As Ghana prepares to re-enter the international capital market, leading economists are urging the government to proceed with caution, warning that current conditions still carry high risks and potential cost burdens.
Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has cautioned against an immediate return to borrowing, particularly from foreign markets, citing Ghana’s still-fragile credit standing and elevated interest rates for high-risk economies.
“We are not on the B-level yet. We are still viewed as a risky country,” Prof. Quartey explained during an economic dialogue in Accra hosted by the Graphic Communications Group and Ecobank. “Borrowing now could mean punitive interest rates. We need to stabilise further and build investor confidence before returning to the markets.”
Ghana has been shut out of the capital market since 2022 following a sovereign debt crisis and successive credit downgrades. While a recent rating upgrade from ‘Selective Default’ to ‘CCC+’ by S&P Global Ratings signals modest recovery, economists say it’s not yet time to celebrate.
Former Finance Minister and current Presidential Advisor on the Economy, Mr. Seth Terkper, acknowledged these concerns but added that the government’s approach to borrowing would be strategic and focused on financing productive projects.
“When we return to the market, it must be for long-term borrowing tied to specific developmental goals,” Terkper said. “We’re also using the Sinking and Stabilisation Funds to manage and retire debt. The aim is sustainable borrowing, not reckless accumulation.”
Meanwhile, the Bank of Ghana has expressed cautious optimism, with Director Osei Gyasi pointing to signs of renewed investor interest and improved macroeconomic indicators. However, he warned that vulnerabilities such as fiscal slippages and currency volatility must be tackled decisively to maintain the current momentum.
As the Mahama-led administration touts its “Big Push” infrastructure agenda, analysts agree that prudent fiscal management and a phased return to global capital markets could position Ghana for long-term recovery—if handled wisely.
As Ghana prepares to re-enter the international capital market, leading economists are urging the government to proceed with caution, warning that current conditions still carry high risks and potential cost burdens.
Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has cautioned against an immediate return to borrowing, particularly from foreign markets, citing Ghana’s still-fragile credit standing and elevated interest rates for high-risk economies.
“We are not on the B-level yet. We are still viewed as a risky country,” Prof. Quartey explained during an economic dialogue in Accra hosted by the Graphic Communications Group and Ecobank. “Borrowing now could mean punitive interest rates. We need to stabilise further and build investor confidence before returning to the markets.”
Ghana has been shut out of the capital market since 2022 following a sovereign debt crisis and successive credit downgrades. While a recent rating upgrade from ‘Selective Default’ to ‘CCC+’ by S&P Global Ratings signals modest recovery, economists say it’s not yet time to celebrate.
Former Finance Minister and current Presidential Advisor on the Economy, Mr. Seth Terkper, acknowledged these concerns but added that the government’s approach to borrowing would be strategic and focused on financing productive projects.
“When we return to the market, it must be for long-term borrowing tied to specific developmental goals,” Terkper said. “We’re also using the Sinking and Stabilisation Funds to manage and retire debt. The aim is sustainable borrowing, not reckless accumulation.”
Meanwhile, the Bank of Ghana has expressed cautious optimism, with Director Osei Gyasi pointing to signs of renewed investor interest and improved macroeconomic indicators. However, he warned that vulnerabilities such as fiscal slippages and currency volatility must be tackled decisively to maintain the current momentum.
As the Mahama-led administration touts its “Big Push” infrastructure agenda, analysts agree that prudent fiscal management and a phased return to global capital markets could position Ghana for long-term recovery—if handled wisely.
