Top 20 African countries with the highest lending interest rates

Last week the Central Bank of Nigeria (CBN) increased its interest rates to 14 percent, which many experts say is the highest in over a decade.

A recent report by the International Monetary Fund (IMF) states that public debt ratios across Africa have spiked to a 20-year high as countries on the continent pile up debts that they incurred to finance critical infrastructure in their respective countries.

Business Insider reports that these countries are struggling to repay the loans while many are already exposed to debt distress.

Recently the West African country of Ghana went back on its words and approached the IMF for a loan, thereby lending credence to the fiscal crisis report facing the countries on the African continent.

What is a lending interest rate?

Interest rates are usually set by respective countries’ central banks. The higher the rates, the more expensive the loans and this tend to discourage borrowing.