Fitch Upgrade Welcome, But Ghana Not Ready for Eurobond Market – Economist Warns

While Ghana’s recent credit rating upgrade by Fitch Ratings to ‘B-‘ with a stable outlook has been widely celebrated by government and financial sector leaders, a leading economist has urged caution against interpreting the development as a green light to re-enter the international capital markets.

Professor Patrick Asuming, an economist at the University of Ghana Business School, has pushed back against any notion that Ghana is now ready to issue new Eurobonds.

In an interview, he argued that the country’s current participation in an IMF programme, combined with unresolved fiscal weaknesses, makes such a move both premature and potentially damaging.

“You cannot enter the capital market as long as we are in the IMF programme. We will not enter the capital market even if our credit rating goes up to AA. That is what we are signed on to.” Professor Asuming asserted.

While the Fitch upgrade has sparked optimism in financial circles, Professor Asuming warned that the country’s past reliance on Eurobond issuances played a major role in deepening its debt crisis. He stressed that structural fiscal reforms, not external borrowing, should be the focus.

“In my view, we should not even be thinking of re-entering the market issuing new Eurobonds. The Eurobonds and this extensive external borrowing have been extremely problematic for the Ghanaian economy,”  he said.

Although Ghana has taken significant steps to stabilize its public finances in 2025, Asuming insists that long-term debt sustainability and deficit reduction require more than a temporary fix.

“We still have problems in the economy to fix. What we’ve done so far in 2025 is try to put government finances back in some order, but even with that, we are not completely out of the woods. The sustainable tax reforms that will bring in revenue on a consistent basis, we haven’t done that yet,” he noted.

Government Celebrates Ratings Milestone

Meanwhile, Finance Minister Dr. Cassiel Ato Forson hailed the Fitch upgrade as a key milestone in Ghana’s economic recovery efforts.

“This is a significant milestone. It reflects government’s unwavering resolve to fully revive the economy and deliver lasting relief and shared prosperity for Ghanaians,” Dr. Forson said in a public reaction.

Governor of the Bank of Ghana, Dr. Johnson Asiama, also echoed the optimism, describing the upgrade as a “clear indication of Ghana’s improving macroeconomic fundamentals and external sector performance.”

Speaking at the “Banking the Last Mile” industry event hosted by Absa Bank Ghana and the Ghana Association of Banks, Dr. Asiama emphasized that the positive outlook reflects sustained regulatory reforms, tighter monetary policy, and a rebound in foreign reserves.

Market Optimism Meets Policy Prudence

Ghana’s Eurobonds have seen modest recovery in pricing following the Fitch announcement, driven by improved investor sentiment. However, analysts agree that a return to international bond markets should be approached with caution, especially as debt restructuring negotiations continue under the G20 Common Framework.

“Rating upgrades are welcome but rebuilding trust and stability must come bond by bond, not by rushing back into unsustainable borrowing,” Professor Asuming said.

Read More