Ghana’s CCC+ rating ... Red flag for capital market borrowing
The Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has cautioned the government in its plans to resume borrowing from the bonds market, despite the potential benefits.
He warned that the current CCC+ rating posed significant risks, including high borrowing costs and renewed debt accumulation.
He emphasised the need for prudence, stating that Ghana's current credit rating makes it a high-risk borrower.
He noted that if the government is not careful, it could accumulate debt again, leading to further economic challenges.
Prof. Quartey was speaking at the maiden edition of the Daily Graphic/Ecobank Ghana Economic Forum in Accra on the theme: “A broad review of the economy of Ghana: Then, now, and the way forward”.
The forum was organised by the Graphic Communications Group Ltd (GCGL), in collaboration with Ecobank Ghana brought together industry experts, policymakers and academia to discuss and analyse effective controls that promote sustainable economic growth, innovative strategies to ensure sustainable fiscal management and examine ways to broaden the tax base.
He further said the use of State-Owned Enterprises (SOEs) as vehicles for capital market access could also expose the state to additional financial risks.
He warned that when SOEs defaulted on their obligations, the government’s sovereign guarantee automatically converted these debts into national liabilities.
“It is good to go, but let us be careful as we open up to the capital market,” he stated.
Financial sector reform
In a speech read on his behalf, the First Deputy Governor of the Bank of Ghana, Dr Zakaria Mumuni, said the banking sector was stronger and well-capitalised following the comprehensive regulatory and supervisory reforms in the past few years.
He disclosed that as of April 2025, the Capital Adequacy Ratio was at 15.8 per cent, significantly above the prudential minimum requirement of 10 per cent.
That achievement, he said, was notable as it was accomplished without any regulatory forbearance.
He said while liquidity positions across banks had improved substantially, profitability levels had also shown encouraging trends. However, he said asset quality remained a concern for the sector.
“The non-performing loans ratio remains elevated at 23.6 per cent, but when adjusted for fully provisioned losses, the ratio declines to 9.0 per cent, indicating that banks are actively managing legacy exposures,” Dr Mumuni said.
Assurance
He gave an assurance that the central bank would continue to maintain vigilant supervision, particularly over undercapitalised institutions, to ensure that every deposit-taking institution upheld sound risk management practices in financial intermediation and contributed to the real economy.
Also, the bank has instituted the requisite regulatory framework to push further the boundaries of financial innovation, supported by the unwavering commitment to digital finance and financial inclusion.
Initiatives such as regulatory sandboxes, mobile money integration, and cross-border payment infrastructure are supporting the process to unlock access to finance for SMEs, startups and underserved communities,” he stated.
Curbing corruption
For his part, a Tax Partner at PwC, Abeku Gyan-Quansah, said an effective way to check corruption in the country’s tax system was through the enforcement of professional standards and accountability by certified bodies.
He said while proving corruption through criminal prosecution could be difficult due to the high burden of proof, ethical lapses could still be addressed through professional disciplinary mechanisms, which had a lower threshold and quicker recourse.
“These institutes already have bodies responsible for discipline. So, if somebody believes that somebody has not done their work well, somebody was corrupt, and you cannot establish it using the criminal threshold, you can go and report them to the institutes,” he said.
He further stressed that laws passed nearly a decade ago already required that only trained and certified professionals handled tax matters — just as only licensed lawyers could represent clients in court.
Yet, despite the legal framework, he said the Ghana Revenue Authority (GRA) continued to engage individuals who could not demonstrate the required training or certification.
Mr Gyan-Quansah urged the government and GRA to lead by example in ensuring that anyone presenting themselves as a tax expert was asked to prove their qualifications.