UNDP, partners build capacity to engage credit rating agencies

By Konrad Kodjo DJAISI

The country faces a financing gap of between US$60 billion and US$70 billion to meet the Sustainable Development Goals (SDGs) by 2030. Closing this gap requires stronger mobilisation of domestic and international resources, but high borrowing costs remain a major hurdle.

At times, the country has had to borrow at unsustainable rates of 15 to 25 percent, undermining investment in human development, climate resilience and inclusive growth.

Speaking at a national workshop on sovereign credit ratings and development in Tema on September 11, Edward Ampratwum, Programme Specialist and Governance and Inclusive Growth Lead at the UNDP, said Ghana’s credit ratings are central to attracting affordable financing.

The two-day training, supported by the government of Japan, UNECA and APRM, aims to build the skills of government officials to better engage with international rating agencies and present Ghana’s economic story more effectively.

According to Mr. Ampratwum, a strong credit rating is essential for Ghana to regain access to capital markets at lower costs and to finance its development priorities. The initiative also aligns with UNDP’s Integrated National Financing Frameworks, which help countries plan and implement financing strategies.

“A robust framework, combined with improved ratings, sends a clear signal that Ghana is a credible investment destination,” he noted.

The workshop will also review how the country can consolidate recent gains and integrate credit rating efforts into development and investment matchmaking.

Ghana narrowly avoided a debt default in December 2022; but has since restructured its debt with IMF support, creating fiscal space for recovery.

Jacob Assa, senior economist and strategic advisor at UNDP’s Regional Bureau for Africa, told the B&FT that while credit rating methodologies differ among agencies such as Moody’s, S&P and Fitch, understanding the underlying data is critical.

He added that the country has made significant progress but still needs to strengthen capacity. To this end, UNDP engaged former staff of leading agencies to train and advise Ghanaian experts on data presentation, economic storytelling and inter-ministerial coordination.

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