Ghana still high-risk after S&P upgrade – Analyst
By: Rebecca Okine
Economic analyst at Zed, Emmanuel Boateng, has warned that Ghana remains financially vulnerable despite a recent credit rating upgrade by S&P Global Ratings.
The agency raised Ghana’s foreign-currency sovereign credit rating from Selective Default (SD) to CCC+ on May 9, 2025, reflecting improved investor sentiment and ongoing economic reforms.
Speaking on Business Breakfast on Zed, Mr. Boateng acknowledged the progress but emphasized that the new rating still indicates significant risk. “We’ve been upgraded, but we’ve been upgraded at the risk level,” he said. “We are still within the risk zone.”
He explained that while the country has moved away from complete default—where access to international capital was virtually impossible—the CCC+ rating means Ghana will still borrow at high interest rates. “If you’re seen as a risky borrower, lenders will demand higher returns. That’s why countries like Ghana end up paying interest rates of 15 to 30 percent, compared to countries like Poland, which pay around 3 to 5 percent.”
Mr. Boateng stressed that credit ratings directly affect borrowing costs, which in turn impact government spending on critical sectors like healthcare, infrastructure, and education. “When credit ratings are poor, borrowing becomes expensive. But if ratings improve, the government can borrow at lower rates, saving money for essential services,” he added. He urged Ghanaians to pay attention to such developments, as they shape not only the country’s financial standing but also the government’s capacity to invest in national development.
