Ghana has been ranked as the African country with the highest lending rate, despite significant reductions in its policy rate over the past year, according to the African Development Bank's (AfDB) 2026 African Economic Outlook report.

The report places Ghana at the top among 44 African countries, with a lending rate of 14.0%. The Democratic Republic of Congo and Egypt followed in second and third positions, respectively.

According to the AfDB, easing inflationary pressures across the continent encouraged many central banks to reduce interest rates in 2025. On average, policy rates across Africa were cut by 0.98 percentage points during the year. When the first quarter of 2026 is included, the average reduction rises to 1.33 percentage points.

The report noted that Ghana was among four countries—alongside Sierra Leone, Egypt and the Democratic Republic of Congo—that reduced policy rates by eight percentage points or more due to rapidly declining inflation.

In Ghana, the Bank of Ghana lowered the Monetary Policy Rate (MPR) from 28.0% in early 2025 to 14.0% by May 2026, representing a reduction of about 14 percentage points. The move reflected improving macroeconomic conditions and a steady decline in inflation.

However, commercial lending rates remain relatively high. Data from the Bank of Ghana’s May 2026 Summary of Economic and Financial Data showed that the average lending rate stood at 16.33% in April 2026.

Although this marks a significant improvement from 20.58% recorded in January 2026, businesses and consumers continue to face high borrowing costs. The average lending rate fell to 19.17% in February and further to 17.74% in March before reaching 16.33% in April.

The Ghana Reference Rate, which serves as a benchmark for loan pricing by banks, also declined sharply from 15.68% in January 2026 to 10.06% in April 2026.

Despite these improvements, the Bank of Ghana decided to maintain the policy rate at 14.0% during its May 2026 Monetary Policy Committee meeting. The central bank cited potential risks to inflation and economic growth, including possible spillover effects from ongoing geopolitical tensions.

The Committee stated that it would continue to monitor economic developments closely and take appropriate policy actions when necessary to maintain stability.

In addition, the Bank of Ghana announced changes to the Dynamic Cash Reserve Ratio framework, introducing a uniform reserve requirement of 20% to be maintained in domestic currency. The new measure took effect on June 4, 2026.

While lower policy rates are expected to eventually reduce borrowing costs, the gap between the central bank's benchmark rate and commercial lending rates highlights the challenges that remain in transmitting monetary policy benefits to businesses and households.