Fitch Ratings has warned that Ghana will face significant liquidity pressures in 2025 and 2026, even after restructuring most of its debt.
The UK-based credit rating agency pointed out that Ghana’s interest-to-revenue ratio will remain one of the highest in its sovereign portfolio, with projections showing the ratio reaching 29% in 2025 and 30% in 2026. This is nearly double the emerging markets’ average of 16%.
Thomas Garreau, Associate Director for Europe, Middle East, and Africa Sovereign Ratings at Fitch, emphasized the need for aggressive fiscal reforms to address the country’s ongoing economic challenges.
“We still anticipate significant liquidity pressures for Ghana,” Garreau stated. “The country’s interest-to-revenue ratio remains exceptionally high at approximately 30%, which is nearly double the emerging market average. This underscores the need for drastic measures to stabilize the fiscal economy.”
Despite these challenges, Garreau acknowledged Ghana’s efforts at fiscal consolidation, citing a 4.6 percentage point primary fiscal adjustment achieved between 2022 and 2024.
Fitch previously indicated plans to lift Ghana out of sovereign default by July 2025. However, the ongoing liquidity pressures and high interest burdens could complicate the country’s path to financial stability.
