Ghana has recorded the highest drop in interest rates among 11 top African nations in 2025. This decline reflects efforts to stabilize the economy and encourage growth.
At the start of 2025, Ghana’s 91-day Treasury bill yield was around 28.42%. Recent data shows a sharp decline of 3.94 percentage points, bringing it down to 24.48%. The 182-day Treasury bill yield also fell by 3.58 percentage points to 25.39% .
This trend is likely to influence the Bank of Ghana’s monetary policy. Analysts expect a cut in the central bank’s policy rate, which stands at 27%. Lower rates could boost borrowing and investment.
Despite the decline, Ghana still has one of the highest interest rates in Africa, second only to Egypt. In contrast, Rwanda has the lowest rates, with 91-day and 182-day Treasury bills yielding 7.05% and 7.39%, respectively.
The drop in rates signals improved investor confidence and financial stability. Lower interest rates reduce borrowing costs for businesses and consumers, encouraging economic activity.
Ghana has faced economic challenges in recent years. In 2022, it defaulted on much of its $30 billion international debt. However, by October 2024, the country had restructured its public debt and reached a staff-level agreement with the IMF on a $3 billion loan review .
The economy has shown strong signs of recovery. Ghana’s GDP grew by 6.9% in the second quarter of 2024, the fastest in five years. Growth was driven by key sectors like gold, cocoa, and oil. Lower interest rates further support this recovery.
Challenges remain, however. Inflation, which had been falling, rose to 21.5% in September 2024 from 20.4% in August due to higher food prices. The government must continue working to maintain stability and ensure lower rates benefit the wider economy.
Ghana’s sharp decline in interest rates is a positive sign for economic growth. Government policies and financial sector reforms are helping create a stable investment environment.
