S&P Global Ratings Cites Growth and Reforms as Drivers of Ghana, Six Other African Sovereign Upgrades in 2025
Seven sovereign rating upgrades across Africa in 2025, including Ghana, were largely driven by improving economic growth prospects and sustained reform momentum, according to S&P Global Ratings.
The global rating agency noted that the sovereign upgrades triggered a ripple effect, resulting in positive rating actions on financial institutions and corporates in several countries, notably Egypt, Morocco and South Africa.
S&P raised Ghana’s long-term sovereign credit rating by one notch from ‘CCC+’ to ‘B-’, assigning a stable outlook. The agency attributed the upgrade to rising export volumes and favourable prices for key commodities—particularly gold and cocoa—which supported the cedi and strengthened gross foreign-currency reserves. These developments, it said, contributed to improved fiscal performance and a stronger balance of payments position.
The rating action followed an earlier upgrade in May 2025, when S&P raised Ghana’s rating from ‘SD’ by one notch. That decision reflected progress made by the authorities in restructuring the remaining commercial debt following the October 2024 Eurobond exchange, alongside declining inflation, which better aligned with Ghana’s improving credit profile.
“Additionally, fiscal improvements and diminishing liquidity pressures helped enhance credit profiles, and Ghana and Zambia made critical progress with debt restructuring under the G20 framework,” S&P Global Ratings stated.
Five Sovereigns on Positive Outlooks
S&P further disclosed that 2026 began with five African sovereigns on positive outlooks. Four—Morocco, Egypt, South Africa and Togo—were subsequently upgraded, with Benin being the only exception.
According to the New York-based rating agency, the sovereign upgrades directly and indirectly supported positive rating actions across the financial and corporate sectors it covers in Egypt, Morocco and South Africa.
“Similarly, our positive outlook on Nigeria led us to revise our outlooks on Nigerian banks in 2025. Our corporate rating actions also reflected the positive commodity cycle and structural reforms that underpinned stronger economic prospects in Morocco and Nigeria, as well as stronger fiscal outcomes in South Africa,” the agency noted.
S&P added that it ended the year with South Africa, Cape Verde, Nigeria and Uganda on positive outlooks. In contrast, negative rating actions were taken on Botswana and Senegal, citing weak diamond prices and elevated debt levels, respectively.
The agency also pointed to political instability in Benin and Madagascar, which prompted it to revise Benin’s outlook from positive to stable.
