Keypoints:
- Ghana repays Afreximbank while in default
- Other creditors demand equal treatment
- Tensions rise over restructuring fairness
GHANA’S decision to stay current on loan repayments to the African Export-Import Bank (Afreximbank) is fuelling fresh tensions with its other creditors, who had already agreed to take losses to help the country recover from default, Reuters has reported.
According to two sources cited by Reuters, Afreximbank told investors during a May 15 call that both Ghana and Malawi—another country undergoing debt restructuring—were up to date on their loan obligations. The comments indicate that neither country has accumulated arrears with the lender.
Ghana, which defaulted in 2022 amid a deep economic crisis triggered by Covid-19, the war in Ukraine, and soaring global interest rates, has already restructured $13bn in international bonds and debt owed to official creditors. But it still must address its outstanding commercial debt to fully exit default.
Multilateral status under scrutiny
Afreximbank describes itself as a multilateral financial institution—comparable to the World Bank and IMF—which typically exempts it from participating in debt relief initiatives. But that claim is now facing pushback.
Reuters sources said that the Paris Club, a group of official bilateral creditors, insists that Ghana—as well as Zambia—must also restructure their debts to Afreximbank and the Eastern and Southern African Trade and Development Bank (TDB), despite the institutions’ multilateral status.
Ghana, in a statement issued on Thursday, maintained that it remains in arrears with all external creditors eligible for restructuring, adding that no lender had received preferential treatment. The government also told Bloomberg last week that it intends to restructure its loans from Afreximbank, seemingly contradicting the lender’s suggestion that Ghana is up to date.
Afreximbank declined to comment further, pointing only to a May 21 statement which confirmed it was not participating in any debt restructuring involving its member countries.
Clause in bond deal raises concerns
The timing of Ghana’s payments to Afreximbank is particularly sensitive. As part of its debt overhaul, the country issued new international bonds in late 2024 which included a clause stipulating that commercial creditors could not be treated more favourably than bondholders.
If Afreximbank’s loans are deemed commercial, then Ghana’s continued repayment could potentially violate that clause.
Ghana owes the lender at least $750 million. If classified as commercial debt, this would make up nearly a quarter of Ghana’s $4 billion commercial debt pile, according to UK-based think tank ODI Global.
‘Zambia, Ghana and Malawi are caught in the middle between different creditors,’ said Chris Humphrey, senior research associate at ODI. ‘They’re being forced to make a difficult decision.’
Neither Malawi nor Zambia responded to requests for comment. However, Zambian officials have previously stated they plan to restructure Afreximbank loans.
Credit rating pressure looms
With a $42bn balance sheet, Afreximbank is a crucial financier on the continent—especially at a time when concessional loans and aid are drying up. Its loans often come at higher interest rates than those from traditional multilateral institutions.
The bank said its non-performing loan ratio stood at 2.44 percent in Q1 2025, on a $27.8 billion loan book. Ratings agency Fitch, which assigns Afreximbank a ‘BBB’ rating, has warned that any ratio above 6 percent could trigger a downgrade. Moody’s currently rates the bank ‘Baa1’.
If its loans are pulled into restructuring, that could affect its creditworthiness and raise its own borrowing costs—a risk some investors are now weighing.
Despite the high rates, Afreximbank has acted as a lender of last resort for countries like Ghana. Accra agreed to pay as much as 9.55 percent interest on parts of a 2022 loan package, just before its default.
As Ghana continues to navigate complex negotiations with creditors, the fate of its Afreximbank obligations could prove decisive—not just for its economic recovery, but for its global credibility.
