10 African countries whose citizens may find it hard to borrow money owing to high-interest rates

Business Insider presents African countries with the highest interest rate.
This list is courtesy of Trading Economics, an economics data/research platform.
Zimbabwe has the highest interest rate at 150%, and this is despite a massive decrease of 50% in February 2023.

The effect of a high-interest rate on a country has varied effects, ranging from economic growth to financial instability. When a country has a high-interest rate, it generally means that it is more expensive for those living in the country to borrow money, making it more difficult for them to purchase goods and services. This can lead to reduced consumer spending, which can have a negative effect on the country’s economy. Additionally, businesses may be more reluctant to invest and expand, resulting in a slowdown in economic growth.

The high-interest rate can also lead to a decrease in the value of the country’s currency. This is because foreign investors may be less likely to invest in a country with a high-interest rate, causing the currency to depreciate in value. This depreciation can lead to a decrease in the country’s exports, as its products become more expensive for foreign buyers.

On the other hand, a high-interest rate can also have some positive effects. For example, it can encourage saving and can help to reduce inflation. This is because a high-interest rate causes people to save money rather than spend it, thus reducing the amount of money in circulation. This decrease in the money supply can help to reduce prices and, in turn, inflation.

Despite the potential positive effects of a high-interest rate, it is important to consider its potential negative implications. A high-interest rate can lead to a decrease in consumer spending, a decrease in foreign investment, and a decrease in the value of the country’s currency. Therefore, it is important for countries to consider the potential effects of a high-interest rate before implementing it.

On this note, some African countries have struggled with excessively high-interest rates, especially Zimbabwe, which prior to February, had an interest rate of 200%, the highest in the world. Currently, the country has an interest rate of 150%.

Below are 9 other countries that follow behind Zimbabwe in their interest rates. This list of courtesy of Trading Economics, a data platform that provides its users with accurate information for 196 countries including historical data and forecasts for more than 20 million economic indicators, exchange rates, stock market indexes, government bond yields, and commodity prices.