Fitch upgrades Ghana’s credit rating to ‘B-‘; Outlook Stable

Global credit ratings agency Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘Restricted Default’ to ‘B-’, assigning a Stable Outlook.

• Ghana's credit rating has been upgraded from ‘Restricted Default’ to ‘B-’ by Fitch Ratings, with a Stable Outlook.
• Inflation has significantly decreased, reaching its lowest level in three years, supported by tighter monetary policies and improved currency stability.
• The Ghanaian economy has shown improved fiscal health, including higher gross international reserves and reduced public debt-to-GDP ratio.

This significant development reflects growing investor confidence in the West African nation’s economic recovery, spearheaded by Finance Minister Dr Cassiel Ato Forson.

Eurobond restructuring and external debt talks drive upgrade

Fitch’s positive assessment follows Ghana’s notable achievements in debt restructuring, particularly the successful renegotiation of $13.1 billion in Eurobond liabilities.

The country has also made substantial progress in discussions with its remaining external creditors and is expected to conclude the full restructuring process by the end of 2025.

The agency commended Ghana for restoring normal relations with the majority of its commercial lenders, suggesting that the country is re-establishing its financial credibility after a turbulent period.

Inflation falls to three-year low as Cedi strengthens

One of the most encouraging indicators highlighted in the report is Ghana’s rapidly declining inflation. The rate has fallen from 23% in 2024 to 18.4% in May 2025—the lowest level recorded in over three years. Fitch projects that inflation will continue to fall, averaging 15% in 2025 and dropping further to 10% in 2026.

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This downward trend is being driven by a combination of tight monetary policy, prudent fiscal management, and improved currency stability. The Ghanaian cedi has seen significant appreciation in recent months, reversing earlier depreciation trends and easing pressure on import prices, including fuel.

Fitch attributed the cedi’s turnaround to “renewed confidence in Ghana’s macroeconomic fundamentals and coordinated interventions by the Ministry of Finance and the Bank of Ghana.”

Public finances improve as debt and deficit decline

Under the direction of Dr Ato Forson, the government has implemented a robust economic recovery strategy focused on fiscal consolidation, debt sustainability, and rebuilding investor trust. Key achievements under his leadership include:

Public debt-to-GDP ratio Projected to fall to 60% in 2025 (from 93% in 2022) Gross international reserves Increased to $6.8 billion and rising Fiscal performance Primary surplus of 0.5% of GDP projected in 2025 Interest payments as share of revenue Down to 25% from a peak of 48% in 2021 Real GDP growth 5.7% in 2024; projected 4% in 2025 Senior officials at the Ministry of Finance attributed these improvements to “the Finance Minister’s bold and consistent policy direction”, adding that the upgrade “underscores the success of Ghana’s path towards economic stability.”

Fitch rating seen as catalyst for investor re-engagement

The upgraded rating is expected to enhance Ghana’s appeal to international investors, support the revival of domestic capital markets, and alleviate fiscal pressures.

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Dr Forson, speaking earlier this month, reaffirmed the government’s commitment to maintaining discipline: “We are building an economy that works for everyone. This upgrade is a signal that Ghana is back on track, and we will not relent in protecting the gains we’ve made.”

A turning point for Ghana’s economy

With inflation easing, debt levels falling, and currency stability returning, the latest upgrade by Fitch marks a turning point in Ghana’s post-default economic journey. Beyond signalling recovery to investors, it represents a renewed sense of hope for citizens anticipating a more stable and prosperous future.

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