President Mahama
Government of the United States has suspended financial assistance to Ghana under the Millennium Challenge Corporation (MCC) programme, citing concerns over the country’s debt obligations and ongoing restructuring efforts.
Current diplomatic tensions between Washington and Accra have also been cited for Ghana’s predicament.
According to the recently released MCC Candidate Country Report for Fiscal Year 2026, the Trump administration has named Ghana ineligible to receive assistance due to its default status under the Section 7012 debt restriction of the FY 2025 State and Foreign Operations Appropriations Act (SFOAA).
The restriction remains in place pending the finalisation of a debt restructuring agreement.
This development followed heightened diplomatic tensions between Accra and Washington.
U.S. Senator James E. Risch, a senior Republican on the Senate Foreign Relations Committee, publicly criticised Ghana for prioritising debt repayments to China while allegedly neglecting financial obligations to U.S. companies 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 said, referencing Ghana’s increasing financial ties with China, which has provided the West African nation with substantial loans and infrastructure funding in recent years.
Ghana’s Minister for Foreign Affairs and Regional Integration, Samuel Okudzeto Ablakwa, issued a strong response, calling the Senator’s comments “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.
“You will not be allowed to dictate to a sovereign country how it conducts its foreign policy,” Mr Ablakwa said.
The exchange has sparked debate over the tone and implications of Ghana’s foreign policy posture, particularly at a time when the country is navigating a delicate balance between major global powers and seeking to restructure its mounting external debt.
Observers have expressed concern that the diplomatic fallout could complicate Ghana’s efforts to maintain strong relations with Western partners while deepening economic cooperation with China.
The suspension of MCC aid is expected to have significant implications for Ghana’s development agenda, especially as the country grapples with ongoing economic challenges and fiscal constraints.