Despite achieving significant milestones in debt restructuring, Ghana is set to encounter severe liquidity pressures in 2025 and 2026, according to Fitch Ratings.
The global rating agency projects Ghana’s interest rate-to-revenue ratio to remain one of the highest among Fitch-rated sovereigns, signaling continued fiscal challenges.
Thomas Garreau, Associate Director for Europe, Middle East, and Africa Sovereign Ratings at Fitch, highlighted the critical nature of Ghana’s fiscal position.
“Ghana will still face significant liquidity pressures,” Garreau said, noting that the country’s interest rate-to-revenue ratio is estimated at 29% in 2025 and 30% in 2026, almost double the emerging markets average of 16%.
While Ghana has made notable fiscal adjustments, including a 4.6-percentage point primary fiscal improvement between 2022 and 2024, these measures are insufficient to mitigate the looming liquidity risks.
The report underscores the necessity of “drastic measures” to improve Ghana’s fiscal health. Analysts stress the importance of enhancing revenue mobilization, curbing public spending, and implementing structural economic reforms to build resilience against external shocks.
