Highest African Countries with Central Bank Interest Rates in 2025
In Africa, central bank interest rates vary significantly from country to country, with some maintaining high rates to combat inflation and stabilize their economies, while others keep rates low to encourage lending and economic growth.
Sierra Leone's central bank has kept its interest rate at 19.25% to curb inflation, a move mirrored by Zimbabwe, which retains the highest central bank interest rate in Africa at 35%, to anchor inflation expectations and support the newly introduced gold-backed currency, the ZiG.
Angola and Nigeria also have elevated rates, with Angola increasing its benchmark interest rate to 19% in March 2024, and Nigeria raising its rate to 27.5% in November 2024 to tackle inflationary pressures. Sudan, too, has a high-interest rate of 27.3%, a response to hyperinflation and currency devaluation.
On the other hand, countries like Senegal and Togo have lower interest rates. Senegal's expected interest rate is 5.50% by the end of the quarter, while Togo's average interest rate since 2010 is 4.25%. Mozambique reduced its interest rate to 16.5% in January 2024.
South Africa’s interest rate levels are influenced by global market conditions and domestic economic policies, which can boost investment in financial markets but may curb demand in the broader economy.
Some African countries, such as Malawi and the Republic of Congo, have raised their interest rates due to persistent inflation. Malawi increased its benchmark interest rate to 26% in February 2024, while the Republic of Congo sets its central bank interest rate at 25%.
Egypt's central bank recently reduced its overnight deposit rate to 25% in April 2025, marking the first cut in over five years. Analysts predict a potential easing of rates for Nigeria later in the year, possibly starting in H2, with cuts expected by the end of 2025.
The Central Bank of West African States is expected to cut interest rates in 2025, a move that could encourage lending and economic growth in the region. However, high-interest rates in countries like Sudan, Egypt, Malawi, Ghana, and Nigeria limit domestic lending and discourage commerce.
The high-interest rates in these countries are generally aimed at containing inflation but can also slow economic growth by increasing borrowing costs and reducing investment and consumption. The impact of these high rates on the African economy as a whole remains a topic of ongoing debate among economists and policymakers.
