Ghana’s efforts to restructure its external debt have hit a significant roadblock as the government challenges the preferred creditor status claimed by the African Export-Import Bank (Afreximbank). The disagreement centers on a $768.4 million loan Ghana took from the bank, now under scrutiny as the country seeks broad debt relief from various creditors.
The standoff has drawn attention from global investors and policymakers, as it could have wider implications for how African multilateral institutions are treated in future sovereign debt restructurings.
According to Bloomberg, Ghana’s government is insisting that Afreximbank’s loan be included in the debt relief process alongside eurobonds, bilateral loans, and other commercial debts. This puts Accra at odds with the bank, which asserts its exemption from such restructuring based on its founding treaty.
“We do not believe that their debt is senior”
Finance Minister Dr. Cassiel Ato Forson was clear in his position. “Ghana’s government doesn’t see Afreximbank as having preferred creditor status,” he said. “We do not believe that their debt is senior to any other restructurable debt. The Afrexim debt is part of our restructurable envelope.”
Ghana is currently navigating a complex debt overhaul after defaulting on most of its external obligations in December 2022. While it has made progress with bilateral creditors and is negotiating with bondholders, its push to include Afreximbank in the process is testing the limits of regional finance norms.
Afreximbank Rejects Restructuring Effort
In response, Afreximbank has strongly opposed the move. On a recent call with investors, Chandi Mwenebungu, the bank’s managing director, stated: “We’re not part of Ghana’s restructuring program. We have no plans to go against our own treaty.”
The bank argues that its role as a multilateral lender justifies a special status similar to institutions like the IMF and World Bank. Its officials maintain that the terms of their financing are grounded in a legal framework that shields them from restructuring demands.
Precedent and Pressure
The impasse is raising broader concerns over the legal clarity of Africa’s financial architecture. Experts like Thomas Moatti of Lazard, which advises Ghana, have described the situation as a “complete gray zone,” citing the lack of established global consensus on the status of African multilateral lenders.
For Ghana, the implications are immediate. Failure to reach a comprehensive debt deal could stall its economic recovery under the IMF-supported program. For the rest of the continent, the outcome may determine whether institutions like Afreximbank can continue to lend confidently during crises, or will face growing pressure to share restructuring burdens.
Afreximbank has already demonstrated a willingness to enforce its claims in court. Earlier this month, it won a $657 million judgment against South Sudan over unpaid debt, with a 13.5% interest rate applied post-ruling.
What Comes Next?
As Ghana pushes ahead with its debt negotiations, the question of whether regional lenders can or should be treated like other creditors remains unresolved. The outcome of Ghana’s dispute with Afreximbank could set a precedent across the continent, influencing how future crises are managed from Accra to Lusaka and beyond.
