Caution Amid Optimism: Economist Warns Ghana Not Ready for Eurobond Market Despite Fitch Upgrade

Fitch Ratings recently upgraded Ghana’s credit rating to ‘B-’ with a stable outlook, a move that signals improved investor confidence in the country’s financial health. While the upgrade is seen as a positive development, it has reignited conversations about Ghana’s potential return to the international capital market. Many government officials see this as a promising sign of recovery following a difficult economic period.

However, economist Professor Patrick Asuming has urged caution. In an interview with Citi Business News, he warned that despite the improved credit rating, Ghana should not rush to issue new Eurobonds. He emphasized that the country remains under an IMF program, which restricts external borrowing, and highlighted that past Eurobond issuances and external debt accumulation have significantly strained the economy.

Professor Asuming argued that Ghana is still in the early stages of recovery and has not yet implemented the critical long-term reforms needed to stabilize its economy. He pointed out that while 2025 has seen efforts to reorganize government finances, the country has not made sufficient progress in enacting sustainable tax reforms that would ensure consistent revenue, reduce the deficit, and improve debt servicing capacity.

Responding to the Fitch rating, Finance Minister Dr. Cassiel Ato Forson described it as a major milestone for the country. He said the upgrade reflects the government’s commitment to economic revival and its determination to bring about lasting prosperity for all Ghanaians. His remarks focused on the broader vision of rebuilding confidence in Ghana’s economic direction.

Similarly, Governor of the Bank of Ghana, Dr. Johnson Asiama, welcomed the upgrade, attributing it to improving macroeconomic indicators and better performance in the external sector. Speaking at a banking event, he noted that the rating underscores Ghana’s progress and growing economic resilience, although structural vulnerabilities remain to be addressed.

Source: Citi newsroom