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

Ghana is aiming to secure an investment-grade credit rating through its New Economy programme, according to Finance Minister Dr Cassiel Ato Forson. The minister believes this will help decrease borrowing costs and enhance access to long-term financing for local businesses. Speaking at a New Economy event in Accra, Dr Forson emphasized that the government is concentrating on bolstering the nation's economic fundamentals to regain investor trust and elevate Ghana's position in the global financial markets.

Dr Forson reminded the audience that Ghana's domestic bond market took a significant hit in 2022, following the country's debt default and the execution of the Domestic Debt Exchange Programme (DDEP). This setback hampered credit line availability for local banks and stalled the domestic bond market, causing it to grind to a near halt. Since then, the government has made strides in restoring investor confidence, with Ghana's credit rating currently at B. However, the ultimate goal is to reach investment-grade status.

An investment-grade rating would demonstrate a more positive assessment of Ghana's capacity to fulfill its debt obligations. Additionally, it could attract more institutional investors, including those who require securities to meet a minimum credit rating. Dr Forson explained that attaining this status could enable the government to obtain financing at more advantageous interest rates, as it would widen the pool of investors willing to invest in its bonds.

Furthermore, he highlighted the potential advantages for the private sector, noting that an enhanced sovereign credit rating could yield more favorable financing conditions for Ghanaian businesses. Specifically, a stronger credit profile could foster a more dynamic corporate bond market, providing companies with access to long-term capital beyond traditional bank loans. This would empower businesses to raise funds for expansion, purchase equipment, augment production capacity, and embark on new investments.

Dr Forson stressed that achieving this goal would necessitate persistent economic stability, predictable policies, and a continued dedication to reforms. For him, securing an investment-grade rating is not merely about enhancing Ghana's credit position; it is also about constructing a more robust financial environment in which both the government and private businesses can access affordable, long-term funding.