Keypoints:
- Fitch lifts Ghana’s rating to ‘B-’ from restricted default
- Debt restructuring on track for completion by end-2025
- Mahama government pledges deep fiscal reforms
GLOBAL ratings agency Fitch has upgraded Ghana’s long-term foreign currency rating to ‘B-’, lifting it out of ‘restricted default’ status, in a significant vote of confidence for the country’s economic recovery efforts.
Fitch said on June 16 that Ghana had normalised relations with a substantial majority of its external commercial creditors and is on track to complete its debt restructuring by the end of 2025.
This marks a major milestone for the gold- and cocoa-producing nation, which is emerging from its most severe financial crisis in decades following spiralling inflation, currency depreciation, and fiscal distress that forced a debt default in 2022.
Reforms and rising investor confidence
The ratings upgrade reflects growing optimism among creditors as Ghana implements wide-ranging reforms under the IMF’s $3bn programme. Fitch highlighted progress in restructuring eurobond and bilateral debts as critical to improving liquidity and restoring investor trust.
In May, rival agency S&P Ratings also revised Ghana’s foreign currency rating, raising it from ‘selective default’ to ‘CCC+’, citing signs of improved creditworthiness and fiscal control.
Fitch warned that while risks remain high, Ghana’s demonstrated ability to manage its obligations and engage constructively with creditors has improved its outlook.
Mahama government pledges spending cuts
President John Dramani Mahama, who returned to power in January, has made economic stabilisation a top priority. His administration has promised to revive growth, create jobs, and strengthen public finances.
Finance Minister Cassiel Ato Forson, appointed earlier this year, announced in March that the government would implement steep spending cuts to restore macroeconomic stability. The cuts aim to reduce the budget deficit and free up resources for targeted social investment.
‘We are committed to a credible fiscal path that restores growth and creates space for investment,’ Ato Forson said at the time.
Road ahead remains challenging
Despite the positive momentum, Ghana faces persistent economic hurdles. Inflation, while easing, remains above pre-crisis levels, and the cedi remains vulnerable to external shocks. High debt service costs and limited access to international capital markets continue to constrain growth.
Fitch noted that future upgrades would depend on Ghana’s ability to fully implement the restructuring, maintain fiscal discipline, and rebuild external buffers.
Still, the current upgrade signals Ghana’s re-emergence from default status and could reduce borrowing costs while enhancing access to new financing as it moves toward a more stable economic future.
