Ghana’s credit rating upgraded to ‘CCC+’ amid gold reforms and debt restructuring
Ghana’s creditworthiness has been boosted following a decision by SP Global Ratings to upgrade the country’s foreign currency rating from ‘SD’ (Selective Default to ‘CCC+’.
This follows sustained progress in debt restructuring and macroeconomic management, with key indicators such as gold export earnings and foreign exchange reserves showing notable improvement.
The upgrade, detailed in S&P’s May 9, 2025, assessment, comes on the back of the successful completion of Ghana’s domestic debt exchange program and ongoing negotiations with external creditors.
S&P also affirmed the ‘CCC+’ ratings on Ghana’s debt and maintained a stable outlook on both foreign and local currency ratings.
The development reflects growing investor confidence, strengthened by government initiatives like the establishment of the Ghana Gold Board.
The Board, aimed at streamlining the gold value chain, is already playing a critical role in formalising the sector and boosting export revenues.
The improved external liquidity position, supported by a surge in gold exports and a recovering cedi, is helping Ghana meet its short-term obligations more comfortably.
The cedi, which had crossed GH¢17 to the dollar in 2023, is now trading around GH¢14, helping curb import-driven inflation, now at 21.2%—the lowest in eight months.
This progress also follows Ghana’s October 2024 Eurobond exchange and the memorandum of understanding ratified with bilateral creditors in January 2025, seen as a cornerstone of its broader economic recovery. The gains have been linked by some to the policy groundwork laid during the tenure of former President John Dramani Mahama.
Despite the positive outlook, S&P cautions that downside risks remain. Should Ghana’s fiscal performance weaken, or financing conditions tighten, the country’s ability to service its debt could be jeopardised, placing renewed pressure on its fiscal and external stability.
According to a report by citinewsroom.com, the Finance minister Dr Cassiel Ato Forson has, however, downplayed fears of reversal, insisting that the recovery is rooted in “prudent and well-coordinated economic policies.”
He emphasised that the current gains are not fleeting but a testament to deliberate efforts to restore confidence and build a resilient macroeconomic foundation.
The government continues to implement fiscal reforms to tackle structural challenges, signaling its commitment to long-term economic stability and sustainable growth.
JKB/EB
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