Africa’s Costliest Credit: 10 Countries With the Highest Interest Rates in May 2026
Across Africa, central banks are still walking a tightrope. Inflation is easing in pockets, but growth remains fragile. The result is a map of high benchmark rates that keep borrowing expensive for households, firms, and governments alike.
From Zimbabwe’s 35.00% policy rate down to The Gambia’s 14.00%, the continent’s monetary policy picture shows wide gaps. The differences come down to inflation trends, currency pressure, fiscal strain, and how exposed each country is to global shocks. Nigeria now sits with the second-highest Monetary Policy Rate among major African economies.
A few central banks have started to ease as price pressures cool. Most are holding firm. The message is clear: the inflation fight is not over. At the same time, geopolitical risks in the Middle East and volatile oil prices are still shaping rate decisions in several economies.
Taken together, May 2026 points to an uneven disinflation path. Inflation is improving in several places, but the process remains fragile.
Africa’s most expensive countries to borrow money in May 2026
10. The Gambia – MPR: 14.00%
Previous: 16.00% | Last MPC Meeting: February 2026
The Gambia cut its policy rate by 200 basis points to 14.00%, making it one of only two countries in the top 10 currently easing policy. Inflation pressures have cooled thanks to better food supply and softer imported inflation, which helped steady expectations.
Even with the cut, borrowing costs stay high for a small, import-dependent economy that remains exposed to external price swings.
What the list means
High rates are not just numbers on a central bank release. They set the price of credit for everything from SME loans to government bonds. Zimbabwe at 35.00% reflects an economy still trying to anchor expectations after years of currency and price instability. Nigeria’s position near the top shows the CBN is keeping policy tight to defend the naira and drag inflation down.
The fact that only two countries on the list are cutting rates says most central banks see upside risks to inflation. Food supply, FX markets, and energy prices are the main watchpoints. Until those stabilize, borrowing costs across much of Africa will stay elevated.
For businesses, that means expansion plans stay costly. For governments, debt service eats a larger share of budgets. For households, mortgages and consumer loans remain out of reach. The disinflation trend is real, but credit relief is still slow to arrive.
