Global credit rating agency S&P Global Ratings has upgraded Ghana’s foreign-currency credit rating from Selective Default to CCC+, marking a significant step forward for the country’s economic recovery. This change reflects growing investor confidence and highlights the strong progress made under the new government.
The upgrade, announced on May 9, 2025, comes as Ghana makes progress in addressing its debt problems and stabilizing its economy after years of financial difficulty. S&P noted that talks with the country’s remaining private lenders are nearly complete—a key development that has eased pressure on government finances.
The agency also praised the government’s commitment to reforms, which are starting to yield results. Inflation, while still high at 22%, is gradually decreasing thanks to a stronger cedi and lower energy prices.
Dr. Forson has led several important changes, including updates to financial laws, the reintroduction of spending rules, and steps to create an independent fiscal council. These efforts are designed to ensure better management of public funds.
Despite inheriting large unpaid debts, the government is focusing on cutting spending rather than raising taxes. This approach aligns with Ghana’s agreement with the International Monetary Fund (IMF) under the Extended Credit Facility (ECF) program.
The government aims to achieve a budget surplus of 1.5% of GDP in 2025 and plans to limit annual spending growth to under 10% for the next four years. This is a major shift from the past 20 years, during which spending grew by an average of 28% per year.
S&P expects Ghana’s public debt, after subtracting cash reserves, to fall from 71.4% of GDP in 2024 to 47.4% by 2028. Interest payments, which once consumed nearly half of all government revenue, have now dropped to around 25% due to the debt restructuring.
While risks remain—such as increased spending in the 2024 election year and global economic uncertainties—S&P states that Ghana’s stronger economic position, steady reforms, and growth prospects support the improved rating.