Published: October 4, 2026 | Last updated: October 4, 2026
Key Facts
- Zimbabwe holds the highest rate in Africa at 30%, after the Reserve Bank of Zimbabwe cut it from 35% in June 2026 (Nairametrics, September 26, 2026)
- Nigeria's 350 basis point cut to 23% on September 22 was its largest since December 2006 and dropped it from second to third place, though five of eight economists in a Bloomberg survey expected no change (Nairametrics; Fellow Press, September 2026)
- Only three countries have rates above 20%: Zimbabwe, Malawi (24%) and Nigeria (23%), and the top 10 span 14% to 30% (Nairametrics, September 26, 2026)
- Four central banks cut at their latest decisions (Angola, Liberia, Nigeria and Zimbabwe) while two raised rates (Ethiopia and Sierra Leone) (Nairametrics, September 26, 2026)
- Egypt's central bank held its overnight deposit rate at 19% on September 24, its sixth straight hold, with the next decision due October 29 (Investing.com; Trading Economics)
| Rank | Country | Central Bank | Policy Rate | Latest Move | Date of Last Change | As of |
|---|---|---|---|---|---|---|
| 1 | Zimbabwe | Reserve Bank of Zimbabwe | 30.00% | Cut 500 bps (from 35%) | June 2026 | Oct 4, 2026 |
| 2 | Malawi | Reserve Bank of Malawi | 24.00% | Held (Sept 23–24) | Cut 200 bps, Mar 5, 2026 | Oct 4, 2026 |
| 3 | Nigeria | Central Bank of Nigeria | 23.00% | Cut 350 bps (from 26.5%) | Sept 22, 2026 | Oct 4, 2026 |
| 4 | Egypt | Central Bank of Egypt (overnight deposit rate) | 19.00% | Held (Sept 24) | Cut 100 bps, Feb 12, 2026 | Oct 4, 2026 |
| 5 | Sierra Leone | Bank of Sierra Leone | 17.00%* | Raised 25 bps (from 16.75%) | June 15, 2026 | Oct 4, 2026 |
| =6 | Ethiopia | National Bank of Ethiopia | 16.00% | Raised 100 bps (from 15%) | July 13, 2026 | Oct 4, 2026 |
| =6 | Liberia | Central Bank of Liberia | 16.00% | Cut 25 bps (from 16.25%) | July 15, 2026 | Oct 4, 2026 |
| 8 | Angola | National Bank of Angola | 14.75% | Cut 100 bps (from 15.75%) | Sept 15, 2026 | Oct 4, 2026 |
| =9 | Gambia | Central Bank of The Gambia | 14.00% | Held (Aug 19–20) | Unchanged | Oct 4, 2026 |
| =9 | Ghana | Bank of Ghana | 14.00% | Held (Sept 23–24) | Cut 150 bps, Mar 18, 2026 | Oct 4, 2026 |
*Latest confirmed rate. A September decision was scheduled for September 29. Ties are listed alphabetically.
Selected Details About Each Country
1. Zimbabwe
30%. The Reserve Bank of Zimbabwe cut its policy rate from 35% in June 2026, the lowest level since April 2020, and said annual inflation has stayed below 5% since the start of the year. The 35% rate had been set to anchor expectations and support the Zimbabwe Gold (ZiG) currency. With inflation under 5%, the real rate is still above 25 points (our calculation).
2. Malawi
24%. The Reserve Bank of Malawi held its rate at its September 23 to 24 meeting, after cutting it by 200 basis points in March. Inflation was 20.8% in July, the highest in Africa, with non-food inflation at 32.2%. The bank also raised its liquidity reserve requirement from 10% to 12% earlier this year, citing fuel costs, imported inflation and foreign exchange shortages.
3. Nigeria
23%. The CBN cut the Monetary Policy Rate by 350 basis points on September 22, its largest cut since December 2006, as headline inflation fell for a third month to 15.39% in August, down from 23.14% a year earlier. Reserves were about $55.25 billion on September 18. The CBN kept the cash reserve requirement at 45% for commercial banks and narrowed the standing facilities corridor to +50/−300 basis points. Banks had not cut lending rates by September 28, and the next meeting is on November 23 and 24.
4. Egypt
19%. The Central Bank of Egypt held its overnight deposit rate at 19% and its lending rate at 20% on September 24, its sixth consecutive hold. The February 2026 cut of 100 basis points remains this year's only move. Urban inflation eased to 14.5% in August but core inflation rose to 14.9%.
5. Sierra Leone
17%. The Bank of Sierra Leone raised its rate by 25 basis points from 16.75% in June. In March it had held rates, citing rising inflation and external risks from the Middle East war, plus fuel price adjustments and new tax measures in the 2026 Finance Act.
6. Ethiopia (tied)
16%. The National Bank of Ethiopia raised its rate by one percentage point on July 13, the first change since the benchmark was introduced in July 2024, and scrapped a 24% credit growth ceiling on banks. Inflation rose to 13.4% in May after falling below 10% in December 2025, and the bank expects it to stay in double digits over the next six months.
