S&P upgrade marks turning point for Ghana – Analyst
By: Rebecca Okine
Economic analyst at Zed, Emmanuel Boateng, has described Ghana’s recent credit rating upgrade by S&P Global Ratings as a pivotal development that could help restore investor confidence and enhance access to international capital markets.
His comments follow S&P’s decision to raise Ghana’s foreign-currency sovereign credit rating from Selective Default (SD) to CCC+. The rating agency cited improvements in the country’s economic outlook and the ongoing restructuring of its external debt.
Speaking on the Business Breakfast on Zed, Mr. Boateng said the upgrade sends a strong signal to investors and could pave the way for increased foreign direct investment.
“An improved rating can enhance investor confidence. And we have seen that in the Ghanaian market—I mean the Ghanaian financial market or the Ghanaian economy,” he stated.
He added that investor sentiment is often shaped by a country’s credit standing, which can significantly influence investment flows.
“The theory explains how investor confidence—or the sentiment investors have about a particular country’s financial market—can drive investments in that market,” he said.
According to Mr. Boateng, Ghana’s previous Selective Default status effectively locked the country out of international capital markets. With the move to CCC+, he believes those doors could begin to open again—albeit cautiously.
However, he warned that the new rating should not be seen as a clean bill of economic health. The CCC+ grade remains within speculative territory, and with it comes higher borrowing costs.
“The borrowing costs will still be high due to this speculative-grade rating,” Mr. Boateng cautioned.
He stressed the importance of using the current economic momentum to strengthen Ghana’s fiscal and institutional foundations.
“We can see that the economy is doing well, but as we are doing that, that should be a positive leverage to strengthen our fundamentals,” Mr. Boateng said.
He concluded with a call to action for the government to improve governance, seal financial leakages, and build resilient institutions. “It is an urgent call for us to start addressing weaknesses within our system and strengthening our institutions. That’s what will spur us on to the prosperity that we all look forward to as a country.”
