Ghana’s ability to sustain economic growth could be jeopardized if the country fails to access funding from the U.S. Millennium Challenge Corporation (MCC), according to economist and private legal practitioner Daniel Anim-Prempeh, Esq.
Speaking in an interview with ABC News GH, Mr. Anim-Prempeh warned that “our inability to accept this fund could affect other sectors of the economy.”
He stressed that the government has taken steps toward debt restructuring and that these efforts, combined with ongoing reforms, could be used to convince MCC to release the funding.
He added, “Investors are willing to do business with Ghana, but not as usual. They may demand a higher interest rate because of the risk associated with our current status. To me, that will be the only challenge.”
According to Anim-Prempeh, Ghana is “on the right track when it comes to debt restructuring from 2024 till date,” and continued progress in this area could help restore confidence among international partners and investors.
The warning comes against the backdrop of the Millennium Challenge Corporation’s Candidate Country Report, which indicates that Ghana is currently unable to access MCC funds due to a debt default restriction.
This restriction remains in place until the government reaches a restructuring agreement with its creditors.
Analysts have noted that missing out on this funding could undermine projects in key sectors such as energy, trade, and infrastructure, while also weakening investor confidence and slowing economic growth.
Experts, however, say all hope is not lost. Ghana can still mobilize resources through domestic revenue collection, further debt restructuring, partnerships with the private sector, and strategic utilization of natural resources, including gold, oil, and lithium.
The pressure now rests on the government to conclude debt negotiations swiftly to regain access to international support and ensure the continued development of the economy.
