Ghana has been officially blacklisted from receiving financial assistance under the United States’ Millennium Challenge Corporation (MCC) program, a m
Ghana has been officially blacklisted from receiving financial assistance under the United States’ Millennium Challenge Corporation (MCC) program, a move that underscores growing diplomatic and economic tensions between Accra and Washington.
The decision, announced in the MCC Candidate Country Report for Fiscal Year 2026, cites the debt distress and ongoing restructuring negotiations as key reasons for the suspension.
Debt Troubles
According to the report, Ghana is deemed ineligible under Section 7012 of the Fiscal Year 2025 State and Foreign Operations Appropriations Act (SFOAA), which bars countries in debt default from receiving certain U.S. assistance until restructuring agreements are finalized.
This restriction follows Ghana’s declaration of default on most of its external debt in December 2022, a crisis that pushed the government to the International Monetary Fund (IMF) for a $3 billion bailout program.
While Ghana has since made progress in negotiations with bilateral creditors under the G20 Common Framework, the MCC decision highlights the country’s fragile fiscal position and its uncertain path to debt sustainability.
The suspension marks a major setback in a longstanding partnership.
Ghana has benefited from two MCC compacts since 2006, receiving over $548 million in grants to improve energy access, transportation, agriculture, and education.
The most recent $498 million compact, signed in 2014, focused heavily on reforms in the power sector, including the controversial concession agreement involving the Electricity Company of Ghana (ECG).
Analysts say the loss of eligibility jeopardizes Ghana’s chances of securing a third MCC compact, which many policymakers had hoped would support infrastructure and private sector competitiveness.
Washington vs. Beijing: A New Flashpoint
The aid suspension has been compounded by sharp rhetoric from Washington. U.S. Senator James E. Risch, ranking Republican on the Senate Foreign Relations Committee, accused Ghana of prioritizing debt repayments to China while neglecting obligations to American firms and taxpayers.
“The United States cannot continue to provide financial support to countries that prioritize repayments to Beijing over obligations to American interests,” Senator Risch declared, alluding to China’s rising influence in Ghana through loans and infrastructure investments, including roads, railways, and energy projects.
Push Back
Foreign Affairs Minister, Samuel Okudzeto Ablakwa, swiftly rejected the Senator’s remarks, describing them as “offensive and condescending.”
“This is very rich coming from someone who refuses to advocate for reparations from the United States for its despicable role in the transatlantic slave trade,” Ablakwa fired back.
“You will not be allowed to dictate to a sovereign country how it conducts its foreign policy.”
His fiery response has fueled a domestic debate about whether Ghana should adopt a more assertive foreign policy stance in its dealings with Western partners, or whether the country risks alienating traditional allies at a time of economic vulnerability.
Implications For Ghana’s Development Agenda
Observers war that the diplomatic row could complicate the delicate balancing act between the U.S. and China, especially as the government seeks to restructure over $20 billion in external debt while simultaneously courting foreign investment.
The suspension of MCC funding also threatens to derail parts of Ghana’s development agenda, with potential consequences for infrastructure financing, energy reforms, and job creation.
For a country already struggling with high inflation, a weakened currency, and fiscal austerity measures under the IMF program, the loss of a major aid stream is yet another blow.
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