S&P warns Ghana credit rating faces pressure over fiscal reforms

S&P Global Ratings said Ghana's credit rating could see new pressure in the next 12 to 18 months. This will happen if the country’s efforts to fix its finances slow down. It could also happen if world economic conditions get worse.

S&P said if Ghana's budget deficits get wider or debt costs rise, it would be harder to refinance old debt. This would make investors less confident and strain public money.

Risks also come from outside Ghana. Falling export volumes or bad changes in global prices for raw materials could hurt Ghana. Delays in Ghana’s debt restructuring, especially under the G20 Common Framework, also pose risks if lenders do not agree.

However, S&P said Ghana can still improve if the government keeps its money rules tight. Better tax collection, lower debt costs, and more foreign reserves could improve Ghana’s rating outlook.

S&P kept Ghana's long and short-term credit ratings at ‘B-/B’ with a stable outlook. This shows a balance between better economic numbers and ongoing weaknesses. Ghana’s recent gains include more money from exports, rising reserves, and good progress in debt restructuring after the 2022 default. These are key factors keeping things steady, even with risks remaining.