Ghana is targeting an investment-grade sovereign credit rating as it seeks to revive the domestic corporate bond market and provide local businesses with access to cheaper, long-term finance.
Finance Minister Dr Cassiel Ato Forson said the next stage of the country’s recovery would involve strengthening private-sector capital markets alongside improvements in Ghana’s sovereign creditworthiness.
Speaking at a New Economy engagement in Accra, Dr Forson said reaching investment-grade status would allow Ghanaian companies to issue longer-term debt instruments and reduce their dependence on expensive short-term bank lending.
“When we get to investment grade, you would have laid the foundation for corporate bonds and others to take off,” he said.
Ghana’s domestic bond market was severely disrupted by the country’s 2022 debt default and the subsequent Domestic Debt Exchange Programme (DDEP). The disruption also left local banks without access to international credit lines.
Recent improvements in Ghana’s sovereign credit profile have taken the country back to a B rating and restored some access to external funding. However, Dr Forson said a further improvement to investment grade would be necessary to unlock long-term corporate financing.
He identified three conditions for achieving that goal: sustained macroeconomic stability, a predictable policy environment supported by credible legislative and fiscal reforms, and a lasting restoration of investor confidence in Ghana’s public finances.
An investment-grade rating indicates a lower perceived risk of sovereign default. It would also make Ghanaian debt eligible for investment by global institutions, including pension funds and insurance companies whose mandates prevent them from holding securities below certain credit-rating thresholds.
Greater participation by those institutional investors would expand the amount of capital available in Ghana and help reduce borrowing costs for both the government and private-sector companies. It would also create stronger pricing benchmarks for domestic businesses seeking to issue corporate bonds.
The development of local capital markets has become more important after the government ruled out issuing new Eurobonds until 2030. A deeper domestic market would help Ghanaian companies fund equipment purchases, business expansion and long-term industrial projects without relying primarily on high-interest, short-term bank loans.
Dr Forson said the New Economy framework was intended to secure the economic foundations needed to achieve those aims before the 2027 Budget.
The framework is also designed to improve Ghana’s position in international financial markets while supporting private-sector expansion and job creation.
