By Grace Zigah
A high-stakes conflict has erupted between Ghana and the African Export-Import Bank (Afreximbank) over the treatment of a $768.4 million debt, threatening to undermine the country’s debt restructuring efforts and rattle future relations with regional lenders across the continent.
The dispute comes just months after Ghana concluded a difficult round of negotiations with international creditors to restructure its unsustainable debt.
As part of that effort, Ghana successfully renegotiated terms on $13 billion worth of Eurobonds and bilateral loans from countries such as China.
These restructurings typically involve creditors agreeing to reduced interest rates, extended payment timelines, or even partial debt forgiveness — known as “haircuts” — to enable distressed countries to regain financial stability.
However, Afreximbank, a Cairo-based institution jointly owned by African governments and private investors, has refused to participate under the same conditions.
The bank insists that it holds “preferred creditor status,” a designation that exempts it from debt restructuring processes.
Such status is typically reserved for multilateral financial institutions like the International Monetary Fund (IMF) and World Bank, whose loans are considered senior and must be repaid in full, regardless of a country’s financial situation.
The Finance Minister, Cassiel Ato Forson, disputes this claim, asserting that Afreximbank’s loan is not immune from restructuring. “Ghana’s government doesn’t see Afreximbank as having preferred creditor status,” Forson said.
“We do not believe that their debt is senior to any other restructurable debt. The Afrexim debt is part of our restructurable envelope.”
This disagreement is more than a bilateral standoff; it could delay the final phase of Ghana’s debt resolution plan, which began after the country defaulted on its external obligations in December 2022.
The default was triggered by a severe economic downturn, compounded by global inflation, currency depreciation, and revenue shortfalls during and after the COVID-19 pandemic.
Ghana’s standoff with Afreximbank could have ripple effects across the continent. Regional lenders like Afreximbank have become major financiers for African countries amid shrinking Western financial support.
How this dispute is resolved may set a precedent for similar debt negotiations in Zambia, Kenya, Ethiopia, and other nations grappling with fiscal crises.
Zambia’s experience under the G20’s Common Framework — an initiative designed to streamline debt restructuring for low-income countries — illustrates how complex and contentious these processes can become, especially when multiple creditors with varying legal claims are involved.
Complicating matters further is Afreximbank’s recent legal track record. On May 8, the bank secured a court victory against South Sudan over $657 million in defaulted loans.
The ruling, which includes a 13.5% post-judgment interest rate, reinforced the bank’s willingness to pursue repayment aggressively, even from fellow African nations.
Afreximbank maintains that its operations are governed by its founding treaty — not external frameworks like the G20 Common Framework — and thus its claims are not subject to modification by outside arbitration or collective negotiations
