A new report by Fitch ratings agency has said that Ghana’s current account surplus is expected to decline by 3% in 2025, driven largely by a sharp reduction in United States foreign aid.
The projected drop follows the U.S. government’s decision to slash its funding to the United States Agency for International Development (USAID) by 90%.
Fitch noted that such cuts could significantly affect Ghana, where international aid, particularly from the U.S., which accounts for about 20% of the country’s total aid receipts and plays a major role in foreign exchange inflows.
USAID has historically supported key sectors in Ghana, including health, education, agriculture, and governance. The funding reduction, Fitch warned, could disrupt service delivery and development projects.
While other donor countries and increased remittances may cushion the blow, Fitch said these sources are unlikely to fully offset the financial gap left by the U.S. aid cut.
Despite the looming dip in aid, Ghana’s external position is expected to remain relatively strong.
After years of financial strain between 2021 and 2023, caused by global shocks such as the Russia-Ukraine war, interest rate hikes, and rising investor concerns, the country’s international reserves rebounded to $6.4 billion by the end of 2024.
Fitch credits this turnaround to a robust current account surplus, continued IMF disbursements, and reduced capital outflows.
Looking ahead, the agency projects Ghana’s gross international reserves could rise further to $8.8 billion by the end of 2025, offering about 3.5 months of import cover.
