Top 10 African Countries With the Highest Borrowing Costs in 2025

As inflationary pressures persist across Africa, many central banks have been forced to keep lending rates high to protect their currencies, control prices, and maintain investor confidence. While these measures can help stabilize economies, they also make borrowing more expensive for businesses and consumers.

According to recent data, Zimbabwe, Sudan, and Ghana currently lead the continent with the highest Monetary Policy Rates (MPR) — the benchmark interest rate set by central banks to guide lending and borrowing in their respective economies.

Why This Matters

The MPR directly influences commercial bank lending rates, meaning higher MPRs translate to more expensive loans for businesses, households, and even governments. While high rates can slow inflation and attract foreign investment, they can also limit access to credit and slow down economic growth.

Full Ranking: Top 10 African Countries With the Highest Borrowing Rates in 2025

Rank	Country	MPR (%)	Inflation (%)	Key Drivers
1	Zimbabwe	35.00	95.80	Hyperinflation, currency instability, structural weaknesses
2	Sudan	28.30	113.35	Political instability, currency depreciation, hyperinflation
3	Ghana	28.00	13.70	FX liquidity pressures, debt sustainability concerns
4	Nigeria	27.50	22.22	Naira depreciation, high import costs, food inflation
5	Malawi	26.00	27.10	Currency instability, drought-induced food shortages
6	DR Congo	25.00	5.00	Mining sector challenges, FX supply delays
7	Egypt	24.50	14.90	Currency devaluations, subsidy reforms, imported inflation
8	Sierra Leone	23.75	7.10	Food insecurity, fuel price volatility
9	Angola	19.50	19.73	Oil revenue fluctuations, currency fragility
10	Liberia	17.25	11.60	Domestic cost pressures, external shocks

Key Insights From the Data

• Hyperinflation remains a major factor: Sudan and Zimbabwe’s triple-digit inflation has kept rates extremely high.
• Currency stability is a key driver: Countries like Nigeria, Ghana, and Angola are using high MPRs to attract foreign investment and protect local currencies.
• Trade-off between stability and growth: While high rates can stabilize the economy, they also raise borrowing costs, making it harder for small businesses to expand.

Understanding the Monetary Policy Rate (MPR)

The MPR is the interest rate at which a country’s central bank lends to commercial banks. When inflation rises, central banks increase the MPR to slow down borrowing and spending. While this can help reduce price pressures, it can also limit economic growth if kept too high for too long.