S&P Global Ratings has upgraded Ghana’s long-term foreign-currency credit rating to CCC+ from Selective Default, citing strong progress in economic stabilization and reform implementation under Finance Minister Dr. Cassiel Ato Forson. The move marks a pivotal milestone for the West African nation’s post-crisis recovery and signals growing investor confidence in the country’s macroeconomic management.
The upgrade, announced on May 9, follows significant strides in Ghana’s external debt restructuring and macroeconomic rebalancing. S&P said negotiations with commercial creditors are nearing resolution, helping to restore fiscal credibility and ease financing pressures that had previously weighed on the sovereign’s outlook.
While acknowledging ongoing vulnerabilities, including elevated inflation and external shocks, S&P pointed to Ghana’s improved policy framework and the administration’s reform agenda as key drivers of the upgrade. Inflation remains high at 22%, but is trending downward amid a strengthening cedi and easing energy costs.
Under Dr. Forson’s leadership, Ghana has introduced a series of fiscal reforms, including amendments to the Public Financial Management Act, the reintroduction of fiscal rules, and plans to establish an independent fiscal council. These initiatives aim to tighten budget discipline and strengthen long-term debt sustainability.
The government has also shifted focus from tax hikes to expenditure-led consolidation in line with its IMF-backed Extended Credit Facility program. Officials target a primary surplus of 1.5% of GDP in 2025 and have committed to capping expenditure growth below 10% annually through 2028, down from an average of 28% over the past 20 years.
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As a result of these adjustments, S&P forecasts that Ghana’s public debt, net of liquid assets, will fall from 71.4% of GDP at the end of 2024 to 47.4% by 2028. Interest payments, which consumed nearly half of government revenue during the peak of the crisis, have declined to around 25% following successful domestic and external debt restructuring.
S&P noted that credible policy execution and a narrowing fiscal gap have laid the groundwork for macroeconomic recovery.
Despite the positive momentum, the agency flagged potential risks, including election year spending pressures and vulnerability to external shocks. However, it noted that the country’s reform track record and policy continuity are increasingly mitigating such concerns.
The upgrade is expected to enhance Ghana’s standing in global financial markets and could unlock further access to concessional financing. Analysts say it is also a testament to the government’s determination to steer the economy toward a more sustainable path.
With Dr. Ato Forson at the helm, Ghana’s finance ministry is receiving renewed praise for rebuilding fiscal credibility, setting the stage for what investors hope will be a more resilient and inclusive growth trajectory.
