Top 10 African countries with lowest interest rates.
The article provides the policy interest rates of African countries and the number of points they have grown by since the year began, as well as the growth of interest rates in relation to growing inflation rates. No single North African country is on this list.
What is Policy interest rates?
Policy interest rates denote the amount which a country’s central bank pays or charges commercial banks for their deposits or loans.
It is a complex indicator based on an economy’s inflation rate that partially reveals how strong the economy is.
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For business owners who depend on bank loans to keep their organisation running smoothly, a high interest rate is disastrous. Therefore, it goes without saying that a nation’s interest rates must be moderate for it to prosper.
Unfortunately, the majority of African nations have ludicrous and unworkable interest rates when compared to their inflation rates and overall economic results.
The average interest rate as of 2021 was 1.85%, according to globaleconomy.com, a research organisation that obtains trustworthy economic statistics on international nations.5 of the10 highest interest rates for the previous year were from African nations, with Madagascar having the highest at 38.34 and Brazil having the second-highest at 17.03. With 13.07, Rwanda came in second.
However, several African nations had recorded interest rates as high as 17%, 19%, and even 22% as recently as September 2022. Fortunately, some African countries still have a more than fair interest rate.
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Top 10 African countries with the highest interest rates in 2022
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Top 10 African countries with lowest interest rates.
Ten of these nations, as listed in the International Monetary Fund report, are listed below.
The focus of this article, however, is not necessarily on the nations with the lowest interest rates, but rather on those that have lately raised their rates in reaction to local inflation.
1. Botswana: Botswana currently has an interest rate of 2.50 and has grown by 0.50.
2. 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.
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3. Mauritius: This nation has an interest rate of 3.00 and has grown by 1.15 percentage points.
4. 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.
5. Namibia: Namibia has an interest rate of 5.50 percentage points and has grown by 1.75.
6. 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.
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7. Eswatini: This country’s current interest rate of 6.00 has grown by 2.25.
8. 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.
9. Lesotho: This small nation spots the exact figures as its big brother nation South Africa at 6.25, growing by 2.50 percentage points.
10. Kenya: The economic hub of East Africa, has an interest rate of 8.25, growing by 1.25 percentage points.
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