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Ghana has been declared ineligible to receive financial assistance from the Millennium Challenge Corporation (MCC) for fiscal year 2026. The MCC’s Candidate Country Report for FY 2026, submitted to the U.S. Congress, reveals that Ghana’s ineligibility stems from a “debt default restriction” outlined in Section 7012 of the FY 2025 U.S. Appropriations Act.
Ghana’s inability to finalize its debt restructuring agreement with external creditors has led to its ineligibility. The MCC requires countries to have a clean bill of financial health to qualify for assistance. Ghana’s debt restructuring process, which began after the country’s external debt distress was declared in 2022, is still ongoing. The country is negotiating with external creditors under the G20 Common Framework, tied to its $3 billion program with the International Monetary Fund (IMF).
The suspension of U.S. economic aid is expected to slow down certain development initiatives in education, health, and governance. Ghana will not benefit from MCC’s development compacts, which provide large-scale grants to partner countries demonstrating strong commitment to democratic governance, economic freedom, and investment in people. However, Ghana’s status could change in the future if it resolves its ongoing debt restructuring process. Once the debt restructuring is finalized, Ghana may regain eligibility for MCC assistance.
Ghana is among 18 countries disqualified due to legal prohibitions, including nations under military rule, those sanctioned for human rights violations, or those facing financial sanctions. The MCC report highlights that over 80 countries were listed as eligible candidate countries for FY 2026, including Kenya, Côte d’Ivoire, and Senegal. These countries have demonstrated strong commitment to democratic governance, economic freedom, and investment in people, making them eligible for MCC’s development compacts.
Story by: epos
