Ghana and Zambia To Exit Default on Foreign-Currency Debt in 2024 - Fitch Reports

-

In a recent release of their Regional Sub-Saharan African Sovereigns Outlook for 2024, Fitch, the rating agency, has expressed optimism regarding Ghana and Zambia's ability to recover from default on their foreign-currency debt. 

According to Fitch, both countries are expected to navigate through their debt restructuring processes, eventually marking an exit from default this year.

Related To This: Seek A Lengthy Debt Repayment Plan With China - US Finance Professor To Ghana

Fitch forecasts a gradual fiscal consolidation for these nations, primarily driven by financing constraints and ongoing fiscal reform efforts. Interestingly, these reform initiatives are often tied to IMF programmes, underlining the international influence and support shaping the recovery path for both countries. The anticipated fiscal consolidation is poised to contribute to a stabilization of government debt-to-GDP ratios.

Despite this positive outlook, uncertainties loom over the debt restructuring process as Fitch notes that the Common Framework-based approach in both Ghana and Zambia remains susceptible to potential delays.

Furthermore, Fitch's assessment for the broader macroeconomic landscape in sub-Saharan Africa for 2024 highlights stable median real GDP growth and a reduction in average inflation. However, it's important to note that inflation levels remain relatively high across several sovereigns within the region.

Fitch also underscores ongoing financing challenges, pointing out that most sub-Saharan African sovereigns face limitations in accessing international capital markets without the necessary credit enhancements. As a result, the availability of multilateral funding is anticipated to continue playing a pivotal role in supporting the region's financial stability.

READ ALSO: Dollar Scarcity Is Driving More African Nations Into Crisis.

While multilateral funding is expected to serve as a key pillar of support, Fitch emphasizes that risks persist and are tilted toward the downside. This suggests that despite the positive recovery expectations, there are lingering uncertainties and potential challenges that could affect the region's financial outlook in the near term.

https://bigfamilyonlinenews.blogspot.com


Comments

Post a Comment

Popular posts from this blog

GJA Calls For Media Blacklist on Yendi MP for Allegedly Assaulting Journalist

-
Image
In response to allegations of assault against Mohammed Aminu M. Alabira, the Northern Regional Correspondent for Citi TV, the Ghana Journalists Association (GJA) has called for a national media boycott of Farouk Aliu Mahama, the Member of Parliament for Yendi. Important industry actors have endorsed the GJA's directive: the Media Foundation for West Africa (MFWA), the Private Newspaper Publishers Association of Ghana (PRINPAG), and the Ghana Independent Broadcasters Association (GIBA). Related To This: Hawa Koomson Threatens to Sue GJA President Over Assault Allegations The coalition asked all media outlets to uphold Farouk Aliu Mahama's blacklisting till further notice during a joint press conference on Tuesday, February 6. The media professionals were put at serious risk due to the MP's purported connections to those who could potentially pose a threat to journalists. The groups emphasized, "All media houses must refrain from providing any coverage, interviews, or a
Read more

Taxes Now Serve as Punishment to Businesses - Mark Badu-Aboagye

-
Image
The Ghana Chamber of Commerce and Industry's CEO, Mark Badu-Aboagye, has expressed grave concerns about the growing burden of direct and indirect taxes placed on the country's enterprises.  During an open discussion on JoyNews' PM Express, Mr. Badu-Aboagye brought attention to the mounting difficulties that businesses are facing in light of rising expenses and financial commitments, especially with regard to tax responsibilities. Related To This: Akufo-Addo's Imposed Tax Policies Will Make The Next President Suffer - Franklin Cudjoe Mr. Badu-Aboagye expressed his dismay and emphasized the unsettling consequences of the existing tax structure, describing it as harsh and onerous for companies aiming for expansion and sustainability.  He underlined, saying, "I believe that rather than helping businesses, our taxes now serve as a punishment to them. This is because they expect you to pay, but we are unable to. They are beating us but they are telling us to keep quiet.&
Read more

Use Emission Tax Funds to Support EPA - Professor Kofi Amegah

-
Image
The University of Cape Coast's renowned environmental and nutritional epidemiology lecturer, Professor Kofi Amegah, has suggested that money from emission levies be used to support environmental protection organizations.  During his February 1 appearance on The Pulse on JoyNews, Professor Amegah emphasized how vital it is to improve the Environmental Protection Agency's (EPA) capacity to efficiently track pollution levels and strengthen environmental conservation measures. Related To This: Implementation of Emissions Levy Act Commences Today Professor Amegah emphasized the need to reallocate a portion of the proceeds from the emission tax in order to relieve the EPA's budgetary constraints, given its limited resources. He highlighted that such support would enable the acquisition of reference-based monitors, which, when installed in urban areas, can furnish essential data vital for formulating effective air pollution control policies. Additionally, the resulting data would
Read more