Ghana and the United Kingdom have signed a bilateral agreement to restructure a portion of Ghana’s debt, a move expected to provide much-needed fiscal relief and reinforce the country’s economic recovery efforts.
The agreement, signed in Accra, cements terms reached in mid-2024 under the G20 Common Framework, which Ghana joined after its external debt default in December 2022.
Officials say the deal will ease government debt servicing pressures and strengthen the implementation of Ghana’s ongoing International Monetary Fund (IMF) programme.
Finance Minister Cassiel Ato Forson, who signed on behalf of Ghana, described the agreement as an important milestone in the country’s broader debt restructuring efforts.
He recalled the challenges of 2022 when Ghana first defaulted but said steady progress had been made since.
“Today we are signing another key bilateral agreement with the UK. This is a clear sign of the collective commitment to restore debt sustainability and support Ghana’s long-term recovery,” he said.
He says the government is making steady progress in restructuring the nation’s debt, following the signing of a $200 million bilateral agreement with the United Kingdom.
He noted that despite initial hurdles in engaging creditors, Ghana has since made significant headway.
“We have already concluded bilateral agreements with countries like France and China, and today we are pleased to add the United Kingdom to that list,” Dr. Forson said. “Our historic relationship with the UK makes this agreement particularly important, and it sends a strong signal to the rest of our partners that Ghana remains committed to restoring debt sustainability.”
The Minister explained that the agreement would cover the restructuring of $200 million, which will help ease fiscal pressures and provide resources to advance key infrastructure projects, including the Bolgatanga market modernization.
Dr. Forson added that while the signing marked an important milestone, more work lies ahead to secure Ghana’s economic stability.
“This agreement shows that progress is being made, but we remain aware that more needs to be done to ensure full recovery. We are determined to continue on this path until we achieve lasting debt sustainability and growth,” he stressed.
The agreement is expected to reduce debt servicing costs and free up resources for government priorities under its ongoing International Monetary Fund (IMF) programme.
Representing the UK government, His Majesty’s Trade Commissioner for Africa, John Humphrey, hailed the deal as “a landmark moment in the UK-Ghana partnership.”
He said the restructuring was not just about finances but a demonstration of confidence and shared ambition between the two nations. “By restructuring this debt in partnership with the Paris Club and G20, we are creating the fiscal space Ghana needs to deliver prosperity for millions. The UK is proud to stand with Ghana on this journey,” he added.
Mr. Humphrey also announced that UK Export Finance was working to restart five facilities to support critical projects under Ghana’s development agenda, unlocking up to £170 million to complete infrastructure in health, transport, and markets.
His Majesty’s High Commissioner to Ghana, Christian Rogg, who recently assumed office, said the signing marked both the end of a difficult chapter and the beginning of a new phase of cooperation.
He stressed that the deal would translate into “very tangible improvements in people’s daily lives,” from hospitals and roads to enhanced opportunities for trade and business.
Officials say the agreement will help Ghana free up resources to pursue its wider social and developmental priorities while consolidating gains from ongoing economic reforms.
