The United States has reportedly blocked Ghana from accessing foreign assistance, including development loans and the Millennium Challenge Corporation (MCC), after the country failed to meet key debt obligations to U.S. entities.
The restrictions will take effect in the 2026 financial year.
The move follows Section 7012 of the FY 2025 State, Foreign Operations, and Related Programs Appropriations Act, which blocks U.S. aid to countries that default on debt owed to or guaranteed by U.S. creditors unless a restructuring deal is reached.
Two defaults triggered the restriction: Ghana’s December 2022 suspension of payments on most external public debt, and roughly $251 million owed to U.S. companies, some backed by the U.S. International Development Finance Corporation.
Senate Foreign Relations Committee Chairman James Risch has criticized Ghana for prioritizing Chinese creditors over American firms.
The debts involve government-controlled entities, including the Electricity Company of Ghana, and are considered part of the country’s $2.6 billion energy-sector legacy debt.
The MCC and U.S. State Department confirmed compliance with Section 7012, indicating aid will remain blocked until Ghana restructures or clears the outstanding obligations.
