International ratings agency Moody’s has upgraded Ghana’s long-term foreign currency credit rating to Caa1 from Caa2.
The upgrade was on the back of improved prospects for debt reduction and macroeconomic stabilisation under the country’s ongoing IMF-supported reform program.
The outlook has also been revised to stable from positive, reflecting growing confidence in Ghana’s fiscal trajectory.
The announcement, made on Friday, October 10, 2025, is a significant step in Ghana’s credit recovery efforts following years of fiscal strain, high inflation and currency volatility.
Moody’s noted that Ghana’s improved rating reflects continued fiscal consolidation, successful debt restructuring progress and enhanced foreign reserve buffers, which have together strengthened the country’s ability to meet external obligations.
“Greater macroeconomic stability and favourable external dynamics are supporting more controlled funding costs and foreign exchange reserve replenishment,” Moody’s noted.
The agency said Ghana’s debt metrics are on a clearer path toward sustainability, supported by prudent budget management and the ongoing IMF Extended Credit Facility (ECF) program.
The stable outlook suggests that, while challenges remain especially from global commodity price fluctuations and external financing pressures, the risk of further deterioration has eased.
Ghana’s economy has shown signs of strong recovery in 2025, with single-digit inflation, a firmer cedi and improved investor confidence.
The fiscal position also continues to improve as the government maintains primary surpluses and tightens expenditure controls in line with the Fiscal Responsibility Framework.
Moody’s upgrade could further lower Ghana’s borrowing costs, enhance market sentiment and strengthen access to international capital markets – developments which are key to sustaining economic growth and completing debt restructuring efforts with private creditors.
Public debt has fallen to ₵629 billion ($51.6 billion), or 44.9% of GDP, by July 2025, down from ₵764 billion (64.9%) a year earlier.
Boosted by strong gold prices, Ghana’s international reserves surged 43% to $10.7 billion by August, while inflation dropped to 9.4% in September, the country’s first single-digit rate in four years.
This development coincides with the IMF’s staff-level agreement with Ghana under the $3 billion Extended Credit Facility, paving the way for a $385 million disbursement once approved by the IMF Executive Board.
The Fund has lauded Ghana’s progress in stabilising inflation, rebuilding reserves, and maintaining fiscal discipline, key indicators that the country’s macroeconomic recovery is firmly taking hold.