Rating agency, Fitch, expects Ghana and Zambia to emerge from default on their foreign-currency debt in 2024.

In its Regional Sub-Saharan African Sovereigns Outlook 2024, it stated that the two countries 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”, it added.

The UK-based firm continued that the macro outlook for sub-Saharan Africa in 2024 including Ghana points to stable median real Gross Domestic Product growth and lower average inflation, which nonetheless remains high across a number of 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”. 

Fitch, however, expects financing challenges to persist as most Sub-Saharan African sovereigns do not have affordable access to international capital markets without credit enhancements.

It stated that multilateral funding will remain a key support more broadly across the region. However, risks remain tilted to the downside.