It is a tricky metric tied to a country’s inflation rates, which partially highlights the strength of an economy.
A high-interest rate spells disaster for business owners who rely on bank loans for the smooth operation of their enterprise. So it goes without saying that for a country to thrive, its interest rates have to be moderate.
Unfortunately, when back dropped against its inflation rate and overall economic performances, most African countries have absurd and impractical policy interest rates.
As reported by globaleconomy.com, a research institute that procures reliable economic data on foreign countries, the average interest rate as of 2021 was 1.85%. 5 of the10 highest interest rates for last year came from African countries, with the highest being Madagascar at 38.34, followed by Brazil at 17.03. Rwanda was next with 13.07.
However, as recently as September 2022, some African countries have recorded interest rates as high as 17%, 19%, and even 22%. Read Story here.
Fortunately, some African countries still have a more than fair interest rate. Below are ten of these countries according to the International Monetary Fund report.
This article, however, focuses on countries that have recently bumped their interest rates in response to the rising inflation in their country and not necessarily the countries with the lowest interest rates.
Botswana: Botswana currently has an interest rate of 2.50 and has grown by 0.50.
West African Economic and Monetary Union (WAEMU): This region comprising Benin, Burkina Faso, Côte D’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo, has an overall interest rate of 2.50 and has grown by 0.50 percentage points.
Mauritius: This nation has an interest rate of 3.00 and has grown by 1.15 percentage points.
Central African Economic and Monetary Community (CEMAC): Comprising Cameroon, Chad, the Central African Republic, Equatorial Guinea, Gabon, and the Republic of Congo, CEMAC has an overall interest rate of 4.50 and has grown by 1.00 percentage points.
Namibia: Namibia has an interest rate of 5.50 percentage points and has grown by 1.75.
Rwanda: At the 6th spot is the Eastern African country of Rwanda which has an interest rate of 6.00, growing by 1.50 percentage points.
Eswatini: This country’s current interest rate of 6.00 has grown by 2.25.
South Africa: Standing as one of the continent’s most prosperous nations, South Africa currently spots an interest rate of 6.25, growing by 2.50 percentage points.
Lesotho: This small nation spots the exact figures as its big brother nation South Africa at 6.25, growing by 2.50 percentage points.
Kenya: The economic hub of East Africa, has an interest rate of 8.25, growing by 1.25 percentage points.