A former Finance Minister, Seth Terkper, has stated that it is not far from the truth that credit rating agencies have some biases against African countries.

According to him, even though these biases exist, African countries must ensure that they manage their finances properly.

Speaking to JoyNews, he said “Let me begin that there are social and political and other biases against African countries…and so I cannot deny them. We are dealing with the financial market and I think that is important.

"We should bear that in mind and therefore be careful when we are dealing with the financial markets.”

He added “And the fact that I’m acknowledging that we must look internally too to what we also do.”

Meanwhile, researcher and Banking Consultant, Dr. Richmond Atuahene, has stated that international rating agencies have not been reckless in their ratings of the Ghanaian economy. According to him, there has not been a time when the agencies have downgraded the country unfairly.

He noted that the problem instead with the Ghanaian economy is over-borrowing and the country’s inability to manage its finances properly.

Speaking in a JoyBusiness interview on July 2, the Banking consultant said, "We have received positive ratings over the past 60 years that have even enabled us to borrow consistently from the international market.

"At least the last one was in 2021, we borrowed 3 billion. It was rated as B+ by Fitch. So, the issue is that we have not managed our debts very well. Unfortunately, it seems that it’s either we have over-borrowed or refused to put the necessary measures in place.

“So, in 2020, we were downgraded 11 times by these 3 rating agencies [Fitch, Moody’s, and S&P], the last one came in when the government decided in December that it was going to suspend interest payments in addition to the domestic debts. Then the country was actually proclaimed to have defaulted,” he intimated.

Earlier, President Nana Addo Dankwa Akufo-Addo stated that Africa’s problems have been exacerbated due to what he calls “reckless downgrades” by rating agencies.

According to him, the downgrades have impeded the chances of African countries to access financial assistance on the international market.

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