Ghana's Economic Reform Gains Momentum as Fitch Upgrades Credit Rating

Six months into President John Dramani Mahama's administration, Ghana's commitment to economic reform has received a significant vote of confidence from global ratings agency Fitch, which recently upgraded the country's Long-Term Foreign-Currency Issuer Default Rating (IDR) from ‘Restricted Default’ to ‘B-’ with a Stable Outlook.

This upgrade shows a clear acknowledgement of the government's decisive fiscal and debt management measures, marking a turning point in Ghana's economic recovery journey.

The Fitch upgrade is primarily attributed to Ghana's successful restructuring of its substantial $13.1 billion Eurobond debt. This strategic move, coupled with ongoing fiscal consolidation efforts and an overall improving macroeconomic outlook, has positioned the nation on a path towards sustainable growth.

The agency specifically highlighted key indicators, including declining inflation, a strengthening cedi, and a resurgence in investor confidence, as concrete evidence of Ghana's economic turnaround.

One of the most significant achievements under President Mahama's leadership has been the dramatic reduction in inflation. After peaking at over 50% in early 2023, inflation has steadily declined, reaching a low of 18.4% as of May 2025 – a level not seen in over three years.

Fitch projects this downward trend to continue, forecasting inflation to reach 15% in 2025 and a more manageable 10% by 2026. This success is largely due to prudent monetary policies and government efforts to stabilise prices.

The Ghanaian cedi has also experienced a significant appreciation since April, positively impacting the economy by easing import costs and stabilising fuel prices. This increased currency strength contributes to a more stable economic environment and alleviates pressure on consumers.

Furthermore, the Mahama administration has made significant strides in narrowing the fiscal deficit. Through disciplined spending and revenue generation initiatives, debt levels are projected to decline to 60% of GDP in 2025, a substantial improvement from the 93% recorded in 2022.

This fiscal prudence has also contributed to a rise in gross international reserves, which now stand at $6.8 billion. The government's ambitious target of achieving a primary budget surplus by the end of the year further underscores its commitment to fiscal responsibility.

Looking ahead, the Fitch report forecasts a robust real GDP growth of 4% in 2025. This positive outlook is supported by a diversified economic performance, with anticipated recovery in the agricultural sector, expansion in industry, and strong contributions from the services sector. This diversified growth strategy is crucial for building a more resilient and sustainable economy.

The Fitch upgrade is not only a demonstration of the effectiveness of the current economic policies but also sends a strong signal to international investors, indicating improved creditworthiness and reduced risk. This renewed confidence can attract foreign investment, further fueling economic growth and job creation.

While the ‘B-’ rating still indicates speculative grade creditworthiness, the upgrade and Stable Outlook provide a solid foundation for further progress.

Ghana's economic reform journey is far from over, but this achievement marks a significant milestone, demonstrating the potential for sustainable growth and prosperity under President Mahama's leadership.

Continued commitment to prudent fiscal management, diversification of the economy, and attracting foreign investment will be critical to solidifying these gains and ensuring

the realisation of President John Mahama's "Reset Agenda".

Anthony Obeng Afrane