10 African Countries Where Borrowing Money is Most Expensive in 2025

Borrowing money in many African countries has become a costly affair in 2025. With inflation still high and currencies under pressure, central banks across the continent are raising interest rates to keep prices in check and stabilize their economies. 

But while these rate hikes might help fight inflation, they also make life harder for governments, businesses, and everyday people who need credit.

Here ue 10 African countries where it’s most expensive to borrow money right now, based on their Monetary Policy Rates (MPRs), the key interest rate set by central banks to guide lending and borrowing in each economy.

Zimbabwe – MPR: 35.00% | Inflation: 95.80%

Zimbabwe leads the continent with the highest borrowing cost in 2025, holding its MPR at a staggering 35%. This is a direct response to the country’s ongoing struggle with hyperinflation, which stood at nearly 96% in July 2025.

The Reserve Bank of Zimbabwe has kept interest rates this high in a bid to stabilize the Zimbabwean dollar and calm rising prices. However, the economic reality on the ground tells a different story, credit has dried up, small businesses are suffocating, and consumers are turning to the informal market to survive. 

For many Zimbabweans, access to affordable loans has become a thing of the past.

The harsh borrowing environment is one of many symptoms of Zimbabwe’s broader economic problems: a weak currency, low investor confidence, and structural issues that go beyond just interest rates.

Sudan – MPR: 28.30% | Inflation: 113.35%

Sudan’s situation is even more dire than Zimbabwe’s inflation has hit 113%, the highest on the continent. Yet the country’s last officially declared MPR stands at 28.3%, one of the highest as well.

This policy rate hasn’t been updated since February 2023, highlighting the instability in the country’s financial system. 

Sudan is dealing with the fallout of political conflict, economic sanctions, and an ongoing civil crisis, all of which have wrecked investor confidence and made inflation almost impossible to control.

In this context, the Central Bank of Sudan’s tight monetary policy is more like damage control than a strategy for growth.

Borrowing in Sudan is nearly impossible, as commercial banks have little capacity or confidence to lend, and the formal financial sector remains under immense pressure.

Ghana – MPR: 28.00% | Inflation: 13.70%

Ghana comes in third with a 28% MPR, reflecting its ongoing efforts to bring inflation under control and stabilize its local currency, the cedi.

Since entering into an IMF-supported programme, Ghana has made some progress on inflation, which has slowed to 13.7% as of June 2025. However, this relative success has come at a steep cost: the high interest rate has made credit very expensive for private businesses and consumers.

Many small and medium-sized enterprises (SMEs), already dealing with rising operational costs and tax burdens, now find it even harder to access funding. 

The tight policy stance also limits domestic consumption, slowing down economic recovery in sectors like manufacturing, retail, and housing.

Nigeria – MPR: 27.50% | Inflation: 22.22%

Nigeria maintains an MPR of 27.5% as of July 2025, its highest in decades. This aggressive rate reflects the Central Bank of Nigeria’s ongoing battle against import-driven inflation, a weak naira, and rising food prices.

With inflation still above 22%, the CBN has stayed firm in its approach, hoping that higher rates will attract foreign capital and support the naira. But for businesses, the story is grim. 

Many are facing mounting costs from logistics, electricity shortages, and regulation and now, loans are too expensive to consider.

The knock-on effect is slower economic growth, weaker job creation, and greater reliance on the informal economy. While the CBN’s stance may win approval from international investors, everyday Nigerians are feeling the squeeze.

Malawi – MPR: 26.00% | Inflation: 27.10%

In Malawi, the central bank has raised interest rates to 26%, one of the highest in the region. This move is a response to severe currency instability and drought-related food shortages that have pushed inflation to over 27%.

The Reserve Bank of Malawi is trying to control price spikes and maintain some stability in the financial system. 

But the cost is steep: farmers and agro-based businesses can no longer afford to take loans for essential operations. SMEs across sectors are also feeling the strain.

With investor confidence still shaky, Malawi’s tight monetary policy is doing little to support real growth. Instead, it’s squeezing out the very actors the economy needs to recover entrepreneurs, cooperatives, and job creators.

DR Congo – MPR: 25.00% | Inflation: 5.00%

Interestingly, Democratic Republic of Congo (DRC) has one of the highest MPRs at 25%, despite having relatively low inflation at 5%.

The decision to raise the rate appears linked to pressures in the mining sector, particularly delays in currency repatriation from export earnings. 

DRC relies heavily on mineral exports, and when those earnings don’t flow back into the local economy, it can create liquidity crunches and price distortions.

The central bank’s move is meant to tighten financial conditions and stabilize the Congolese franc, but critics say the policy is too harsh given current inflation levels. The high rate has made credit nearly inaccessible, and businesses especially in non-mining sectors are feeling left behind.

Egypt – MPR: 24.50% | Inflation: 14.90%

Egypt’s central bank has raised interest rates to 24.5% as part of a wider effort to contain inflation following a series of currency devaluations and the removal of state subsidies.

With inflation still hovering around 14.9%, the country is struggling to balance its economic reforms with the day-to-day realities facing ordinary Egyptians. 

Many households are seeing their purchasing power shrink, and businesses are cutting back on expansion plans due to expensive financing.

Egypt’s high MPR is also a signal to international markets and creditors especially the IMF that the country is serious about fiscal discipline. But the side effect is a slowdown in domestic lending and investment, especially for startups and small-scale industries.