Keypoints:
- $256m bilateral debt extended 15 years
- UK support to fund key road projects
- Signals confidence to other creditors
GHANA and the United Kingdom have signed a deal to restructure $256 million in bilateral debt, extending the maturity of Accra’s obligations to London by 15 years to help drive economic recovery.
The agreement was formalised on Wednesday, September 24, by British Trade Commissioner for Africa John Humphrey and Ghanaian Finance Minister Cassiel Ato Forson in Accra. It forms part of a wider initiative under the Paris Club and G20 Common Framework to help Ghana manage its debt and regain fiscal stability.
UK backs Ghana’s fiscal space
Humphrey said the pact showed London’s commitment to Ghana’s economic agenda. ‘By restructuring this debt in partnership with the Paris Club and G20, we are creating the fiscal space Ghana needs to deliver on its bold vision for the future,’ he said.
The deal allows Ghana to spread its repayments over an additional 15 years, freeing funds for domestic investment. UK officials described the arrangement as a positive signal to other creditors that Ghana’s reform path is on track.
Road projects to drive growth
Finance Minister Forson outlined plans to channel British-backed financing into road infrastructure upgrades aimed at creating jobs and stimulating trade. ‘The government of Ghana will take steps to ensure that we do what we have to do from our side, so that together we can begin the disbursement of these facilities so these projects can begin in earnest,’ he said.
Forson added that the projects would strengthen national transport links and boost economic activity, particularly in underserved regions.
Economic rebound underway
Ghana’s economy has been gradually recovering from a recent downturn that forced the country to seek help from the IMF. Forson said the UK deal would ‘send a signal to the rest of Ghana’s bilateral partners’, encouraging other creditors to finalise similar restructuring agreements.
Under the Paris Club and G20 framework, each bilateral lender is expected to sign individual accords with Ghana as part of the nation’s wider debt rationalisation strategy. The government hopes these arrangements will stabilise public finances and sustain growth.
This restructuring marks a key step in Ghana’s efforts to reduce debt vulnerabilities while unlocking capital for critical infrastructure, reinforcing confidence among investors and international partners.
