Ghana's economic recovery efforts have received a significant boost with S&P Global Ratings upgrading the country's foreign-currency sovereign credit rating from Selective Default (SD) to CCC+. This change reflects increased investor confidence and positive economic management under Finance Minister Dr. Cassiel Ato Forson.
The announcement on May 9, 2025, follows Ghana's progress in restructuring its external debt and stabilizing its macroeconomic environment after years of challenges. S&P’s report indicates that negotiations with remaining commercial creditors are nearing completion, restoring credibility and easing fiscal pressure.
S&P acknowledges ongoing challenges but notes the administration's commitment to reforms is showing benefits. Inflation remains high at 22% but is decreasing due to a stronger cedi and lower energy prices. The report credits strong policy direction from the Ministry of Finance under Dr. Forson.
Dr. Forson's leadership has initiated key legislative reforms, such as amending the Public Financial Management Act, reinstating fiscal rules, and establishing an independent fiscal council to ensure prudent public finance management.
Despite inheriting substantial fiscal arrears, the government focuses on expenditure-led consolidation rather than aggressive tax increases, aligning with conditions under the IMF’s Extended Credit Facility program. The administration aims for a primary surplus of 1.5% of GDP in 2025 and plans to keep expenditure growth below 10% annually over four years.
S&P projects Ghana’s public debt will decrease from 71.4% of GDP at end-2024 to 47.4% by 2028. Interest expenditure has reduced from a crippling 48% of government revenue in previous years to about 25% following debt restructuring. Although inflation remains above target, it is expected to decline gradually as monetary policy credibility improves.
The upgrade by S&P signals to international investors and development partners that Ghana is making significant progress. While acknowledging risks like election-year spending pressures and external vulnerabilities, S&P highlights improving external metrics, steady policy reforms, and a supportive growth outlook as reasons for the higher rating.
With Dr. Ato Forson leading the Finance Ministry, Ghana appears on track for improved economic management — likely enhancing investor sentiment and setting the stage for sustainable growth.
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