- Ghana secures UK debt restructuring under G20 framework
- £170mn projects set to resume after 2022 default
ACCRA, GHANA – Ghana signed a 15-year debt restructuring deal with the United Kingdom worth $256 million on Wednesday, offering fiscal relief and reviving major infrastructure projects stalled since its 2022 default.
The agreement, concluded under the G20 Common Framework, covers obligations to the UK and is tied to a $3 billion International Monetary Fund programme. It follows a similar deal with France in July, giving Ghana much-needed fiscal breathing space.
Finance Minister Cassiel Ato Forson described the deal as a turning point.
“It has been a long journey,” Forson said at the signing ceremony in Accra. “We called on our creditors and our partners to assist us to restructure our debt. It wasn’t what we wanted to do, but the situation made it necessary.”
Debt relief gains momentum
The UK pact follows France’s bilateral debt relief agreement that legally formalised a June 2024 memorandum of understanding between Ghana and the Official Creditor Committee co-chaired by France and China. The terms included suspending debt service payments during the IMF programme, reducing interest rates, and extending maturities.
Forson called the French deal a “critical milestone” that paved the way for the UK and other bilateral creditors to finalise agreements. Together, the two arrangements are seen as essential for stabilising Ghana’s finances after the pandemic and a downturn that exposed structural vulnerabilities.
“Inflation has been easing, debt ratios are declining, and growth in the real sector is rebounding. The government expects inflation to return to single digits by the end of the year,” Forson said.
The restructuring clears the way for five suspended UK Export Finance-backed projects valued at about £170 million ($210 million). They include the Bolgatanga-Bawku-Pulmakom road in the north, the second phase of the Obetsebi Lamptey Interchange in Accra, Kumasi’s Kejetia Market redevelopment, a 508-bed maternity and children’s block at Komfo Anokye Teaching Hospital, and the first phase of the Tema-Aflao highway.
“We believe that after signing this agreement, these projects will immediately begin,” Forson said. “The Government of Ghana will take steps to ensure we do our part so that disbursement can start in earnest.”
John Humphrey, the UK’s Trade Commissioner for Africa, said the restructuring would help Ghana deliver on broader ambitions.
“By restructuring this debt in partnership with the Paris Club and G20, we’re creating the fiscal space Ghana needs to deliver on its bold vision for the future, including the 24-hour economy and the big push initiatives,” he said.
Outlook and challenges
Ghana defaulted on most of its $30 billion external debt in 2022 after a currency crash and soaring debt-service costs. It has since restructured domestic bonds and signed agreements with France, China, and now the UK, while negotiations with private bondholders continue.
Forson cautioned that the path ahead remains uncertain.
“We are not out of the woods yet,” he said. “We will proceed cautiously with reforms to avoid slipping back into crisis.”
