Ghana, Zambia will emerge from foreign-currency debt default in 2024 – Fitch predicts
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Fitch predicts that Ghana and Zambia will successfully recover from default on their foreign-currency debt in 2024.
The Regional Sub-Saharan African Sovereigns Outlook 2024 released by the rating agency explained that Ghana and Zambia will come good in terms of restructuring their debts.
“We forecast gradual fiscal consolidation due to financing constraints and fiscal reform efforts, which, in many cases, are linked to IMF [International Monetary Fund] programmes. This consolidation will help government debt/GDP to broadly stabilise”.
“We expect Ghana and Zambia to emerge from default on their foreign-currency debt in 2024, although, in both cases, the debt restructuring process under the Common Framework is vulnerable to further delays”, the report said.
Fitch predicts stable median real GDP growth and lower average inflation in sub-Saharan Africa, including Ghana, in 2024, despite high inflation across various sovereigns.
“The macro outlook for sub-Saharan Africa (SSA) in 2024 points to stable median real GDP growth and lower average inflation, which nonetheless remains high across a number of sovereigns”.
It further predicted that financing challenges in Sub-Saharan Africa will persist due to the lack of affordable access to international capital markets without credit enhancements.
According to Fitch, multilateral funding will remain a key support more broadly across the region. However, risks remain tilted to the downside.
