Government is allaying fears that it won’t ride on the recent credit ratings upgrade by Fitch to go on a borrowing a spree as feared by some analysts.
Fitch Ratings recently upgraded Ghana’s credit ratings from Restricted Default to B- with a Stable Outlook. This signals that the country’s economic recovery programs are on track.
The improved credit ratings signal to investors, businesses, and everyday Ghanaians that the country is making progress. For finance professor at Purdue University Northwest, Prof. Pat Obi, the upgrade is a vote of confidence of some sort. He says it is a positive signal that can boost both investor and consumer confidence, which is a powerful ingredient for economic growth.
Following the upgrade in credit ratings, there are growing concerns that it will prompt the government to go on a borrowing spree. Amid the fears, the government has moved swiftly to allay public concerns that the improved rating may tempt authorities to return prematurely to international borrowing.
Economic Advisor to the Vice President, Dr. Sharif Mahmud Khalid, emphasized that while the upgrade is a positive signal, it is not a cue to resume external debt accumulation.
He therefore stressed that the government is not in a rush to enter the international capital market despite the improved conditions.
“This rating is not just for us to celebrate and go back to borrowing. We are not getting bullish. We are focused. We want to stabilise the domestic market first. This is for the external market, which we are not ready as of yet to even start pushing through,” he said in an interview with Accra-based JoyNews monitored by The High Street Journal.
Dr. Khalid did not entirely discount the plans to enter the capital market. He clarified that, for now, the government is more concerned about stabilizing the domestic market.
He said “We believe in stabilising the domestic market, which is why we have internal controls.”
The economist’s clarification brings some assurances to Ghanaians, investors, and development partners that the government is determined to stay disciplined and prioritize long-term economic stability over short-term capital inflows.
The Fitch upgrade comes after sustained fiscal and structural reforms under Ghana’s IMF-supported programme. It reflects improved confidence in Ghana’s policy direction but still places the country in the “speculative grade” category, signaling that while default risks have eased, the country remains in a recovery phase.
