Why is Ghana’s sovereign debt raising eyebrows?

Is Ghana a potential victim of interest rate hikes or a bigger problem?

A darling of western investors, Ghana, may be losing some lustre. The country of about 32 million has long been viewed as an economic gateway to West Africa (alongside Nigeria) with many investors happy to overlook its high level of public debt, which is estimated at 81% of GDP at the end of 2021, according to Fitch Ratings.

Tech companies were happy to come to Ghana with Google opening its first AI centre in the Ghanian capital of Accra in 2019. Twitter followed suit with its first African office in 2021.