Moody’s Ratings has upgraded Ghana’s sovereign credit rating, reflecting stronger fiscal performance and improved debt management.
The agency raised the nation’s long-term foreign currency debt rating from Caa2 to Caa1, with the outlook revised from positive to stable.
According to Moody’s, “greater macroeconomic stability and favourable external dynamics are supporting more controlled funding costs and foreign exchange reserve replenishment.” The agency acknowledged past budget overruns but noted that “nascent improvements to the fiscal framework will help anchor fiscal adjustment.”
Since taking office in January, President John Mahama’s administration has implemented fiscal consolidation measures aimed at stabilizing the post-restructuring economy. These efforts have yielded tangible results, including a reduction in public debt from 764 billion cedis (64.9% of GDP) in the previous year to 629 billion cedis ($51.6 billion, 44.9% of GDP) as of July.
Boosted by rising gold prices, Ghana — Africa’s leading gold producer — also strengthened its gross international reserves by 43%, reaching $10.7 billion at the end of August. This growth has enhanced the country’s capacity to meet external payment obligations and sustain economic recovery.
Source:Africa Publicity
