Ghana, Afreximbank Resolve Dispute Over $750m Loan Facility
The Government of Ghana and the African Export-Import Bank (Afreximbank) have resolved all outstanding issues relating to a US$750 million facility contracted in 2022, ending months of negotiations and removing a key hurdle in Ghana’s ongoing debt resolution process.
In a joint statement issued on Thursday, December 25, the Ministry of Finance and Afreximbank said the matter had been concluded “to the satisfaction of both parties,” clearing the way for continued cooperation on future development programmes.
The resolution comes as Ghana works to stabilise its debt position under the International Monetary Fund (IMF)-supported programme and restore confidence among external creditors.
The facility was approved by Parliament on July 20, 2022, at a time Ghana had effectively lost access to the international capital markets following a series of sovereign credit rating downgrades. Disbursement commenced in August 2022 after all conditions precedent were met.
Structured in three tranches — US$187 million, €193 million and US$332 million — the loan carried a three-year grace period. The first two tranches had a seven-year tenor, while the final tranche was structured with a ten-year maturity.
Proceeds from the facility were used to support balance of payments needs, budget financing, trade flows and infrastructure spending during the peak of Ghana’s liquidity pressures.
Tensions later emerged after the government included the Afreximbank facility in its commercial debt restructuring exercise. Afreximbank resisted the move, arguing that its exposure should be accorded treatment comparable to preferred multilateral obligations rather than classified as commercial debt.
Negotiations between the two sides stretched over several months and attracted public scrutiny, particularly as Ghana simultaneously engaged Eurobond holders and bilateral creditors. Analysts viewed the standoff as a potential precedent for how non-traditional lenders would be treated in sovereign debt restructurings across the continent.
Commenting on the development, the Ministry of Finance described the resolution as an important milestone in Ghana’s debt management efforts.
“We are pleased that this matter has been resolved amicably, allowing us to move forward in our shared objective of supporting Ghana’s development,” the Ministry said, stressing that Afreximbank remains a strategic partner.
Afreximbank, for its part, said the agreement reflects a mutual commitment to sustaining long-term cooperation.
“This outcome allows us to focus on ongoing and future interventions that will aid Ghana’s recovery and growth,” the Bank noted.
