Ato Forson says New Economy will help Ghana attain an investment-grade rating

Ghana is seeking to secure an investment-grade credit rating through its New Economy programme, a move Finance Minister Dr Cassiel Ato Forson says will help reduce borrowing costs and improve access to long-term financing for local businesses.

Speaking at a New Economy engagement in Accra, Dr Forson said the government was focused on strengthening the country’s economic fundamentals to restore investor confidence and improve Ghana’s standing in international financial markets.

He recalled that Ghana’s domestic bond market suffered a major setback in 2022 following the country’s debt default and the implementation of the Domestic Debt Exchange Programme (DDEP).

According to the Finance Minister, the crisis disrupted access to credit lines for local banks and brought significant activity in the domestic bond market to a near standstill.

Dr Forson said the government had since made progress in restoring confidence, with Ghana’s credit rating now at B. He noted, however, that the ultimate objective was to attain investment-grade status.

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

An investment-grade rating would indicate a stronger assessment of Ghana’s ability to meet its debt obligations. It could also attract more institutional investors, including those whose investment mandates require securities to meet a minimum credit rating.

Dr Forson said achieving this status could enable the government to secure financing at more favourable interest rates by widening the pool of investors willing to purchase its bonds.

He also highlighted the potential benefits for the private sector, explaining that an improved sovereign credit rating could create more favourable financing conditions for Ghanaian businesses.

In particular, he said a stronger credit profile could help establish a more vibrant corporate bond market, giving companies access to long-term capital beyond conventional bank loans.

This would allow businesses to raise funds for expansion, acquire equipment, increase production capacity and undertake new investments.

“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 stressed, however, that achieving the target would require sustained economic stability, predictable policies and a continued commitment to reforms.

For the Finance Minister, securing an investment-grade rating is therefore not simply about improving Ghana’s credit standing, but also about creating a stronger financial environment in which the government and private businesses can access affordable, long-term funding.