Ghana maintained its position with the highest interest rates in Africa in 2023 despite a decline in Treasury bill yields.

According to Fixed Income Update by some investment firms, the rates of about 29.24% and 31.88% for the 91-day and 182-day treasury bills respectively, remain high.

The yields on the 91-day and 182-day fell by 6.12% and 4.10% respectively in 2023.

However, the rates are still elevated, increasing the government’s cost of borrowing on the domestic market.

Despite the rates falling significantly in March 2023 due to the Domestic Debt Exchange Programme, the fall in the yields was short-lived.

Again, average lending rates hover around 32%, ranking Ghana among the highest on the African continent.

However, some analysts are hopeful treasury yields will decline in 2024, potentially sharper along the year as investor sentiments improve.

They, however, warned that election-related fiscal risks and its pass-through to inflation remain a risk to the outlook for the yields.

Meanwhile, Egypt followed Ghana closely with the second highest interest rates in Africa (91-day bill: 25.68%, 182-day bill: 25.95%).

Cape Verde and Seychelles, however, recorded the lowest interest rates in Africa.

Some African countries with highest interest rates

COUNTRY	INTEREST RATE (91-DAY BILL)	RANKING
Ghana	29.24%	1st
Egypt	25.68%	2nd
Kenya	15.98%	3rd
Malawi	14.70%	4th