Gov’t, Afreximbank settle dispute over US$750m loan

…paving way for renewed partnership

The government and African Export-Import Bank (Afreximbank) have resolved all outstanding issues surrounding a US$750 million facility signed in 2022, ending months of negotiations and clearing a key hurdle in the country’s debt resolution efforts.

In a joint statement issued Thursday, December 25, the Ministry of Finance and Afreximbank said the matter had been closed “to the satisfaction of both parties,” allowing cooperation to continue on future development programmes.

The settlement signals improving creditor relations as Ghana works to steady its debt position under an IMF programme.

The loan was approved by Parliament on July 20, 2022, at a time Ghana had lost access to the international bond market following credit rating downgrades.

Disbursement followed in August 2022 after conditions were met, structured in three tranches — US$187 million, €193 million and US$332 million — and carried a three-year grace period. The first two tranches had a seven-year tenor, while the final tranche extended to ten years.

The funds supported balance of payments needs, budget financing, trade flows and infrastructure spending at the peak of Ghana’s economic liquidity strain. But tensions surfaced after the government included the Afreximbank loan in its commercial debt restructuring.

The bank pushed back, arguing that its facility should receive treatment similar to other preferred multilateral obligations.

Talks stretched for months, drawing public scrutiny amid ongoing negotiations with Eurobond holders and bilateral creditors. Analysts viewed Afreximbank’s stance as a test case for how non-traditional lenders would be treated in debt workouts across Africa.

The Ministry of Finance said the resolution was an important milestone as the country rebuilds external confidence.

“We are pleased that this matter has been resolved amicably, allowing us to move forward in our shared objective of supporting Ghana’s development,” it noted, stressing that the relationship with Afreximbank remains strategic.

Afreximbank echoed the sentiment, saying the agreement reflects commitment from both sides to maintain long-term cooperation.

“This outcome allows us to focus on ongoing and future interventions that will aid Ghana’s recovery and growth,” the bank said in the statement.

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