Ghana’s poor ratings result of Government’s data inconsistencies – Analyst

Ghana's poor ratings by international agencies should not be blamed on bias or recklessness, but rather on data inconsistencies and other risks that the country presents, according to a political risk analyst.

Dr. Theo Acheampong, Political Risk Analyst, made the assertion when he appeared on Accra-based JoyNews’ PM Express on Wednesday, July 5.

"The supposed reckless behavior of the rating agencies doesn't exist. If there is anything at all, it is on the part of our governments,” he contended.

He argued that African countries pay more to access capital markets due to inconsistent data and other political risks that rating agencies take into account.

However, he believes Ghana can improve its ratings by addressing these issues.

“There are issues that are driving bond pricing... There are country political risk factors that are at play that should be factored into the equation," the risk analyst said.

The comments come after President Akufo-Addo criticized rating agencies for "reckless downgrades" that contributed to Ghana's economic challenges.

But the analyst says the solution lies with Ghana improving its data and risk profile, not blaming agencies.

"It is true that African countries are paying more to access the capital market than other comparator countries. This is because sometimes the data we provide are not consistent,” JoyNews quoted him.

Political risk and revenue mobilization will be key to reverse the trend, according to the analyst.

If Ghana addresses these challenges, he stressed can aspire to better ratings that boost investor confidence and access cheaper capital.

"But the onus lies on Ghana to improve its fundamentals, not blame external ratings," he concluded.