Ghana’s economic trajectory received a notable boost as the global ratings agency S&P Global (Standard & Poor’s) upgraded the country’s credit rating to CCC+ from its previous “Selective Default” (SD) status.
The move follows significant progress in Ghana’s debt restructuring negotiations with commercial creditors.
In a statement released over the weekend, S&P said that both the foreign and local currency outlooks are now stable, signalling a renewed vote of confidence in Ghana’s economic direction.
The rating upgrade also aligns with the country’s improving trade metrics.
Ghana recorded the highest trade surplus in West Africa for 2024, amounting to approximately $4.1 billion, followed by Côte d’Ivoire’s $2 billion. This was disclosed by Bridgewater Advisors, who noted that while the region posted a modest overall trade balance of $1.6 billion (0.2% of GDP), disparities persist.
Nigeria and Togo were flagged for the largest trade deficits ($1.8 billion for Nigeria and $1.1 billion for Togo), largely caused by fluctuating commodity prices and currency volatility.
Treat gold with caution
However, while commending Ghana’s rising gold exports and the formalisation of artisanal mining through the Ghana Gold Board (GoldBod), S&P also issued a caution.
The agency warned that the government’s gold purchasing initiative – though lucrative – could have unintended consequences for cocoa farming by diverting labour and resources away from agriculture.
The broader financial environment appears mixed. Inflation remains at 21.2%, while the Ghana Reference Rate sits at 23.99% and the policy rate at 28%. Meanwhile, petroleum prices are easing, with petrol and diesel dropping by 10.23% and 4.43%, respectively.
The cedi has also shown signs of stabilisation, trading at GHC13.1066 per dollar, with positive implications for importers and business confidence.
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