For businesses, low-interest rates can provide a much-needed boost to their bottom line. When interest rates are low, businesses can borrow money at a relatively low cost, allowing them to expand their operations and hire more workers. This can lead to increased productivity, as well as greater economic growth, which can benefit the entire country.
Low-interest rates also benefit consumers, as they can access more credit at lower rates, allowing them to make larger purchases and take out larger loans. This can help stimulate consumer spending, as people are more likely to make large purchases when they have access to cheaper credit. Furthermore, lower interest rates can also make it easier for people to save money, as they can earn more interest on their deposits.
In addition, low-interest rates provide a boost to the housing market, as they make mortgages more affordable. This can lead to an increase in homebuyer activity, which can further stimulate the economy.
Overall, the benefits of a country having a low-interest rate are vast and far-reaching. Not only can it provide businesses with an opportunity to invest and expand, but it can also help stimulate consumer spending and provide a boost to the housing market. Ultimately, low-interest rates can help a nation’s economy grow and prosper.
Below are the African countries currently with the lowest interest rates according to Trading Economics, an economics data/research platform. This list is a follow-up to the 10 African countries whose citizens may find it hard to borrow money owing to high-interest rates.
| Rank |
Country |
Interest Rate |
|
1.
|
Cape Verde
|
0.25%
|
|
2.
|
Seychelles
|
2.0%
|
|
3.
|
Morocco
|
2.5%
|
|
4.
|
Botswana
|
2.65%
|
|
5.
|
Algeria
|
3.0%
|
|
6.
|
Libya
|
3.0%
|
|
7.
|
Cameroon
|
4.5%
|
|
8.
|
Central Africa Republic
|
4.5%
|
|
9.
|
Chad
|
4.5%
|
|
10.
|
Equatorial Guinea
|
4.5%
|