6. Liberia (tied)
16%. The Central Bank of Liberia cut its rate by 25 basis points from 16.25% on July 15, citing better inflation, foreign reserves and banking-sector conditions. Reserve requirements stay at 25% for Liberian dollar deposits and 10% for US dollar deposits.
8. Angola
14.75%. The National Bank of Angola cut its rate by 100 basis points on September 15, its third consecutive cut after a 125 basis point cut in July, as inflation fell to single digits.
9. Gambia (tied)
14%. The Central Bank of The Gambia held its rate at its August 19 to 20 meeting. It kept the reserve ratio at 13% and the standing lending facility rate at 15%.
9. Ghana (tied)
14%. The Bank of Ghana held its rate at its September 23 to 24 meeting, after cutting by 150 basis points in March. Inflation rose to 5.0% in August, still well anchored, while real GDP grew 6.0% in the second quarter. The gap between the policy rate and inflation is about 9 points (our calculation).
Quick Answers to Commonly Asked Questions About this Topic
Which African country has the highest interest rate?
Zimbabwe, at 30%, after the central bank cut it from 35% in June. Malawi (24%) and Nigeria (23%) follow.
Why did Nigeria cut rates so sharply?
The CBN cited three straight monthly falls in inflation, to 15.39% in August, plus stronger economic growth (4.43% in the second quarter) and improved external reserves. The cut surprised markets, and borrowers had not yet seen lower bank lending rates by September 28.
Why did Ethiopia and Sierra Leone raise rates?
Both pointed to inflation pressures linked to the Middle East war. Ethiopia cited the oil price shock lifting fuel and transport costs, and Sierra Leone cited the war's effect together with fuel pump price changes and new taxes.
Which countries have lower rates?
Just outside the top 10, Zambia is at 13.25%, South Sudan at 13% and DR Congo at 12.5%, down from 25% in October 2025. South Africa is at 7.25% after a 25 basis point rise on September 23. Rates in the Central African CFA zone, including Cameroon, Chad and Gabon, are 4.5%, and Seychelles is as low as 1.75%.
Does a high policy rate mean high real returns?
Not always. Subtracting the latest inflation from each rate gives rough real rates of about 9 points in Ghana, 7.6 in Nigeria, 4.5 in Egypt, 3.2 in Malawi and 2.6 in Ethiopia (our calculations, with inflation figures from different months). Zimbabwe's is above 25.
Data Sources
- Nairametrics, "Top 10 African countries with the highest interest rates in September 2026," September 26, 2026. Pulled October 4, 2026. https://nairametrics.com/2026/09/26/top-10-african-countries-with-the-highest-interest-rates-in-september-2026/
- Trading Economics, Africa interest rate list. https://tradingeconomics.com/country-list/interest-rate?continent=africa
- Wikipedia, "List of countries by central bank interest rates." https://en.wikipedia.org/wiki/List_of_countries_by_central_bank_interest_rates
- Nairametrics, "Top 10 African countries with the highest interest rates in July 2026." http://nairametrics.com/2026/07/27/top-10-african-countries-with-the-highest-interest-rates-in-july-2026/
- BusinessDay, "Nigeria moves to Africa's third-highest interest rate despite bumper cut." https://businessday.ng/africa/article/nigeria-moves-to-africas-third-highest-interest-rate-despite-bumper-cut/
- Gazette NG and Nairametrics, CBN decision coverage, September 22–23, 2026. https://gazettengr.com/cbn-cuts-interest-rate-to-23-cites-easing-inflation-stronger-reserves/
- Investing.com and Trading Economics, Central Bank of Egypt decisions. https://tradingeconomics.com/egypt/interest-rate
- Dailynewsegypt (CBE inflation, September 19, 2026) and Enterprise (September 13, 2026). https://www.dailynewsegypt.com/2026/09/19/cbe-explains-drivers-behind-inflation-slowdown-in-august-2026/
- Reuters via CNBC Africa, "Ethiopia central bank raises policy rate, cites oil price shock," July 13, 2026. https://www.cnbcafrica.com/2026/ethiopia-central-bank-raises-policy-rate-cites-oil-price-shock
- Ecofin Agency, "DR Congo Central Bank Cuts Key Interest Rate to 12.5%." https://www.ecofinagency.com/news-finances/2007-57556-dr-congo-central-bank-cuts-key-interest-rate-to-12-5
- Nairametrics, "Top 10 African countries with the highest inflation rates as of July 2026" (Malawi). https://nairametrics.com/2026/08/25/top-10-african-countries-with-the-highest-inflation-rates-as-of-july-2026/
Methodology
This ranking orders African central banks by headline policy rate as of October 4, 2026, using Nairametrics' September 26 ranking cross-checked against Trading Economics and Wikipedia's rates table. Countries with the same rate share a rank and are listed alphabetically. Rates are not strictly comparable: most banks set a main policy rate, while Egypt's table uses the overnight deposit rate (its overnight lending rate is 20%). Sierra Leone's rate is the latest confirmed figure, and a September decision was scheduled for September 29. Real-rate calculations are ours and subtract the latest available inflation from the policy rate, using figures from different months. Central banks that do not publish a comparable policy rate are not ranked. Rates change at each committee meeting, and several fall due soon, including Egypt on October 29 and Nigeria on November 23 to 24, so the order may change.
