Ghana’s Ministry of Finance has reaffirmed its commitment to impartiality in its ongoing external debt restructuring process, declaring in a statement issued today that “no creditor has been treated preferentially,” in strict adherence to the G20 Common Framework.
The statement, while not naming any institutions, is believed to have been triggered by mounting discussions and concerns on the sidelines of the ongoing African Development Bank (AfDB) Annual General Meetings in Abidjan, Côte d’Ivoire, where key topics include debt transparency, regional financial integration, and the election of a new president for the continental lender.
According to the Ministry, Ghana continues to remain in arrears to all creditors within the restructuring perimeter and is applying the principle of Comparability of Treatment without exception.
“In line with Ghana’s commitments to official creditors, no creditor has been treated preferentially. We have strictly applied the provisions in the Memorandum of Understanding… and continued to remain in arrears with all external creditors,” the statement read.
Afreximbank’s Push for Preferred Treatment
Behind this veiled clarification lies growing speculation that the African Export-Import Bank (Afreximbank), a key regional lender, is lobbying for preferred creditor status a designation typically reserved for legacy multilaterals like the IMF, World Bank, and AfDB.
At the centre of the storm is a $750 million loan Afreximbank extended to Ghana in 2022. The deal raised questions over its opaque structure and relatively high interest rates. Now, Afreximbank contends that its status as a regional multilateral development bank owned by African governments warrants repayment priority.
Its argument hinges on the notion that preferred creditor status is based on practice, not binding international law, and can be granted via agreement between debtor and creditor.
Analysts Warn of Precedent Risk
Policy analyst Bright Simons has challenged Afreximbank’s claim, insisting that preferred treatment must be earned through institutional transparency and consistent governance.
“If Afreximbank’s lending continues to exhibit commercial features, including confidentiality and market sensitivity, the demand for preferred status would continue to be hard to justify,” Simons stated.
He further cautioned that selectively granting preferred status to certain creditors could fracture the global debt restructuring framework by undermining the Comparability of Treatment principle.
“It’s a slippery slope,” he warned, noting that any deviation from established norms could ripple across other developing nations facing similar debt challenges.
Ghana’s Balancing Act
Now under new political leadership, Ghana faces a delicate balancing act. Upholding its commitment to comparability helps maintain trust with bilateral and commercial lenders but resisting Afreximbank’s lobbying could strain relations with one of Africa’s most influential financial institutions.
Observers say the Ministry’s latest statement serves as a diplomatic yet firm rejection of any special carve-outs, signaling to all creditors, Afreximbank included that Ghana is staying the course.
A Pan-African Financial Dilemma
This impasse reflects a deeper identity struggle within African finance: Should regional institutions like Afreximbank operate by the same governance and disclosure standards as their Western counterparts if they want the same privileges?
Proponents say yes especially if these institutions are to inspire long-term investor confidence. Others argue that true Pan-African solidarity requires enabling institutions like Afreximbank to rise to equal footing, especially in times of fiscal distress.
But Ghana’s firm stance indicates that parity must come with accountability.
