Moody's' rating testimony to prudent economic management — Finance Ministry

The Ministry of Finance says the affirmation of Ghana’s long-term issuer and senior unsecured bond ratings at B3 and the change in the outlook from stable to positive by Moody’s is a testimony of the prudent management of the economy and its attendant positive outcomes.

According to a press statement, this is consistent with the results of the IMF’s recent assessment of the Economy through the Article IV consultation after their successful Executive Board meeting on 6th December 2019 where the Executive Directors commended the Ghanaian authorities for the strong macroeconomic performance and laying the foundations for sustained and more inclusive growth.

Going forward, it said: “The Government is counting on all its stakeholders, especially the private sector and the Developments partners to support the key focus areas of Government for 2020 and beyond.”

“The medium-term outlook is, indeed, bright supported by strong activity in the extractive industry (oil, gold, and bauxite), a safer and resilient banking system, prudent macroeconomic policy stance, rapid infrastructure and oil sector investment as well as an emerging tourism industry (Year of Return)”, it added.

It emphasised that the establishment and operationalisation of the Ghana Incentive-Based Risk Sharing System for Agriculture Lending (GIRSAL)—to provide guarantees to facilitate commercial bank lending to the agriculture sector, as well as the National Development Bank will provide the necessary impetus to the medium-term growth prospects.

The effective implementation of its flagship programmes, including The Planting for Food and Jobs, One District One Factory, Free Senior School, and the IPEP the statement said it will continue to support sustained growth and job creation. With the rectification of the African Continental Free Trade Area (AfCFTA), Ghana plans to become a regional hub for aviation, logistics, financial services, tourism, health and education.

International rating agency, Moody’s over the weekend as affirmed the government of Ghana's long-term issuer and senior unsecured bond ratings at B3 and changed the outlook to positive from stable.

It also concurrently affirmed the rating of the bond enhanced by a partial guarantee from the International Development Association (IDA, Aaa stable) at B1.

Prior to this, Moody’s rating analyst team visited Ghana from 14th to 15th January 2020 for the annual country visit.

During their visit, the team undertook and independently evaluated the data on the performance of the economy in consultation with the Ministry of Finance, Bank of Ghana, IMF, World Bank, Development Partners and the private sector on major developments in the country.