Top 10 African Countries With the Highest Borrowing Rates in 2025: Zimbabwe, Sudan, and Ghana Lead the List

As inflation continues to plague African economies, several central banks have been forced into aggressive monetary tightening, pushing borrowing costs to record highs. According to recent data, Zimbabwe, Sudan, and Ghana currently have the highest Monetary Policy Rates (MPRs) on the continent — a move aimed at curbing inflation, stabilizing currencies, and attracting investment.

However, while these high interest rates may help anchor prices, they also make credit more expensive for businesses, households, and governments, potentially slowing economic recovery and deepening fiscal pressures.

Zimbabwe Leads With Record-High Interest Rate

As of July 2025, Zimbabwe tops the chart with an MPR of 35%, a reflection of ongoing hyperinflationary pressure and fragile economic conditions. The Reserve Bank of Zimbabwe has maintained this rate to combat persistent price instability fueled by currency volatility and structural weaknesses.

Sudan and Ghana Follow Closely

Sudan, despite last announcing its policy rate in early 2023, holds the second-highest MPR at 28.3% amid triple-digit inflation of 113.35% in June 2025. Political instability, currency depreciation, and limited access to global markets have left the economy in a precarious state, with credit almost inaccessible.

Ghana is third, with an MPR of 28% as of May 2025. The Bank of Ghana raised rates to contain inflation and stabilize the cedi following an IMF-supported economic program. While inflation has moderated to 13.7%, high borrowing costs continue to weigh on domestic consumption and business expansion.

Nigeria in Fourth Place

Nigeria’s 27.5% MPR ranks it fourth in Africa. The Central Bank of Nigeria has been on one of its most aggressive tightening cycles in history, aiming to combat import-driven inflation, currency depreciation, and fiscal imbalances. Inflation stood at 22.22% in June 2025.

Other Countries on the List

The rest of the Top 10 African Countries with the Highest Borrowing Rates include:

Rank	Country	MPR (%)	Inflation (%)	Date (2025)
5	Malawi	26.00	27.10	Jun
6	DR Congo	25.00	5.00	Apr
7	Egypt	24.50	14.90	Jun
8	Sierra Leone	23.75	7.10	Jun
9	Angola	19.50	19.73	Jun
10	Liberia	17.25	11.60	Apr

Why MPR Matters

The MPR is the benchmark interest rate that influences all lending rates in an economy. Commercial banks typically lend at rates above the MPR, making it a critical tool for controlling inflation and influencing borrowing behavior.

When inflation rises, central banks increase the MPR to reduce money supply and cool price pressures. Conversely, lowering the MPR stimulates borrowing and spending during economic slowdowns.

However, the trade-off is stark — while higher rates may attract investors to fixed-income instruments like treasury bills and bonds, they also raise the cost of borrowing for governments, households, and businesses. In fragile economies with weak growth, high inflation, and limited fiscal buffers, this creates a policy dilemma.

Bottom Line:
Without structural reforms to boost productivity and strengthen institutions, tight monetary policy alone may not deliver the stability policymakers seek. The current interest rate landscape in Africa underscores the difficult balance between fighting inflation and sustaining economic growth.