Fitch Solutions is warning that foreign Investors remain cautious about uncertainty around Ghana’s debt restructuring process.
According to the UK-based firm, the rapid depreciation of the Ghanaian cedi through 2022, coupled with ongoing uncertainty around Ghana’s external debt restructuring process under the G20 Common Framework, will keep foreign investors cautious.
In its latest assessment of Ghana dubbed “Bleak Investment Outlook Dims Ghana’s Short-Term Growth Prospects”, it indicated that sentiment towards the Ghanaian market remains weak.
“Indeed, yields on the country’s Eurobonds traded at an elevated 34.4% (as of July 6), indicating that sentiment towards the Ghanaian market remains weak”.
“Moreover, we project that growth in Ghana’s most salient source markets – including the EU, UK and US – will soften over 2023”, it explained.
Explaining, Fitch Solutions said restrictive monetary conditions and still-elevated inflation in these markets will dampen appetite for overseas expansions.
These dynamics, it said, inform that view that Foreign Direct Investment inflows into Ghana will fail to return to pre-pandemic levels in 2023, further clouding the short-term outlook for fixed investment.
