Ghana resolves $750m Afreximbank debt dispute

Government has successfully resolved a $750 million debt facility with the African Export-Import Bank (Afreximbank), a development that comes after weeks of uncertainty over the treatment of the loan in Ghana’s broader debt restructuring programme.

According to Finance Minister Dr. Cassiel Ato Forson, the agreement resolves the issues surrounding the facility signed in 2022, to the satisfaction of both parties, enabling Ghana and Afreximbank to continue partnering on the country’s development agenda.

On his official Facebook page on Thursday December 25, the Finance Minister explained that the resolution allows both the Government of Ghana, acting through the Ministry of Finance, and Afreximbank to move forward collaboratively, reinforcing confidence in the country’s debt management strategy.

Ghana, fresh from a tough debt restructuring process, had previously sought Afreximbank’s loan to be treated like other debts it had already restructured, including bilateral loans from China and $13 billion worth of eurobonds.

In typical debt restructurings, lenders may extend payment deadlines, reduce interest rates, or take partial losses known as “haircuts” to support a struggling country’s recovery.

However, Afreximbank had initially resisted, citing its “preferred creditor status,” a designation that usually allows institutions like the IMF or World Bank to be repaid in full ahead of other creditors.

The disagreement raised concerns that it could delay Ghana’s debt resolution and influence how regional lenders are treated in future debt talks across Africa.

The successful resolution, therefore, not only secures Ghana’s standing with a key regional lender but also sets a precedent for smoother negotiations with other creditors in the future, reinforcing the country’s commitment to fiscal responsibility and macroeconomic stability.