Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has described the recent upgrade of the country’s sovereign credit rating by S&P Global Ratings as a powerful endorsement of government reforms aimed at economic recovery and fiscal discipline.
S&P announced on May 9, 2025, that it had raised Ghana’s foreign-currency rating from Selective Default (SD) to CCC+, citing progress on debt restructuring and improving macroeconomic fundamentals.
“This upgrade is a testament to the tireless efforts of the government and the Ministry of Finance to restore macroeconomic stability and rebuild investor confidence. It reflects the positive outcomes of our ongoing fiscal and structural reforms,” Dr. Forson stated.
The international ratings agency noted Ghana’s near-completion of external debt restructuring and a more stable macroeconomic environment. Inflation, while still high at 22%, is falling—driven by a firmer cedi and lower energy prices—contributing to renewed economic momentum.
Dr. Forson credited the gains to targeted reforms across the fiscal landscape.
“We have launched critical reforms, including amendments to the Public Financial Management Act, reintroducing fiscal rules, and initiating the process to establish an independent fiscal council. These actions are not just about stability today, but about institutionalizing discipline for generations to come,” he explained.
The government has opted for fiscal consolidation led by spending discipline, avoiding aggressive tax hikes despite inheriting significant arrears. Under the IMF’s Extended Credit Facility program, the country aims to generate a primary surplus of 1.5% of GDP in 2025, while holding expenditure growth below 10% annually over the next four years—well below historical averages.
Debt service costs have fallen substantially, with interest payments dropping from 48% of government revenue in 2021–2022 to around 25%, following successful restructuring. S&P projects public debt (net of liquid assets) to shrink from 71.4% of GDP in 2024 to 47.4% by 2028.
“This is not just a statistical upgrade; it is a validation of Ghana’s renewed credibility in the eyes of the global financial community. We are mindful of the challenges ahead, including election-related fiscal pressures and external shocks, but our trajectory is clear,” said Dr. Forson.
He reaffirmed government’s commitment to responsible governance and sustainable growth.
“This recognition by S&P is a strong signal to our international partners and investors that Ghana is back on a path of resilience, discipline, and long-term prosperity.”
Read the full statement below:
