Fitch Ratings upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating to “B” from “B-”, citing a sharp decline in public debt, stronger economic growth, improved fiscal discipline and a surge in international reserves, in a move that signals rising confidence in the country’s post-debt restructuring recovery.
The ratings agency assigned Ghana a Positive Outlook, indicating the potential for a further upgrade if authorities sustain fiscal prudence, continue rebuilding external buffers and preserve macroeconomic stability.
“The upgrade reflects a sharp fall in public debt/GDP, supported by robust real GDP growth, substantial fiscal consolidation efforts and currency appreciation,” Fitch said in its rating action commentary.
The decision marks another significant milestone for Ghana, which restructured domestic and external debt under a broader economic recovery programme after a severe fiscal and balance-of-payments crisis.
Fitch said Ghana’s public debt trajectory had improved faster than expected, forecasting debt to fall to 46% of GDP by 2027, below the median for countries in the ‘B’ rating category.
READ ALSO
“This follows a 21pp fall in 2025 driven by a sharp appreciation of the cedi and robust fiscal consolidation,” the agency said.
The ratings firm also pointed to a marked improvement in Ghana’s external position, with unencumbered international reserves rising by $5.4 billion in 2025 to $12.3 billion, helping reduce external liquidity risks and strengthen the country’s capacity to meet debt obligations.
“Large current account surpluses, net FDI inflows and net disbursements from multilateral partners will contribute to continued accumulation of international reserves,” Fitch said.
Ghana’s economic rebound has been supported heavily by strong gold exports, a more stable currency and declining inflation, which slowed to 3.2% year-on-year in March 2026, its lowest level since 1999, according to Fitch.
The agency said it expects Ghana’s economy to remain resilient, forecasting average real GDP growth of about 5% through 2027, supported by gold production, improved consumer confidence and easing borrowing costs.
Still, Fitch cautioned that risks remain, particularly around debt servicing costs and the need for continued reform.
It said interest payments would remain high relative to government revenue, even as broader macroeconomic conditions improve, while future gains would depend on “continued fiscal prudence underpinned by improved public financial management.”
The Positive Outlook suggests Ghana could secure another ratings upgrade if reforms remain on track, but Fitch warned that weaker fiscal performance, rising inflation or failure to strengthen reserves could reverse progress.
