Fitch Solutions, an international rating agency, has projected a forthcoming appreciation in the value of the Ghanaian cedi.
The agency attributed this optimistic outlook to several factors, particularly the government’s progress in restructuring its commercial debt, which is expected to bolster the cedi’s strength.
Anticipating that these advancements would enhance investor confidence in Ghana’s economy and policymaking, Fitch Solutions foresees increased foreign exchange inflows, thereby strengthening the cedi in the latter part of 2024.
Additionally, the agency predicts a partial recovery for the Ghanaian cedi in the coming months, forecasting its year-end value to reach USD 12.25.
Fitch Solutions highlighted that the cedi had depreciated by 11 percent against the US dollar since the beginning of the year, ranking it among the worst-performing currencies globally. It also noted the concerning decline in reserves, resulting in diminished import cover.
“Solid growth of over 80%+ is also projected in Lusaka and Mombasa. Cape Town is on track to overtake Johannesburg to become Africa’s wealthiest city by 2030. We expect several major Johannesburg-based companies to move their head offices to Cape Town over the next decade, which should help to drive wealth growth in the city,” he stated.
