Fitch Upgrade: What Ghana’s New Credit Rating Means for You and Your Business

Fitch Ratings has upgraded Ghana’s credit score from “restricted default” to B minus. That may sound like financial grammar for experts only, but make no mistake, it can mean a lot since it can shape everything from the price of kenkey to the cost of your next bank loan.

What changed?

Ghana defaulted on its debts in 2022. That meant the government admitted it couldn’t keep up with payments. So, it entered into negotiations with domestic and international creditors to restructure its debt. Prior to that, the dire economic situation has necessitated the introduction of E-Levy leading to the scrapping of road toll.  The E-levy, which was seen as an antidote to the countries economic challenges failed to generate the anticipated revenue.

The government had no option than to surrender to the IMF in 2022 for rescue. This lead to the $3 billion IMF sponsored extended credit facility. The program did come on silver platter. It came with stringent conditionalities and a strict belt tightening.

Now, after years of belt-tightening, Fitch is saying, “We see progress.” The B minus rating isn’t perfect, it’s still below investment grade, but it means Ghana has stepped away from the danger zone.

What does it mean for the average Ghanaian. Let’s break it down in everyday terms.

 Prices may slow down

A stronger credit rating makes Ghana look less risky to investors, which can bring more dollars into the system. That helps stabilise the cedi.

Example:

Let’s say you usually buy a bag of imported rice for GH¢800. If the cedi stays weak, that price could rise to GH¢900 or more. But if the cedi strengthens, you might see that same bag go for GH¢750 instead. It also affects fuel, if exchange rates improve, that GH¢14 per litre price might not shoot up so quickly anymore.

Less pressure for more taxes

If the government can borrow money more cheaply, it doesn’t have to rely as heavily on taxes to fill budget gaps.

Example:

Think of the annual budget cycle. Without foreign help, government might turn to VAT hikes or new levies like the COVID levy or bet taxes to raise funds. A better credit rating eases that pressure, which means fewer surprise deductions when you cash out mobile money or pay for goods at a supermarket.

Job creation slowly picks up

When investors see Ghana as less risky, businesses begin to plan for the long term again expanding, building, and hiring.

Example:

If a construction company in Kumasi or Takoradi was holding off a new project because of forex uncertainty, this upgrade may encourage them to go ahead. That could mean more jobs for masons, carpenters, and suppliers. Even delivery riders and market women benefit when such economic activity increases.

What this means for businesses

Banks may be more willing to lend

Improved creditworthiness makes the financial environment less risky, which helps lower lending costs and opens access to capital.

Example:

An agro-processing SME in Tamale looking for a GH¢500,000 loan may now get better repayment terms, or simply get approved when they would have been rejected two years ago. It makes it easier for people to restock, expand farms, or invest in equipment.

Foreign investors take a second look

Ghana begins to look more attractive to investors scouting for opportunities in Africa.

Example:

A European firm considering a tomato processing plant in Central Region might have shelved the idea in 2022 due to instability. But with a better rating, they may now restart conversations with the Ghana Investment Promotion Centre (GIPC) or even partner with local cooperatives.

Confidence in local investment returns

Even Ghanaians who had stopped buying treasury bills, bonds, or investing in local stocks may start returning.

Example:

Someone in Cape Coast who pulled out of the Ghana Stock Exchange in 2022 might now be willing to invest in a listed company like Fan Milk or GCB again. That’s how market confidence builds.

The Bottomline

This credit rating upgrade isn’t magic. It won’t instantly fix fuel prices or reduce food costs at the market. But it’s a sign that things are slowly shifting in the right direction. And for everyday Ghanaians, from the tomato seller in Kaneshie to the Bolt driver in Sunyani and the tech entrepreneur in East Legon, that signal matters. However, Ghana still has work to do, for now, this is one small win on the long road to economic stability.

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