The overnight upgrade by S&P Global Ratings of Ghana’s sovereign rating from CCC+/C to B-/B marks a pivotal moment in the country’s economic revival. Nearly three years after the government suspended international debt servicing, policymakers now find their efforts rewarded, but the road ahead remains challenging.
On 7 November 2025, the New York-based agency raised both long – and short-term ratings for Ghana, citing renewed external confidence driven by greater export earnings, a stronger national currency, and firmer fiscal control. Foreign reserves have surged to nearly USD 11 billion around nine per cent of GDP up from USD 6.8 billion at year-end 2024.
● Export strength and fiscal discipline gain centre stage
The rebound is anchored in Ghana’s export-heavy economy. Benefiting from favourable global prices, gold and cocoa, which account for over 60 % of the country’s goods exports have bolstered foreign currency inflows.
Meanwhile, the cedi has appreciated by roughly 30 per cent this year, helping to tame inflation pressures. On the fiscal front, the incoming administration has instituted a rule requiring a primary surplus of 1.5 % of GDP annually and committed to reducing public debt to 45 % of GDP by 2034.
Economic activity is gaining traction too, with growth of 6.3 % in H1 2025 and a composite economic-activity index up 6.1 % in July compared to just 1.9 % a year earlier. Further, the creation of the Ghana Gold Board in March has channelled gold output more formally into licensed mechanisms, improving visibility and revenue capture.
● From crisis inception to renewed credibility
The country’s downgrade to CCC+/C in August 2022 followed a deep financing crisis; at one point interest payments consumed between 70 and 100 per cent of revenue, prompting suspension of Eurobond payments totalling USD 13.1 billion. Public debt had surged past 100 per cent of GDP by 2021. The latest upgrade therefore represents more than a technical shift. It signals renewed confidence in Ghana’s ability to service and manage its obligations.
● But caution persists
Despite the positive move, S&P remains cautious. Interest payments are still projected to absorb about 20 per cent of government revenue through 2028, though that represents improvement from earlier extremes. Continued disputes with some creditors and high levels of foreign-currency debt remain sticking points. Arrears of USD 1.86 billion by state-owned enterprises to power producers and non-performing bank loans at 23.6 % add to the concern. Moreover, the efficacy of the new fiscal framework remains untested through a full election cycle, a period when spending traditionally escalates.
● What this means
For Ghana, the upgrade means potentially lower borrowing costs and improved access to international capital, a lifeline as it rebuilds post-default. But the government must now deliver where it has promised: to sustain reform momentum, keep commodity earnings robust and resist the temptation of election-year excesses.
The message from the rating agency is clear: progress matters, but so does consistency. Ghana has earned this stride upwards now, it must walk the path firmly to preserve it.
Source: S&P Global
Author: Edem Latsu Nukafu
Edem Latsu Nukafu, a passionate communications professional dedicated to public relations, journalism, media strategy, and content development. He holds both a Diploma and Bachelor of Arts Degree in Communication Studies (Public Relations) from the University of Media, Arts and Communication – UniMAC-IJ. A member of Ghana Journalists Association (GJA).
