In a move that underscores mounting financial pressure on the country, the United States government has officially declared that Ghana will be ineligible to receive foreign assistance, including grants and development loans, in fiscal year 2026.
The decision, triggered by Ghana’s failure to meet certain debt obligations, stems from the application of Millennium Challenge Corporation (MCC) regulations under FY 2025 State, Foreign Operations, and Related Programs Appropriations Act. Under Section 7012 of the law, any country that has defaulted on sovereign debt owed to or guaranteed by U.S. persons, and has not yet concluded a restructuring agreement, is barred from receiving U.S. economic assistance.
According to the latest MCC Candidate Country Report, Ghana, despite meeting income and developmental thresholds, was disqualified purely on legal grounds. The country remains among 18 nations identified as ineligible for assistance for 2026 under U.S. law.
For Ghana, the consequences are significant. Over the years, U.S.-backed assistance has supported infrastructure, agriculture, energy projects and other development programmes, many of which targeted sectors vital for economic recovery and social welfare. By being excluded from MCC funds and other U.S. aid programmes, Ghana may now face delays or cancellation of planned projects, potentially deepening fiscal pressures amid ongoing domestic challenges.