African Countries With The Highest Interest Rates in May 2025

As inflation and currency volatility persist across Africa, several central banks have responded by tightening or holding their monetary policy rates. According to the May 2025 update, Nigeria, Ghana, and Zimbabwe are among the African countries with the highest interest rates, as governments strive to stabilize prices and protect economic growth.

The International Monetary Fund (IMF), in its April 2025 World Economic Outlook, revised downward the growth projections for most African economies—especially commodity exporters—due to reduced global demand, falling commodity prices, and tight financial conditions.

While countries like Egypt, Kenya, South Africa, and Mozambique have started easing monetary policy to support growth, others including Nigeria, Ghana, and Angola have maintained or increased rates to combat stubborn inflation.

Here’s a ranking of African countries with the highest interest rates in May 2025, based on data from their respective central banks:

1. Zimbabwe – 35%

The Reserve Bank of Zimbabwe (RBZ) maintained its policy rate at 35% in March 2025. The high rate aims to anchor inflation and support the new ZiG currency, following a 43% devaluation in late 2024. Despite weak domestic demand, authorities are prioritizing price and currency stability over growth.

2. Ghana – 28%

In March 2025, the Bank of Ghana hiked its rate by 100 basis points to 28%. New Governor Dr. Johnson Asiama signaled that while inflation is easing, risks remain elevated. The central bank remains focused on restoring macroeconomic stability.

3. Nigeria – 27.5%

The Central Bank of Nigeria (CBN) held its Monetary Policy Rate (MPR) at 27.5% during its 300th MPC meeting in May 2025. Inflation eased slightly to 23.71% in April, but the CBN emphasized the need for caution amid ongoing economic reforms and exchange rate adjustments.

Key Indicators:

• Asymmetric Corridor: +500/-100 basis points

• Cash Reserve Ratio (CRR): 50% (deposit banks), 16% (merchant banks)

• Liquidity Ratio: 30%

4. Malawi – 26%

The Reserve Bank of Malawi (RBM) kept its benchmark rate unchanged at 26% on May 8, 2025. Though inflation dropped from 48% to 33.9%, persistent food insecurity, forex shortages, and rising money supply prompted the bank to maintain a tight stance.

5. Egypt – 25.5%

In April 2025, the Central Bank of Egypt (CBE) reduced its rate by 225 basis points to 25.5%, marking its first cut since 2020. Inflation fell to 13.6% due to prior tightening and currency stabilization, offering room for cautious easing.

6. Democratic Republic of the Congo – 25%

The Central Bank of the Congo (BCC) retained its rate at 25% to address inflation and a weakening franc, especially amid geopolitical tensions in eastern DRC. Inflation closed at 23.8% in 2023, despite an 8.4% GDP growth.

7. Sierra Leone – 24.75%

The Bank of Sierra Leone raised its rate to 24.75% in October 2024. Inflation dropped to 25.49% by August 2024, driven by falling food and non-food prices. The bank remains watchful of macroeconomic risks.

8. Angola – 19.5%

The Banco Nacional de Angola (BNA) held its rate at 19.5% in January 2025. While inflation has started to ease, high price levels and the need for currency stability led to a conservative policy stance.

9. Liberia – 17.25%

On January 24, 2025, the Central Bank of Liberia (CBL) maintained its MPR at 17.25%, aiming to manage rising prices and slow GDP growth. Banking capital adequacy stood at 31.5%, well above regulatory requirements.

10. Gambia – 17%

Since September 2023, the Central Bank of The Gambia has maintained a 17% policy rate to contain inflation. The rate was reaffirmed in February 2025 amid ongoing price pressures and external vulnerabilities.

Global Comparison

While many African countries battle double-digit interest rates, developed economies have lower benchmarks:

• Turkey: 46%

• Russia: 21%

• Ukraine: 15.5%

• United States: 4.25% – 4.5%

• Canada: 2.75%

Conclusion: High Rates, Tough Trade-offs

African central banks continue to walk a fine line between inflation control and economic growth. With Nigeria ranking 3rd highest on the continent, the focus remains on macroeconomic stability, though high borrowing costs risk dampening investment and consumption.

As inflation gradually eases in many regions, monetary authorities may begin to ease interest rates in the second half of 2025, but that will depend heavily on domestic fiscal discipline, global commodity trends, and exchange rate dynamics.