Commitment from Ghana’s external creditors has given Accra temporary relief in terms of debt management. But analysts fear that China – already standing accused of dragging negotiations around Zambia’s debt restructuring – could present a major hurdle for Ghana.
The IMF, which approved a $3bn relief package for Ghana in May, has warned that delays in debt restructuring agreements with external creditors will hurt the successful implementation of the bailout programme.
China is central to the debate, with Ghana owing the Asian giant $1.9bn in debt.
About $619m of Ghana’s debt with China is collateralised, backed by assets including cocoa, bauxite, and oil, according to the IMF. This puts the country at risk of losing important resources if repayments are called upon, especially if China isn’t willing to make concessions on this.
“Ghana’s case is critical because on
There’s more to this story
Get unlimited access to our exclusive journalism and features today. Our award-winning team of correspondents and editors report from over 54 African countries, from Cape Town to Cairo, from Abidjan to Abuja to Addis Ababa. Africa. Unlocked.
Already a a subscriber