15 African Countries With The Highest Mortgage Interest Rates


The inefficiency of the mortgage sector in Africa and high mortgage interest rates are major obstacles

Unfortunately, owning a home anywhere in Africa can be very difficult. This is due to a number of factors including the fact that the mortgage industry in Africa is not really very reliable and accessible to those who need it. There is also the problem of high mortgage interest rates.

This explains why many people in Africa prefer to build their own house from scratch. Unfortunately, this process can often take years due to the high cost of doing it. In the 2018 open access book Housing market dynamics in Africaauthors El-hadj M. Bah, Issa Faye and Zekebweliwai F. Geh detailed the conundrum of construction costs in Africa.

Note that the inefficient housing finance market is one of the major causes of housing shortage crises in Africa. Now, two questions that many Africans (especially young adults) are asking are:

  • Why is the mortgage sector in Africa almost inaccessible to those who need it?
  • Why are mortgage interest rates generally so high in African countries, compared to other parts of the world?

These are perhaps questions that only African banks, regulators and lawmakers can answer.

What is the mortgage interest rate?

According to The Balance, “a mortgage interest rate is a percentage of your total loan balance that is paid monthly until your mortgage is paid off, plus your principal repayment. It is an element in determining the annual cost to borrow money from a lender to buy a house or other property.”

14 African countries with the highest mortgage interest rates

In the meantime, let’s focus on 15 African countries that have the highest mortgage interest rates. In one of these countries, mortgage interest can reach 50%!

It is important to note that this list was compiled using data provided by Statista.

  1. Zimbabwe: Has a mortgage interest rate of 50%.
  2. Zambia: Has a mortgage interest rate of 30%.
  3. Angola: Has a mortgage interest rate of 24%.
  4. Mozambique: Has a mortgage interest rate of 22%.
  5. Malawi: Has a mortgage interest rate of 21%.
  6. Sierra Leone: Has a mortgage interest rate of 21%.
  7. Uganda: Has a mortgage interest rate of 19%.
  8. Democratic Republic of Congo: Has a mortgage interest rate of 19%.
  9. Gambia: Has a mortgage interest rate of 18%.
  10. Rwanda: Has a mortgage interest rate of 18%.
  11. Madagascar: Has a mortgage interest rate of 17%.
  12. Sudan: Has a mortgage interest rate of 17%.
  13. Ghana: Has a mortgage interest rate of 17%.
  14. South Africa: Has a mortgage interest rate of 16%.
  15. Nigeria: Has a mortgage interest rate of 16%.
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