Top 10 African countries with the highest interest rate as of May 2026

Across Africa, central banks continue to balance the competing pressures of bringing inflation under control while still supporting fragile economic growth.

As a result, monetary policy rates (MPRs) remain elevated across several economies, keeping borrowing costs high for households, businesses, and governments.

From Zimbabwe’s exceptionally high 35.00% benchmark rate to Ghana and The Gambia at 14.00%, Africa’s interest rate landscape reflects wide disparities in inflation trends, currency stability, fiscal positions, and exposure to external shocks.

Nigeria currently has the second-highest Monetary Policy Rate (MPR) in Africa among major economies.

While a few central banks on the top 10 list have begun cautiously easing policy as inflation gradually moderates, others remain firmly on hold, underscoring that the fight against inflation is still ongoing.

At the same time, geopolitical risks, particularly tensions in the Middle East and fluctuations in global oil prices, continue to influence monetary policy decisions across several African economies.

Taken together, the current interest rate environment points to an uneven and still fragile disinflation process across the continent, even as inflation trends show gradual improvement in several countries.

Africa’s most expensive countries to borrow money in May 2026

The Gambia – MPR: 14.00%

Previous: 16.00% | Last MPC Meeting: February 2026

The Gambia reduced its policy rate by 200 basis points to 14%, making it one out of the two countries in this ranking currently easing monetary policy.

Inflation pressures have moderated due to improved food supply conditions and softer imported inflation, helping to stabilize inflation expectations.

Despite the cut, borrowing costs remain relatively high for a small import-dependent economy that remains vulnerable to external price shocks.

Ghana – MPR: 14.00%

Previous: 14.00% | Last MPC Meeting: May 2026

Ghana maintained its policy rate at 14.00%, reflecting a cautious pause following earlier improvements in macroeconomic stability.

Headline inflation edged slightly to 3.40% in April 2026, although core inflation continued to ease. Foreign reserves also improved significantly, while treasury bill yields declined sharply. The headline inflation is near multi-year lows following a sharp disinflation cycle over the past two years.

The central bank remains cautious due to potential risks from oil prices, exchange rate pressures, and external geopolitical uncertainty.

Ethiopia – MPR: 15.00%

Previous: 15.00% | Last MPC Meeting: March 25, 2026

Ethiopia kept its policy rate unchanged at 15.00%, maintaining a tight monetary stance under its evolving policy framework.

Inflation has continued to moderate, with food inflation falling significantly from previous highs.

Real interest rates have also turned positive for the first time in recent years. This implies that interest rates in Ethiopia are now higher than inflation, allowing savings to grow in value after accounting for inflation

However, money supply growth remains elevated, prompting policymakers to maintain a cautious approach until inflation falls further.

Liberia – MPR: 16.25%

Previous: 16.25% | Last MPC Meeting: April 27, 2026

Liberia maintained its policy rate at 16.25%, while signaling a continued cautious tightening bias.

Inflation eased to 3.60% in Q1 2026, though imported price risks from fuel and food remain elevated.

The central bank also highlighted concerns around exchange rate pressures and elevated non-performing loans in the banking sector.

Sierra Leone – MPR: 16.75%

Previous: 16.75% | Last MPC Meeting: March 2026

Sierra Leone retained its policy rate at 16.75% following renewed inflationary pressures earlier in the year.

Headline inflation accelerated to 8.05% by February 2026 from 4.35% in December 2025 , driven mainly by higher fuel prices and tax-related adjustments.

While banking sector conditions remain relatively stable, policymakers continue to monitor global uncertainty and weak private sector credit growth.

Angola – MPR: 17.00%

Previous: 17.50% | Last MPC Meeting: May 2026

Angola cut its policy rate to 17.00%, extending its gradual easing cycle as inflation conditions improve.

Inflation has moderated following earlier tightening measures, supported by stronger oil revenues and improved exchange rate stability.

However, the economy remains highly exposed to crude oil price volatility and external market shocks, keeping policymakers cautious.

Egypt – MPR: 19.00%

Previous: 19.00% | Last MPC Meeting: April 2026

Egypt maintained its policy rate at 19.00%, keeping monetary conditions firmly tight.

Headline inflation rose to 13.40% in February 2026 from 11.90% in January, while core inflation also moved higher.

The central bank remains cautious due to energy-related inflation risks, fiscal reforms, and geopolitical tensions in the Middle East.

Malawi – MPR: 24.00%

Previous: 24.00% | Last MPC Meeting: April 29–30, 2026

Malawi retained its policy rate at 24.00%, maintaining one of the highest benchmark rates on the continent.

Although inflation eased to 24.30% in the first quarter of 2026, price pressures remain elevated due to fuel costs, import inflation, and foreign exchange shortages.

The Reserve Bank of Malawi also increased the Liquidity Reserve Requirement from 10.00% to 12.00% to absorb excess liquidity from the banking system.

Nigeria – MPR: 26.50%

Previous: 26.50% | Last MPC Meeting: May 19–20, 2026

Nigeria maintained its Monetary Policy Rate at 26.50%, sustaining the second-highest interest rate level in Africa.

At the same time, Nigeria ranks third in Africa in terms of inflation levels, highlighting the pressure behind the current tight monetary stance.

Inflationary pressures have remained elevated, driven by food prices, FX adjustments, energy costs, and broader structural supply constraints, although tighter monetary conditions and improved FX stability helped moderate broader risks.

Zimbabwe – MPR: 35.00%

Previous: 35.00% | Last MPC Meeting: March 2026

Zimbabwe retained its benchmark policy rate at 35.00%, remaining Africa’s most expensive country to borrow money.

Inflation continued to ease sharply, with annual inflation falling to 3.85% in February 2026 following years of severe price instability.

Despite the improvement, authorities remain focused on preserving confidence in the ZiG currency framework and preventing renewed inflationary pressures.

Why this matters

High benchmark interest rates across Africa have broad implications for businesses, consumers, investors, and governments.

For businesses and households, high policy rates translate into higher borrowing costs, making loans more expensive and slowing credit expansion, consumer spending, and private sector investment.

For governments, tighter monetary conditions increase domestic borrowing costs and debt servicing pressures, particularly in economies with large fiscal deficits or high refinancing needs.

At the same time, high interest rates are often used to stabilize currencies, contain inflation, and attract foreign portfolio inflows into fixed-income markets. Countries such as Nigeria, Egypt, and Ghana continue to maintain relatively elevated rates partly to preserve FX stability and sustain investor confidence.

However, persistently high rates can also slow economic growth if maintained for too long, especially in economies already facing weak consumer demand, FX shortages, or structural supply constraints.

The divergence in monetary policy across Africa also highlights differences in inflation trends, external vulnerability, and macroeconomic stability among the continent’s largest economies.