Ghana pushes for better credit rating to reduce borrowing costs

The government is working to improve Ghana’s credit rating to make borrowing cheaper and help businesses access money to grow.

Finance Minister Dr Cassiel Ato Forson says the government plans to achieve this through its New Economy programme.

Speaking at a New Economy engagement in Accra, he said Ghana's financial market faced serious challenges in 2022 following the country's debt crisis.

He explained that the crisis affected the government's ability to borrow money locally, while banks also struggled to access funding.

Ghana ranks 18th among 25 African countries in revenue study

However, Dr Forson said the situation has improved, with Ghana now rated B by international credit rating agencies.

"Now we have restored it, and the country is now rated B. We want to get to investment grade,” he stated.

An investment-grade rating means a country is considered more likely to repay the money it borrows. This makes investors more willing to lend to that country.

If Ghana achieves this rating, the government could borrow money at lower interest rates and reduce the cost of paying back its debts.

Businesses could also benefit, as they may find it easier to raise money from investors to expand their operations, buy equipment and create jobs.

"If we are able to get to investment grade, we would have laid the foundation for corporate bonds and others to take off," Dr Forson said.

He explained that Ghana must keep its economy stable, manage its finances carefully and maintain policies that give investors confidence.

Government borrows GH¢4.11 billion through T-Bills

The Finance Minister believes achieving this target will help attract more investment, support businesses and strengthen Ghana's economy.

DR

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