The Ministry of Finance has announced that Ghana and Afreximbank have reached a successful resolution regarding the $750 million facility.
In a joint statement, the Ministry of Finance and Afreximbank disclosed that all issues relating to the $750 million facilities signed in 2022 have been resolved, “with the satisfaction of both parties enabling both parties to continue to partner for Ghana’s development agenda.”
Background
On July 20, 2022, Parliament, at its 31st sitting of the Second Meeting of the Second Session, approved by resolution the Loan Facility Agreement between the Government of Ghana, represented by the Ministry of Finance, and the African Export-Import Bank (Afreximbank).
The move was influenced by challenges in securing funds from the capital market due to downgrades by all major ratings agencies.
The facility was disbursed in three tranches, two denominated in US dollars and one in euros: US$187 million, €193 million, and US$332 million.
The government was expected to enjoy a three-year grace period or moratorium for the facility. However, the US$187 million and €193 million tranches would have a tenor of seven years, while the US$332 million tranche would have a tenor of ten years.
Sources say the government executed the facility agreement in August and met all conditions precedent for disbursement. The utilisation request was signed in August, and the government received SWIFT confirmation of the successful transfer of funds into the Bank of Ghana designated accounts on August 25, 2022.
The Government of Ghana’s decision to include Afreximbank’s debts in a broader commercial debt restructuring plan, triggered by its IMF-backed bailout, did not go down well with Afreximbank.
Afreximbank argued that its debts should be treated in the same way as Ghana’s obligations to the IMF and World Bank.
Ghana, on the other hand, insisted that Afreximbank is not a multilateral institution and should therefore not be excluded from the restructuring. Afreximbank disagreed, arguing that it meets the criteria of a multilateral institution and should be spared from debt haircuts.
This disagreement contributed to Fitch’s June 2025 downgrade of Afreximbank’s credit rating to just above junk status, citing uncertainty created by the debt positions of Ghana and Zambia.
Despite this, government officials at a meeting in Abuja told JOYBUSINESS that positive progress had been made toward resolving the dispute.
The joint statement, however, did not provide detailed information on the specific terms of the resolution reached between Ghana and Afreximbank.
