Top 10 African countries with the highest interest rate as of September 2022

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A country’s interest rate or policy interest rate is the rate at which the central bank of a country pays or charges commercial banks for their deposits or loans.

As mentioned earlier, it is a reliable metric of how well an economy is performing. However, unlike inflation rates, the magnitude of a country’s interest rate itself does not entirely elaborate on an economy’s strength.

A fluctuating policy interest rate typically represents an unstable economy. And an unnecessarily high interest simply creates a huge financial barrier for businesses within the country as paying back loans intended to service both SMEs and big businesses becomes more daunting.

It is also important to note that when a country’s interest rate is too high, it instantly translates to a lower money supply in the economy.

Africa is no stranger to these economic complications. This year in particular has been unkind to the region’s economy. While rising inflation rates continue to plague the entire continent, interest rates in many of the countries within the continent follow suit.

Below is a list of African countries with the highest interest rate or interest percentage point according to a report by the International Monetary Fund, as of September 2022.

This list also includes the number of percentage points the interest rate has increased since the beginning of the year.

  1. Ghana (22.00): Ghana currently has an interest rate of 22.0 and has grown by 7.50 percentage points. 
  2. Angola (19.50): This North African country has an interest percentage point of 19.50, but has reduced by 0.50.
  3. Mozambique (17.25): Mozambique has a current interest percentage point of 17.25, increasing by 4 points since the year began. 
  4. Sierra Leone (16.00): Spotting an interest percentage point of 16.00, increasing by 1.75 since the year began.
  5. Nigeria (15.50): The heartland of Africa, Nigeria has a current interest rate of 15.50, and has steadily increased all year round by 4.00
  6. Malawi (14.00): This East African country has an interest rate of 14.00 and has increased by 2.00 since the year began. 
  7. The Gambia (12.00): The Gambia’s current interest percentage point stands at 12.00, also increasing by 2.00 since the year began. 
  8. Guinea (11.50): This country’s interest rate has stayed the same since the year began, its current interest percentage point is 11.50. 
  9. Uganda (9.50): Uganda’s current interest rate currently stands at 9.50, and it increased by 2.50 since January 2022. 
  10. Zambia: Another entrant on this list with a stable interest rate since the year began, Zambia’s interest rate grew and reduced by 0 points and currently stands at 9.00.

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