Joe Jackson, the acting CEO of Dalex Finance, has called on the government to maintain fiscal discipline following the recent upgrade of Ghana’s credit rating by Moody’s. He stressed the importance of keeping expenditures within budget, particularly as the country heads into an election year.
“Those in power must continue to curb spending and remain within the budget to protect the gains we have made,” Jackson said. His caution comes as the country seeks to solidify its recovery from the economic crisis that hit the country in 2022.
The recent upgrade by Moody’s moved Ghana’s credit rating from Caa3 to Caa2, signaling a positive shift in the nation’s financial stability. The change follows a successful restructuring of $13 billion in Eurobond debt, which saw approval from 98 percent of bondholders.
Moody’s pointed to this debt overhaul as a critical step in improving Ghana’s fiscal outlook, along with enhanced fiscal performance in reducing budget deficits, and improving debt sustainability.
Jackson highlighted that this improved rating could lead to tangible benefits for the country, such as lower interest rates in international capital markets and a boost in foreign direct investment. He noted, “The upgrade signals that Ghana is taking steps to come out of the pit we were in, in 2022, when we were downgraded, unable to pay our debts, and faced a severe economic crisis.”
In 2022, Ghana defaulted on nearly $30 billion in debt, creating a financial crisis that rippled through the economy. Jackson emphasized that the Moody’s upgrade is an early but crucial step towards recovery, with Ghana having renegotiated terms with its creditors. The improved rating is expected to strengthen investor confidence in the country.
Moody’s credit upgrade also reflects policy reforms designed to enhance business competitiveness and attract investment. The rating agency acknowledged the resilience Ghana has shown in the face of economic adversity and the government’s commitment to fiscal discipline.
A higher credit rating opens the door for Ghana to access international capital markets under more favourable terms, increasing the country’s ability to secure financing for development projects. Jackson expressed optimism about the path forward, urging continued responsible governance to ensure that the positive momentum is sustained.
