Fitch Ratings expects the outlook for sub-Saharan African sovereigns to be neutral in 2025.
This the UK-based firm says will reflect a stronger macroeconomic outlook and modest fiscal consolidation balanced against still-challenging financing conditions and political and insecurity risks.
It forecasted Gross Domestic Product (GDP) growth rate to improve driven by reforms.
“We forecast growth will improve driven by reforms and recovery from drought. Momentum in Nigeria and South Africa, the two largest SSA economies, will generate positive spillovers”.
It continued that a tighter policy should help tame inflation whilst improved growth and fiscal reforms should reduce regional government debt/GDP, while lower policy rates will ease domestic financing costs.
However, the median average financing costs will rise further, and interest/revenues will be uncomfortably high for many countries in the region.
It concluded that financing challenges will remain, particularly for those at the lower end of the rating scale including Ghana.
However, the three Common Framework restructurings are expected to be completed in 2025.
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