Moody’s revises Ghana’s outlook to positive as fiscal recovery gains momentum
LAGOS – Global ratings agency Moody’s shifted Ghana’s sovereign credit outlook from “stable” to “positive” on Friday, citing a significant turnaround in the country’s fiscal health and macroeconomic stability. The agency affirmed the long-term issuer rating at Caa1, but noted that a formal upgrade is now possible if current economic reforms continue to yield results. The decision follows Ghana’s successful return to the domestic bond market this month, a move that signals a restoration of investor confidence after the 2023 debt default. Moody’s highlighted the government’s ability to achieve a primary budget surplus of 1.5% of GDP, largely driven by strict adherence to the $3 billion IMF bailout program. Falling inflation and steady revenue from gold and oil exports have also stabilized the cedi, providing a much-needed buffer against external economic shocks. Despite the positive outlook, the agency warned that high debt levels and global commodity price volatility remain significant risks to the nation’s long-term recovery. The shift is expected to lower borrowing costs, making it easier for the government to fund essential infrastructure and social development projects moving forward.
