By Adnan Adams Mohammed
S&P Global Ratings has announced a wave of sovereign credit upgrades across Africa, with seven nations, including Ghana, seeing their ratings rise in 2025.
Ghana saw its rating raised by one notch from ‘CCC+’ to ‘B-’ with a stable outlook. This follows a previous upgrade in May 2025, which moved the country out of the “Selective Default” (SD) category after the October 2024 Eurobond exchange.
S&P attributed Ghana’s latest upgrade to several key factors.
One is export strength measured by rising volumes and favorable global prices for gold and cocoa have significantly bolstered foreign-currency reserves.
Another is improved fiscal discipline as tightened budgetary oversight and falling inflation have reduced liquidity pressures on the central government.
The third is debt restructuring as critical progress made under the G20 Common Framework, alongside Zambia, has improved the country’s long-term creditworthiness.
Generally, the agency cited a “divergence and resilience” narrative, where improving growth prospects and disciplined reform momentum have begun to decouple several African economies from the broader global volatility.
The rating actions have sparked a positive ripple effect, leading to subsequent upgrades for financial and corporate entities in regional powerhouses such as Egypt, Morocco, and South Africa.
The 2026 Outlook: Positive Momentum
The agency revealed that 2026 has opened with five African sovereigns carrying a positive outlook, signaling that the upgrade cycle may not be over. Morocco, Egypt, South Africa, and Togo have already seen rating improvements, while Nigeria and Uganda remain on positive watch.
“Our corporate rating actions 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 New York-based firm noted.
Country 2025/2026 Rating Action Driver
Ghana Upgrade to B- Gold/Cocoa prices & Debt Restructuring
Morocco Upgrade to BBB- Structural reforms & Investment Grade restoration
South Africa Upgrade to BB Fiscal surpluses & Eskom performance
Egypt Upgrade to B FDI inflows & Fiscal consolidation
Senegal Downgrade to CCC+ Elevated debt stock & fiscal pressures
The “Commodity Divergence”
While the report was largely optimistic, it highlighted a stark contrast in commodity-dependent nations. While gold and cocoa producers benefited, nations reliant on other resources faced headwinds.
Botswana: Received a negative rating action due to depressed global diamond prices.
Senegal: Faced downward pressure due to elevated debt levels and high fiscal deficits.
Benin: Had its positive outlook revised to stable following signs of political instability, though it successfully issued a US$350 million Eurobond in early 2026.
Corporate and Banking Impact
The sovereign upgrades are already translating into cheaper credit for the private sector. S&P revised its outlook for the Nigerian banking sector to positive, mirroring the sovereign trend. In South Africa and Morocco, corporate entities are benefiting from lower risk premiums, which S&P expects will lead to higher loan volumes and improved asset quality throughout 2026.
“We expect broad stability and continued positive momentum,” stated Ravi Bhatia, Director at S&P Global Ratings, though he cautioned that rising external debt repayments projected to exceed US$90 billion for the continent this year remain a key vulnerability.
