Global ratings agency Fitch Ratings has expressed growing confidence in Ghana’s fiscal management framework, saying significantly improved public financial management systems make short-term fiscal slippage increasingly unlikely as the country continues its economic recovery.
The assessment forms part of Fitch’s latest sovereign rating review, which pointed to stronger fiscal discipline, tighter expenditure controls and improving institutional reforms as key factors underpinning Ghana’s ongoing recovery.
“Ghana has significantly improved its public finance management, which in our view reduces the risk of short-term fiscal slippage,” the agency stated.
Fitch highlighted the establishment of the Value for Money Office and the strengthening of the Fiscal Council as notable governance reforms contributing to improved transparency, accountability and spending efficiency. Analysts say the measures are gradually restoring investor confidence by reducing the risk of election-year overspending and unplanned fiscal overruns that previously destabilised the economy.
The agency acknowledged that debt servicing costs remain elevated, consuming around 20 percent of government revenue, but said rising reserves and renewed access to both international and domestic bond markets give Ghana sufficient financial flexibility to meet its obligations without major short-term disruptions.
“Rising reserves and improving access to the bond market provide Ghana with sufficient flexibility to meet its financial obligations,” Fitch said.
The review comes as Ghana advances its recovery programme following the 2022 economic crisis, which triggered high inflation, sovereign debt restructuring, sharp currency depreciation and a loss of investor confidence. Since entering the International Monetary Fund (IMF) programme, authorities have implemented fiscal and structural reforms aimed at restoring macroeconomic stability and rebuilding reserves.
Fitch’s latest assessment is widely viewed as a vote of confidence in Ghana’s fiscal consolidation programme and signals that the country’s recovery is beginning to gain measurable traction.
