Here are 10 African countries with the highest interest rates in 2026

African countries are maintaining some of the world’s highest interest rates in the first half of 2026, as the Iran war stokes fresh inflation fears and forces central banks across the continent to delay rate cuts amid rising oil prices, currency pressures and concerns over imported inflation.

Data compiled by Trading Economics showed a sharp divergence in monetary policy across Africa, with benchmark interest rates ranging from 35 percent in Zimbabwe to 1.75 percent in Seychelles.

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The Monetary Policy Rate (MPR) is the benchmark interest rate set by a country’s central bank, which commercial banks use to price loans and savings products. When the MPR rises, borrowing costs typically increase, making loans more expensive in a bid to curb inflation.

Higher rates, however, can also improve returns on savings. Conversely, lower rates are used to stimulate lending, investment and economic activity.
The wide gap in interest rates highlights the varying economic pressures facing African countries, many of which continue to grapple with slowing growth, elevated debt servicing costs and persistent pressure on local currencies.

Zimbabwe maintained Africa’s highest policy rate at 35 percent, a level authorities say is necessary to anchor inflation expectations and restore confidence in the Zimbabwe Gold (ZiG) currency introduced two years ago.

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“We need to make sure inflation is anchored first; therefore, the policy rate will remain at 35 percent,” John Mushayavanhu, governor of Zimbabwe’s central bank, said during a recent monetary policy briefing.

The hawkish stance persists despite signs that inflationary pressures are easing. Zimbabwe’s month-on-month inflation in local currency slowed to 0.5 percent in May from 1.1 percent in April, while annual inflation eased to 4.4 percent, according to the Zimbabwe National Statistics Agency.
Nigeria, Africa’s third-largest economy, retained its benchmark interest rate at 26.5 percent after the Central Bank of Nigeria’s Monetary Policy Committee voted to hold all policy parameters steady in May.

Olayemi Cardoso, governor of the Central Bank of Nigeria, said previous tightening measures were beginning to moderate inflationary pressures, although global risks linked to Middle East tensions continued to threaten energy and transport costs.

The central bank also retained the Cash Reserve Ratio for commercial banks at 45 percent, reinforcing one of the continent’s most aggressive monetary tightening regimes.

Malawi held its benchmark lending rate at 24 percent as the country battles a prolonged economic crisis that has kept inflation above 20 percent for more than three years despite recent improvements.

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Egypt maintained its deposit rate at 19 percent and lending rate at 20 percent, saying inflation risks and an “unfavourable external environment” continued to justify a restrictive monetary policy stance, even after urban inflation slowed slightly in April.

Several other African economies also maintained double-digit benchmark rates. Angola held rates at 17 percent, Sierra Leone at 16.75 percent and Liberia at 16.25 percent, where commercial borrowing costs remain significantly elevated.

Ethiopia retained its benchmark rate at 15 percent to contain persistent inflationary pressures, while Ghana and Gambia both held rates at 14 percent.
Elsewhere, South Sudan maintained a 13 percent rate, Madagascar held at 12 percent, while Uganda, Guinea and Mozambique all kept benchmark rates near or above 9 percent.

By contrast, countries with relatively stable inflation environments continued to maintain significantly lower borrowing costs.
Seychelles recorded Africa’s lowest benchmark interest rate at 1.75 percent, while Morocco and Algeria maintained rates at 2.25 percent and 2.5 percent, respectively.

Several member states of the West African Economic and Monetary Union (WAEMU), including Senegal, Côte d’Ivoire, Benin and Togo, continued to operate under a common benchmark rate of 5 percent set by the regional central bank.

Meanwhile, South Africa raised its key repo rate by 25 basis points to seven percent on Thursday, marking its first rate hike since 2023. The move came after inflation accelerated to four percent in April from 3.1 percent in March, pushing price growth toward the upper band of the central bank’s target range.

Still, the benchmark rate in Africa’s biggest economy remains significantly below levels seen in several frontier African economies, reflecting comparatively more stable inflation and macroeconomic conditions.

Many central banks remain reluctant to begin aggressive rate cuts, fearing that easing monetary policy too quickly could trigger renewed inflationary pressures, weaken local currencies and erode investor confidence at a time when global financial conditions remain uncertain.