products and services stays generally steady, companies and consumers may plan for the future more confidently.

This consistency minimizes market uncertainty, therefore boosting both domestic and international investment. Investors are more inclined to devote their resources to an economy in which they can accurately foresee profits without fear of losing their assets due to rising inflation.

Additionally, low inflation ensures that wages and savings retain their value over time, enabling people to maintain their standard of living. This stability is crucial in regions where poverty and income inequality are prevalent, as it helps to safeguard the economic welfare of the vulnerable population.

A report by the Africa Development Bank which this list is based on notes that several African countries have had to deal with inflation rates which have affected every facet of their economies including the devaluation of their currencies.

However, according to the report, some African countries are far removed from these complications. Below are the 10 African countries with the lowest inflation figures in 2024, according to the AfDB’s report.