Mahama’s Reforms Pay Off as Ghana Tops ECOWAS Compliance List for Eco Launch
By: Nana Kwasi Roka
Ghana has emerged as the most prepared economy for the ECOWAS single currency, the Eco, after meeting nearly all the key convergence criteria in under a year of the Mahama administration.
Third-quarter 2025 data confirms that Ghana has achieved the primary macroeconomic targets required for the regional monetary union – an impressive milestone marking a sharp turnaround from the distressed economic conditions inherited in January 2025.
A major highlight of the progress is the drastic reduction in inflation. The Mahama government slashed inflation from 23% at the start of the year to 8%, comfortably meeting the ECOWAS benchmark of maintaining annual average inflation below 10%.
On fiscal discipline, Ghana recorded a projected budget deficit of 2.8% of GDP for the third quarter of 2025, beating the ECOWAS limit of 3%. The country also strengthened its external position, building gross international reserves that cover 4.8 months of imports, surpassing the minimum target of three months.
In compliance with ECOWAS rules on monetary financing, the government maintained zero central bank financing of the national budget – well within the requirement that such financing must not exceed 10% of the previous year’s revenue.
Ghana’s debt management has also seen remarkable gains. The debt-to-GDP ratio improved to 43.8% by June 2025, significantly outperforming the ECOWAS ceiling of 70%, and far ahead of IMF projections that estimated a year-end ratio of around 59–60%.
These achievements make Ghana the only ECOWAS member state currently meeting virtually all primary criteria for the adoption of the single currency. This marks a dramatic shift from January 2025, when international credit rating agencies had downgraded the country to junk status.
The recovery has since earned Ghana renewed global confidence. All three major rating agencies – S&P Global Ratings, Fitch Ratings and Moody’s – have upgraded Ghana’s credit status following debt restructuring and strengthened fiscal management.
Fitch upgraded Ghana to B- with a stable outlook in June.
S&P Global followed with the same B- rating and a stable outlook in November.
Moody’s earlier raised Ghana’s rating to Caa1, also with a stable outlook.
Adding to the renewed stability, the cedi continues to appreciate. From nearly GH¢17 to the dollar in December 2024, the currency now trades at GH¢10.8 to the dollar.
With these gains, Ghana stands at the forefront of ECOWAS’ readiness for the Eco, placing the nation in a commanding position as the region edges closer to realizing its long-awaited single currency vision.
