Ghana overtakes Egypt with highest interest rates among top 15 African economies

Ghana has overtaken Egypt with the highest interest rates among 15 top countries in Africa.

According to the Weekly Fixed Income Update compiled by some investment firms, Ghana rose above Egypt with 24.39% percent and 26.03% for the 91-day and 182-day treasury bills respectively, making it the highest among the top 15 African economies.

Egypt, on the other hand, ranked second among the top 15 African countries with 23.41% and 24.02% for the 91-day Treasury bill rate and 182-day Treasury bill rate respectively.

Following the completion of the Domestic Debt Exchange Programme (DDEP), interest rates in Ghana declined significantly back in March 2023. The rates have since surged on a consistent basis to about 30% (364-day bill) since the period.

Also, within the same period in March, the 91-day T-bill and 182-day T-bill declined by 10.97% and 9.95% respectively.

The development has however ranked Ghana with the highest in interest rates globally while the average lending rates in the country is going for around 38 percent, placing Ghana among the highest in Africa.

Some economic analysts and market watchers have since cautioned of a further surge in the interest rates especially at a time when the government is seeking additional liquidity to finance its projects.

Meanwhile, the Monetary Policy Committee of the Bank of Ghana is expected to hold its 113th scheduled meeting to decide on the next policy rate decision from the current 29.5 percent to curtail inflationary pressures.

MA/QON

Watch the latest edition of BizTech below: