Ghana’s Credit Rating Upgrade Sparks Political Debate

Ghana’s recent economic rating upgrade from ‘Restricted Default’ to ‘B-‘ by Fitch Ratings has ignited a political dispute, with Defense Minister Dr. Omane Boamah using the development to criticize the previous New Patriotic Party (NPP) administration.

In a pointed Facebook post, Boamah declared “Ghana’s economy moves from JUNK,” framing the improved rating as validation of the current National Democratic Congress (NDC) government’s economic management.

The upgrade, announced this week, reflects Ghana’s progress in restructuring approximately $13.1 billion of Eurobonds and normalizing relations with commercial creditors. Fitch noted the country has addressed most of its external commercial debt, with only $700 million remaining to be restructured. The ratings agency projects Ghana’s public debt will decline to 60% of GDP in 2025-2026 from a peak of 93% in 2022.

Economic analysts caution that while the upgrade signals stabilization, significant challenges remain. “This reflects technical progress in debt restructuring rather than fundamental economic transformation,” noted Accra-based financial analyst Kwame Asante. Fitch’s report highlights persistent vulnerabilities, including an interest/revenue ratio of 26% – nearly double the ‘B’ category median – and the need to fully reopen Ghana’s domestic bond market.

The political sparring comes as Ghana implements a $3 billion IMF program, with the new administration targeting a 1.5% primary surplus for 2025. The economy showed unexpected resilience with 5.7% GDP growth in 2024, driven by rebounding cocoa production and services sector expansion. However, inflation remains elevated at 15% despite recent cedi appreciation.

Opposition figures have dismissed Boamah’s comments as premature, arguing the upgrade primarily reflects restructuring processes initiated under the previous government. The debate underscores how economic indicators remain fiercely contested terrain in Ghana’s polarized political landscape as the country works to sustain its recovery.