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In a major boost to Ghana’s financial credibility, international credit rating agency Fitch Ratings has upgraded the country’s long-term foreign-currency issuer default rating (IDR) from “Restricted Default (RD)” to ‘B-’ with a Stable Outlook. This significant shift, announced on June 16, 2025, marks Ghana’s formal exit from default status and places the country back on the path toward regaining full access to international capital markets.
The upgrade follows Ghana’s steady progress in normalizing its debt obligations after defaulting on its external debts in 2022. Over the past two years, the government has negotiated successfully with both commercial and bilateral creditors. A notable breakthrough came in late 2024, when Ghana restructured approximately $13.1 billion in Eurobonds, securing new terms that included maturity extensions and interest payment adjustments. As of June 2025, the government is also in the final stages of concluding debt treatment agreements with bilateral creditors under the G20 Common Framework.
Fitch cited Ghana’s improving macroeconomic stability, prudent fiscal management, and commitment to structural reforms as the primary reasons for the upgrade. Key indicators support this positive outlook: inflation, which peaked above 50% in 2022, dropped to 18.4% in May 2025, and is projected to fall further to around 15% by the end of 2025 and 10% in 2026. Meanwhile, the Ghanaian cedi has stabilized, and gross international reserves have increased to $6.8 billion, representing about three months of import cover an important cushion for the country’s balance of payments.
On the fiscal front, the government has taken decisive steps to consolidate its budget. The Ministry of Finance, under the leadership of Cassiel Ato Forson, implemented new spending controls in March 2025 aimed at reducing deficits. Fitch expects Ghana to record a primary surplus of 0.5% of GDP in 2025, up from a deficit of 1.7% in 2024. Furthermore, debt-to-GDP levels, which once exceeded 90%, are now projected to fall to around 60% by 2026, assuming continued reform implementation and economic growth.
President John Dramani Mahama, who was sworn into office in January 2025, has reinforced commitments to fiscal discipline, economic transformation, and inclusive development. His administration’s policy continuity and transparency have helped restore investor confidence and maintain the credibility of Ghana’s ongoing International Monetary Fund (IMF) program. The IMF has already disbursed over $1.8 billion out of the $3 billion Extended Credit Facility, following positive program reviews.
The Fitch rating upgrade is expected to encourage foreign direct investment, improve access to credit markets, and lower Ghana’s borrowing costs over time. While the ‘B-’ rating still places Ghana in the non-investment grade category, it represents a significant move away from default status and sends a strong signal to global markets that the country is on a path to sustainable recovery.
However, Fitch also noted potential risks that could derail this progress. These include delays in finalizing debt restructuring agreements, possible slippage in fiscal discipline due to political pressures, and vulnerability to external shocks such as commodity price fluctuations or tightening global financial conditions. Debt service, although reduced, still accounts for a sizable portion of government revenue estimated at 25-26% in 2025.
In conclusion, Ghana’s upgrade to ‘B-’ with a Stable Outlook is a clear sign of renewed economic resilience and effective policy reforms. With continued focus on debt sustainability, inflation control, and structural transformation, the country is poised to make further strides toward achieving investment-grade status in the coming years. This positive development marks a turning point for Ghana, as it seeks to rebuild international confidence, stimulate growth, and deliver improved living standards for its citizens.