Ghana is poised to exit sovereign default by July 2025, according to Fitch Ratings, thanks to the country’s anticipated completion of external debt restructuring by the end of June 2025. This positive outlook is also fueled by Fitch’s optimism that Ghana will finalize non-bond debt treatment by the end of this year. Thomas Garreau, Associate Director of Europe, Middle East, and Africa Sovereign Ratings at Fitch, shared these insights during a recent webinar on debt restructuring in Ghana, Zambia, and Ethiopia.
Ghana has made significant progress in its debt restructuring efforts, having reached an agreement with the Official Creditor Committee (OCC) on official debt treatment parameters in January 2024. To date, approximately $14.2 billion in Eurobonds have been restructured. Garreau noted that the common framework restructuring is expected to be completed by the first half of next year, despite potential delays due to upcoming elections.
The successful restructuring of Ghana’s debt will bring much-needed relief to the country’s finances. Interest payments are projected to decrease by 8% of revenue in 2024, 5% in 2025, and 4% in 2026. This reduced burden will allow Ghana to allocate more resources to vital sectors, stimulating economic growth and development.
As Ghana navigates its debt restructuring process, Fitch’s positive forecast offers a welcome boost to investor confidence and economic stability. With the country’s commitment to fiscal discipline and structural reforms, Ghana is well on its way to regaining a solid financial footing.
Ruth Abla ADJORLOLO
