By: Kekeli K. Blamey
According to Fitch Ratings, Ghana is expected to face significant liquidity pressures in 2025 and 2026, despite the country’s efforts to restructure most of its debt.
The interest rate revenue ratio, which is estimated to be 29% in 2025 and 30% in 2026, will remain among the highest of Fitch’s rated sovereigns.
Thomas Garreau, Associate Director of Europe, Middle East, and Africa Sovereign Ratings at Fitch, emphasized that the situation requires drastic measures to improve the fiscal economy.
“Ghana will still face significant liquidity pressures due to the elevated interest rate revenue ratio, which is almost twice the emerging markets rate of 16%,” he said.
Despite the challenges, Fitch expects Ghana to complete its external debt restructuring by the end of June 2025, which would lead to the country being moved out of sovereign default from July 2025.
The Bank of Ghana has implemented measures to counter inflationary pressures and stabilize the economy.
Additionally, the government has implemented a large fiscal consolidation with a 4.6 percentage points primary fiscal adjustment between 2022 and 2024.
Ghana’s debt restructuring and fiscal consolidation efforts are crucial steps towards improving the country’s economic stability.
However, the liquidity pressures predicted by Fitch Ratings highlight the need for continued fiscal discipline and innovative solutions to address the country’s economic challenges.
