Ghana is expected to encounter significant liquidity pressures in 2025 and 2026 despite restructuring a substantial portion of its debt, Fitch Ratings has warned.

The credit rating agency highlighted that Ghana’s interest rate-to-revenue ratio would remain among the highest globally, with estimates reaching 29% in 2025 and 30% in 2026. These levels are almost double the average of 16% for emerging markets.

Thomas Garreau, Associate Director for Europe, the Middle East, and Africa Sovereign Ratings at Fitch, called for urgent and drastic fiscal reforms to address the issue.

“Ghana will still face significant liquidity pressures,” he said. “The interest rate revenue ratio will remain one of the highest globally, representing substantial fiscal strain. While Ghana has undertaken significant fiscal consolidation with a 4.6 percentage point adjustment from 2022 to 2024, more needs to be done.”

Fitch also confirmed plans to remove Ghana from sovereign default status by July 2025, contingent on the completion of external debt restructuring by June 2025.

The warning underscores ongoing challenges for Ghana’s economy despite measures to improve fiscal sustainability.

Source:TheDotNews