Despite a recent upgrade in Ghana’s credit rating by Fitch, the government remains cautious about re-entering external financial markets. Instead, it is prioritizing domestic economic stability, according to Dr. Sharif Mahmud Khalid, Economic Policy Advisor to the Vice President.

Speaking on Joy News’ PM Express, Dr. Khalid underscored the administration’s commitment to fiscal discipline following Fitch’s decision to raise Ghana’s Long-Term Foreign-Currency Issuer Defaucclt Rating from ‘Restricted Default’ to ‘B-’ with a Stable Outlook.

“This rating is not a green light for us to rush back into borrowing,” he said. “We’re not becoming overconfident. Our focus is on stabilising the domestic economy first.”

While acknowledging that Fitch’s ratings primarily serve external investors, Dr. Khalid clarified that Ghana is not yet ready to return to international capital markets.

“This rating is for the external market, but we’re not actively pursuing that space at the moment,” he explained. “Our priority is to stabilise the local economy, which is why we’ve put internal financial controls in place.”

Dr. Khalid attributed the credit rating improvement to deliberate policy decisions taken since the current administration assumed office, particularly the Domestic Debt Exchange Programme.

“That programme gave us breathing space, which naturally influenced external assessments like Fitch’s,” he noted.

He also cited ongoing structural reforms and spending controls as evidence of the government’s fiscal responsibility.

“We’ve tightened our spending by cutting down on appointments and streamlining costs. That alone sends a strong signal to the market,” he said./

“The market responds the moment the budget is announced. Whether we’ve spent the money or not, investors react to the allocations and appropriations,” he stated.

He further emphasized the government’s efforts to rebuild trust with both local and international stakeholders, highlighting the reactivation of the Sinking Fund—an instrument designed to support debt servicing.

“Reactivating the Sinking Fund is a sign of our commitment to responsible debt management. This helps improve our credit profile, which Fitch has acknowledged,” Dr. Khalid said.

He explained that the B- rating signals a reduced risk of default and a step in the right direction for the economy.

“It’s a recognition that we’re improving in terms of our ability to meet debt obligations,” he added.

Looking at the broader economic picture, Dr. Khalid noted that Ghana’s macroeconomic indicators are trending upward, marking a shift from recent downturns.

“The downgrades are being reversed. We’re now seeing signs of recovery across multiple indicators,” he said.

However, Dr. Khalid stressed that the government is not letting the positive news breed complacency.

“We’re not here to celebrate. We’re here to rebuild—and we remain focused on stabilising the Ghanaian economy,” he concluded.