Africa’s most expensive countries to borrow money in December 2025 

Across Africa, central banks continue to curb inflation without choking off economic growth.

As a result, monetary policy rates (MPRs) remain elevated across much of the continent, underscoring how costly borrowing still is for households and businesses.

From Zimbabwe’s exceptionally high 35% benchmark rate to The Gambia’s comparatively lower 16%, borrowing costs reflect differing degrees of inflationary pressure, currency fragility, fiscal stress, and structural constraints.

While several central banks have begun cautiously easing policy as inflation moderates, financial conditions remain tight by both historical and global standards.

Taken together, these policy stances highlight Africa’s uneven and fragile path toward price stability and more affordable credit.

Below are the African countries with the highest monetary policy rates as of December 2025.

The Gambia – MPR: 16.00% 

• Previous: 17.00% | Last MPC Meeting: December 2025 

The Gambia rounds out the list after cutting its policy rate to 16% at its December 2025 MPC meeting. The decision followed continued moderation in headline inflation, which eased to about 7% in October 2025, its lowest level since 2020, alongside relatively strong external reserves by regional standards.

Lower import costs, improved domestic food supply, and sustained monetary discipline helped anchor inflation expectations. While borrowing costs remain high for a small open economy, the policy shift signals growing confidence in inflation containment and exchange-rate stability.

Liberia – MPR: 16.25% 

• Previous: 17.25% | Last MPC Meeting: October 2025 

The Central Bank of Liberia reduced its policy rate to 16.25% in late 2025 as inflation continued to trend downward, supported by softer food prices, easing imported inflation, and a firmer Liberian dollar.

Improving macroeconomic conditions, including stronger export receipts and remittance inflows, gave policymakers room to adopt a more accommodative stance. Earlier tight monetary conditions helped rein in inflation, allowing the MPC to cautiously support growth without undermining price stability.

Democratic Republic of the Congo – MPR: 17.50% 

• Previous: 25.00% | Last MPC Meeting: October 2025 

The Central Bank of the Congo delivered one of the most significant rate cuts in 2025, slashing its benchmark rate from 25% to 17.5% in October. The move reflected a sharp improvement in inflation and external stability.

Year-on-year inflation fell to low single-digit levels by early December 2025, supported by a stronger Congolese franc, improved current-account dynamics, and rising export earnings from the mining sector.

Prudent liquidity management and reserve accumulation helped anchor expectations, giving the MPC room to ease while remaining alert to external risks.

Ghana – MPR: 18.00% 

• Previous: 21.50% | Last MPC Meeting: November 2025 

Ghana recorded one of the sharpest policy pivots in 2025, cutting its MPR to 18% in November from 21.5% the previous month. Headline inflation slowed to 6.3% in November, its lowest level since the CPI rebasing in 2021.

Sustained disinflation, a stronger cedi, and improved fiscal and external buffers underpinned the decision.

With inflation projected to remain within or near the central bank’s target band, policymakers signaled confidence that easing could support credit growth without reigniting price pressures.

Angola – MPR: 18.50% 

• Previous: 19.00% | Last MPC Meeting: November 2025 

Angola’s central bank continued its gradual easing cycle, cutting its policy rate to 18.5% in November 2025. Headline inflation eased to about 16.6% in November, its lowest level since late 2023.

Earlier tightening helped anchor expectations, allowing policymakers to cautiously pivot toward supporting economic activity. Nonetheless, the central bank remains watchful of renewed inflation risks, particularly from supply-side and exchange-rate pressures.

Sierra Leone – MPR: 18.75% 

• Previous: 21.75% | Last MPC Meeting: September 2025 

Sierra Leone implemented a notable 300-basis-point rate cut in September 2025, lowering its policy rate to 18.75%. The move followed progress in inflation control and broader macroeconomic stabilization.

Improved fiscal balances, a more balanced trade position, and easing price pressures created room for accommodation. The rate remains unchanged in December 2025 as authorities prioritize sustaining macroeconomic gains while encouraging private-sector investment.

Egypt – MPR: 21.00% 

• Previous: 21.00% | Last MPC Meeting: November 2025 

Egypt’s central bank held its policy rate at 21% in November, maintaining the same level into December 2025. Inflation continued to trend downward, easing to about 12.3% in November, supported by slowing food prices and favorable base effects.

Earlier in the year, the Central Bank of Egypt cut rates by more than 600 basis points, reflecting improving inflation dynamics. However, renewed pressures from energy prices and core inflation prompted a pause, underscoring lingering risks to price stability despite ongoing reforms.

Malawi – MPR: 26.00% 

• Previous: 26.00% | Last MPC Meeting: October 2025 

Malawi maintained its policy rate at 26% in October 2025, a stance that remained in place through December. Inflation, while easing from earlier peaks, remained elevated in the high-20% range.

The Reserve Bank of Malawi cited persistent pressures from fuel costs, structural supply constraints, and foreign-exchange shortages. Policymakers emphasized that durable disinflation would require fiscal discipline and supply-side reforms alongside tight monetary policy.

Nigeria – MPR: 27.00% 

• Previous: 27.00% | Last MPC Meeting: November 2025 

Nigeria held its Monetary Policy Rate at 27% in November 2025, pausing after an extended tightening cycle. The rate remains unchanged in December, pending the next MPC meeting in February 2026.

Headline inflation eased for eight consecutive months, falling to about 14.45% in November, according to National Bureau of Statistics (NBS), supported by tighter financial conditions, improved exchange rate stability, and stronger external reserves. The MPC opted to allow previous rate hikes to fully transmit while balancing inflation control with economic recovery.

Zimbabwe – MPR: 35.00% 

• Previous: 35.00% | Last MPC Meeting: December 2025 

Zimbabwe remains Africa’s most expensive country to borrow money. Its policy rate has been held at an exceptionally high 35% since September 2024, with the central bank reaffirming the stance in December 2025.

Although inflation slowed sharply during 2025, falling from extremely high levels mid-year to below 20% by November—the Reserve Bank of Zimbabwe maintained its tight posture to consolidate gains and anchor expectations.

Support from the gold-backed ZiG currency and strict liquidity controls helped stabilize prices, but authorities have stressed that sustained discipline is required before meaningful easing can begin.