Countdown of African Nations with the Greatest Sovereign Bond Interest Rates in 2025
In the economic landscape of Sub-Saharan Africa, several nations have set their benchmark interest rates for government-issued sovereign bonds, with Nigeria leading the pack at 27.50%. Malawi follows closely with an agreed interest rate of 26%, while Gambia has maintained a steady 17.42% since 2002, and Liberia stands at 19.12% since 2019.
Egypt, on the other hand, has seen a fluctuating interest rate. It pegged its interest rate at 25.50% after its April 2025 general meeting, following a decline from an all-time high of 13.6% in March 2025. Meanwhile, Zimbabwe holds the highest interest rate on its sovereign bonds at 35%, a figure that continues to be the highest on the continent.
Sierra Leone has witnessed a significant drop in interest rates over the years. After reaching an all-time high of 27.00% in October 2000, the country slumped to its lowest interest rate of 9.50% in March 2015. The government of Sierra Leone currently benchmarks its interest rate at 24.75%.
Interestingly, the three Sub-Saharan African countries with the highest interest rates in 2025 are yet to be explicitly named in the available data.
Economic struggles persist in Zimbabwe despite the launch of the gold-backed ZIG currency last year. The country continues to grapple with tight liquidity, high inflation, and foreign currency shortages.
In a positive note, the central bank of Angola has taken steps to stimulate its economy. It reduced the liquidity absorption rate of investors by 100bps to 17.5% and relaxed the reserve requirement ratio for commercial banks by 100bps to 20%.
The interest bill on public external debts in Sub-Saharan Africa is projected to be approximately $20 billion in 2025. This figure represents 3.4% of the total GDP between 2025 and 2027 of the region combined.
Sub-Saharan African nations dominate 90% of the top 10 countries offering the highest 10-year sovereign bond yields in 2025. The continent also bears a debt burden of approximately $100 billion from the IMF and World Bank.
Ghana agreed to a sovereign bond interest rate of 28% after a March 2025 meeting, while Congo offers a 25% interest rate to investors in its sovereign bonds. Congo's interest rate history is marked by significant fluctuations, reaching an alarming all-time high of 70.00% in January 2010 and a record low of 2% just 3 years later in November 2013.
As the economic landscape of Sub-Saharan Africa continues to evolve, it is crucial to monitor these interest rates and their impacts on the region's economies.
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