The United States government has officially blacklisted Ghana from receiving foreign assistance, including development loans and flagship initiatives such as the Millennium Challenge Corporation (MCC), due to the country’s failure to honor debt obligations owed to Washington.
According to the MCC Candidate Country Report for Fiscal Year 2026, Ghana’s exclusion is a direct consequence of the country’s sweeping debt suspension and restructuring program launched in December 2022 at the height of its economic crisis. The decision is backed by Section 7012 of the U.S. State, Foreign Operations, and Related Programmes Appropriations Act for FY2025, which bars assistance to governments in default for more than one year on U.S.-issued loans unless the President issues a waiver in America’s national interest.
### Impact on Ghana’s Economy
The blacklisting is expected to complicate Ghana’s recovery from its economic crisis, which peaked in December 2022 when the Ministry of Finance suspended payments on external obligations. Analysts warn that losing access to U.S. development finance highlights the continuing risks of prolonged default and the importance of timely re-engagement with creditors.
MCC Funding and Ghana’s Development
Ghana has previously benefited from hundreds of millions of dollars in MCC compacts, funding critical projects in energy, transport, and infrastructure. Without a presidential waiver, these opportunities are now closed. The exclusion from MCC programs is particularly painful, as it will significantly impact Ghana’s development agenda, especially in the face of ongoing economic challenges and fiscal constraints.
Ghana’s Debt Restructuring Efforts
Ghana has made significant progress in restructuring its debt, including a landmark agreement with bilateral creditors led by China and France under the G20 Common Framework. The country has also struck a deal with bondholders that includes a 37% cut in face value, reduced interest rates, and protections against preferential treatment of other creditors. Despite these advances, Ghana is not expected to resume payments on bilateral debts until 2026.
Government Response
The Ghanaian government has acknowledged the situation and is working to address the concerns of the US government. The Minister of Foreign Affairs, Samuel Okudzeto Ablakwa, has described comments from US Senator James E. Risch as “offensive and condescending,” emphasizing Ghana’s sovereignty and right to conduct its foreign policy without external dictate.