High interest rates and a lack of transparency continue to undermine access to credit across Africa, the African Consumer Organization (OAC) said Friday, following the release of a pan-African survey on financial services.
The survey, covering 10,655 respondents across 23 countries, highlights persistent challenges in lending conditions, with many consumers reporting dissatisfaction with borrowing terms and limited trust in financial institutions.
“Access to affordable credit remains a major concern for African consumers. High lending rates and opaque practices are eroding confidence and limiting financial inclusion,” said Dr. Emmanuel Sogadji, OAC executive director and president of the Togolese Consumer League (LTC).
Survey findings
The OAC survey found that 71 percent of consumers view lending rates as non-competitive across African markets, while 54.1 percent report insufficient clarity on interest rates, and nearly 60 percent cite inadequate information on repayment timelines.
Nearly 28 percent of respondents expressed dissatisfaction with credit allocation and recovery conditions, while 31.8 percent reported a neutral stance, signaling weak trust in lenders. Additionally, 58 percent of consumers described recovery procedures as too restrictive, indicating concerns about aggressive or burdensome debt collection practices.
The survey reflects persistent challenges in credit access, particularly in West Africa, where high borrowing costs, stringent requirements, and complex terms continue to limit financial inclusion. Despite these issues, respondents gave relatively positive feedback on customer service, suggesting some improvement in client relations within financial institutions.
Policy implications
The OAC called on policymakers and regulators to strengthen transparency, enforce consumer protection, and expand financial literacy programs to rebuild trust in the sector.
“Authorities should use these findings as a guide for reforms aimed at improving access to fair and understandable credit,” Sogadji said.
Analysts say the survey underscores a broader structural problem: although Africa has experienced rapid growth in banking penetration, the quality and affordability of financial services have not kept pace with demand. High interest rates and unclear terms disproportionately affect small-scale borrowers and first-time credit users, limiting opportunities for entrepreneurship and economic participation.
Financial experts also note that the rise of digital lending platforms has not fully addressed the transparency gap. While mobile-based loans offer convenience, many users still struggle to understand interest calculations, repayment schedules, and hidden fees.
Regional trends
Although the OAC did not provide country-level breakdowns, the survey indicates similar credit conditions across multiple national markets. Borrowers continue to face high borrowing costs, restrictive access conditions, and limited guidance on managing loans effectively.
The report comes at a time when African governments and regional bodies are seeking to expand financial inclusion as part of broader economic development strategies. Experts emphasize that improving transparency, capping excessive interest rates, and promoting consumer education are essential steps to ensure equitable access to credit.
“Rebuilding consumer confidence is as important as increasing credit availability. Without trust, even innovative financial services will fail to reach those who need them most,” Sogadji said.
The OAC plans to continue monitoring lending practices and will release follow-up studies to evaluate the impact of reforms and track improvements in consumer satisfaction over time.
As African economies seek to stimulate growth through increased access to finance, addressing high rates, opaque terms, and weak trust will remain critical for ensuring that credit serves as a tool for empowerment rather than a source of financial strain.
