On Friday, the global rating agency S&P raised the Ghana's sovereign note in foreign and local currencies, increasing it from “CCC+/C” to “B-/B”, due to the strengthening of the balance payments and the country's budgetary positions.

The stable outlook balances the potential of a better balance-of-payments performance and improvements in Ghana's fiscal performance thanks to ongoing spending reforms, in the face of debt service costs remain high, with the risks associated with debt implementation works for reforms and Ghana's sensitivity to terms of trade, such that the prices of gold and cocoa, which were exceptionally favorable to over the past year.

This improvement reflects the gradual strengthening of Ghana's balance of payments and public finances, supported by a sustained economic growth and favourable terms of trade, in particular with regard to gold and cocoa prices — main products exports from Ghana — which together represent more than 60% of merchandise exports.

Although it is not the base scenario, S&P points out that the Rating could be put to the test if debt restructuring The remainder is stuck, potentially due to disagreements between different groups of creditors from Ghana on the comparability of principles and treatment conditions that they receive as part of the process of restructuring of the G20 Common Framework.

Moreover, fiscal reforms are not the case only at their beginnings and have therefore not yet been put to the test by the cycles electoral events, which creates the risk of fiscal slippage