New Economy to push Ghana towards investment grade – Dr. Ato Forson

Finance Minister Dr. Cassiel Ato Forson revealed at a New Economy event in Accra that Ghana aims to utilize its New Economy program to secure an investment-grade credit rating. This objective would ultimately reduce the country's borrowing expenses and facilitate Ghanaian businesses in acquiring long-term financing. During the same event, Forson pointed out that Ghana's domestic bond market had largely ceased functioning in 2022.

He also mentioned that local banks lost access to credit lines following the country's debt default and the Domestic Debt Exchange Programme. However, he reassured the audience that the situation has since been rectified, and the country now holds a B rating. Forson expressed the ambition to push for an investment-grade rating, which would signify that a credit rating agency views the prospect of default as lower.

Achieving such a rating could potentially open up Ghana's government bonds to more institutional investors, including funds that can only purchase bonds with a minimum credit rating. This expansion of investor pool might lead to Ghana obtaining lower interest rates on loans. The advantageous effects could also extend to Ghanaian businesses, as a stronger sovereign rating could improve financing conditions for companies and contribute to deepening the domestic corporate bond market.

This development would grant businesses greater capacity to secure long-term funds from investors to invest in equipment, expand production, and finance new projects. Forson concluded that attaining an investment-grade rating would necessitate maintaining a stable and predictable economy while showcasing the existence of policies capable of sustaining these gains.