Economic Policy Advisor to the Vice President, Sharif Mahmud Khalid, says Ghana’s recent credit rating upgrade by Fitch is a signal to external creditors that the country has improved its risk profile, rather than a reflection of domestic economic reforms.

Dr. Khalid clarified that the B- rating simply reflects reduced risk of debt default following Ghana’s debt restructuring efforts and renewed fiscal commitments.

“In the language of rating agencies, the current B- rating from Fitch simply means you’ve improved in terms of your risk of defaulting on a debt payment,” he explained in an interview on Joy FM.

He noted that Ghana’s reactivation of the sinking fund, aimed at debt servicing, was a strategic move to reassure external markets of the country’s commitment to honouring its obligations.

“If you’ve activated a sinking fund, which is an insurance measure to servicing most of these, and then you’ve committed to both external and domestic debt programs, invariably, it’s going to improve.”

However, Dr. Khalid emphasised that the improved rating is not based on internal fiscal discipline or structural reform, but rather future commitments and outcomes of external debt negotiations.

“This is not for the internal market,” Dr. Khalid said. “This is for the external market, which we are not ready as of yet to even start pushing through, because we believe in stabilising the domestic market.”

Ghana’s upgrade from ‘Restricted Default’ to B- by Fitch comes after progress in debt restructuring and macroeconomic signalling, which appear to have restored a measure of external investor confidence. However, experts and policymakers alike agree that ensuring long-term stability will require broader reforms and sustained domestic economic recovery.