Ghana's Credit Rating Upgraded by Moody's as Economy Rebounds

Strategic Insights -

Ghana's economy is showing signs of recovery, with a more stable cedi, single-digit inflation, and increased investor confidence. The country's long-term foreign currency credit rating has been upgraded by Moody's from Caa2 to Caa1, with a stable outlook. This upgrade reflects Ghana's improved prospects for debt reduction and macroeconomic stabilization under the IMF-supported reform programme. The country's fiscal position is improving, with primary surpluses and tight expenditure controls.

Key Takeaways:

  • Ghana's long-term foreign currency credit rating was upgraded by Moody's from Caa2 to Caa1, with a stable outlook.
  • The upgrade was due to improved prospects for debt reduction and macroeconomic stabilization under the country's ongoing IMF-supported reform programme.
  • Ghana's fiscal position is improving, with primary surpluses and tight expenditure controls.
  • The country's economy has demonstrated signs of strong recovery in 2025, with single-digit inflation, a more stable cedi, and increased investor confidence.
  • Ghana's debt metrics are progressing more straightforwardly towards sustainability, backed by careful budget management and the ongoing IMF Extended Credit Facility (ECF) programme.
  • The stable outlook indicates that, although challenges persist, particularly from fluctuations in global commodity prices and external financing pressures, the risk of further deterioration has diminished.
  • Ghana's public debt has fallen to ₵629 billion ($51.6 billion) by July 2025, down from ₵764 billion (64.9%) a year earlier.
  • The IMF has lauded Ghana's progress in stabilising inflation, rebuilding reserves, and maintaining fiscal discipline, key indicators that the country's macroeconomic recovery is firmly taking hold.

Statistics:

  • Ghana's long-term foreign currency credit rating has been upgraded by Moody's from Caa2 to Caa1.
  • Ghana's public debt has fallen from ₵764 billion (64.9% of GDP) in July 2024 to ₵629 billion (44.9% of GDP) in July 2025.
  • Ghana's international reserves have surged 43% to $10.7 billion by August 2025.
  • Inflation has dropped to 9.4% in September 2025, the country's first single-digit rate in four years.
  • The IMF's Extended Credit Facility programme has provided Ghana with $3 billion, paving the way for an additional $385 million disbursement once approved by the IMF Executive Board.

Sources:

  • "Moody’s upgrades Ghana’s foreign currency issuer rating to Caa1 with stable outlook," published by The Herald on October 10, 2025.
  • Copyright 2022 The Herald Provided by SyndiGate Media Inc. ().
  • IMF's press release on Ghana's Fifth Review Mission under the $3 billion Extended Credit Facility (ECF).