There is a growing confidence in Ghana’s economy as international ratings agency S&P Global Ratings has upgraded Ghana’s credit score from CCC+ to B-.
This signals that the country’s economic recovery efforts are finally gaining traction. The upgrade, announced on November 7, 2025, also raised Ghana’s short-term rating to B, with a “stable” outlook, meaning S&P expects things to stay on track in the near future.
This marks Ghana’s highest rating since its 2022 debt default and follows what S&P calls “gradually strengthening balance of payments and fiscal positions.” In simpler terms, this means that Ghana is earning and managing its money better.
What the Upgrade Means
A higher credit rating tells the world that Ghana is now seen as a safer place to lend money to. This could help the country borrow at lower interest rates and attract more investment.
S&P pointed out that Ghana’s finances are improving because the economy has stayed strong, inflation has dropped sharply, and export earnings, especially from gold and cocoa, have been significant. Together, these two exports make up more than 60% of Ghana’s goods sales abroad.
The agency expects Ghana’s foreign reserves to rise from $6.8 billion in 2024 to $10.4 billion by the end of 2025.
Reforms Paying Off
S&P’s decision also reflects confidence in Ghana’s new government, which took office in January 2025. The administration has introduced new spending rules to prevent overspending, which has been a recurring problem for successive governments.
One key policy is a rule that forces the government to keep a primary budget surplus of at least 1.5% of GDP every year. This means Ghana should earn more than it spends, excluding debt payments, to help bring public debt down to about 45% of GDP by 2034.
Inflation, which was above 20% at the beginning of 2025, has now dropped below 10%, and the cedi has strengthened by nearly 30% against the U.S. dollar.
Progress on Debt Restructuring
Another factor contributing to this favourable upgrade is that Ghana has also made steady progress in cleaning up its debt mess since the 2022 default. After completing local debt exchanges in 2023 and restructuring $13.1 billion worth of Eurobonds in 2024, the government is now negotiating the final stretch of about $5 billion owed to a few official and commercial lenders.
However, S&P observes that there are still disputes with some creditors, including the African Export-Import Bank and the Eastern and Southern African Trade and Development Bank, over how their debts should be treated.
There’s also a disagreement involving a set of commercial notes meant to fund Ghana’s health sector. S&P warns that these tensions could delay the full completion of the debt restructuring process.
Why the Outlook Is “Stable”
S&P says its “stable” outlook means Ghana’s progress could continue, but the country still faces real risks. The agency balanced optimism about stronger export earnings and spending controls against concerns about high debt payments and possible setbacks in reforms.
The biggest threats are falling gold or cocoa prices, slower exports, or a loss of fiscal discipline, especially if political pressures rise before the next election.
What Could Go Wrong and Right
S&P cautioned that Ghana’s rating could be downgraded again if the government loses control of its spending, debt costs rise, or foreign earnings drop sharply. It could also happen if disagreements with creditors drag on and stall the final part of the debt restructuring.
The country’s economy also remains vulnerable to bad weather and global price swings, since agriculture still contributes about 20% of GDP and gold remains its biggest export.
On the bright side, if Ghana keeps its budget tight, continues to cut debt costs, and builds up more foreign reserves, its credit rating could be upgraded again within the next 12 to 18 months.
For ordinary Ghanaians and businesses, that could eventually mean a stronger cedi, lower inflation, and more confidence from investors, all helping to make life a little easier.
The Bottomline
S&P’s upgrade is good news to both Ghanaians and the government, as the Minister for Finance, Dr. Cassiel Ato Forson, has described the development as “another feather in our cap.”
This is an indication that Ghana is slowly regaining the world’s trust after years of financial turbulence. But it’s also a reminder that the country’s recovery is fragile and depends on how well the government can stick to its reforms.
Read More