Ghana Races to Settle Debts Owed U.S. Firms

Ghana is racing to settle outstanding debts owed American companies working in Ghana, in a bid to safeguard bilateral relations and protect broader investor confidence in its economy.

The Ghanaian government has assured U.S. officials that steps are underway to clear the arrears, following mounting pressure from American lawmakers who have warned that further IMF disbursements could be jeopardized unless Ghana honours its financial obligations to U.S. firms.

The assurance came during a high-level visit to Washington, D.C., by Ghana’s Minister for Trade, Industry and Agribusiness, Elizabeth Ofosu-Adjare, as part of broader efforts to strengthen bilateral trade relations and lobby for the renewal of the African Growth and Opportunity Act (AGOA), which expires in September 2025.

It will be recalled that two U.S. Senators early this year, warned that continued support for Ghana through its programme with the Bretton Woods lender could be jeopardized if American businesses in Ghana were not paid for goods and services rendered.

In April 2025, Chairman of the United States House Foreign Affairs Committee, Brian Mast called for a portion of Ghana’s next IMF disbursement to be directly allocated to settling outstanding debts owed to Independent Power Producers (IPPs), including facilities partly owned by U.S. pension funds and taxpayers. Chairman Mast expressed concern over what he described as Ghana’s continued failure to honor financial commitments under its ongoing IMF-supported programme. 

Earlier in January 2025, ranking member of the US Senate Committee on Foreign Relations, Senator James E. Risch called on Ghana to prioritise the repayment of debts owed to American companies before seeking additional financial assistance from the IMF. He argued that granting Ghana additional IMF support without settling the debts could negatively impact U.S. companies abroad and set a bad precedent for other countries with similar debt issues.

Minister Ofosu-Adjare during her engagements disclosed that the Ministry of Finance was actively working to resolve the delayed payments.

“We understand the concerns of our U.S. partners, and I want to assure you that the government is committed to honoring its obligations. These companies are vital to our economy, and we are taking steps to clear all arrears,” she said.

Her comments come amid a more protectionist trade stance under U.S. President Donald Trump’s second term, which has seen the imposition of a 10% blanket tariff on imports from several countries, including Ghana. The tariff move has added urgency to Ghana’s push for the renewal of AGOA, a preferential trade agreement that grants duty-free access to over 1,800 products from sub-Saharan Africa.

In discussions with Thomas Bruns of the U.S. Department of Commerce and Giancarlo Cavallo of the President’s Advisory Council on Doing Business in Africa, Minister Ofosu-Adjare made a strong case for AGOA’s renewal, stressing its importance in driving Ghana’s non-traditional exports, especially textiles, cashew, gold jewellery, cocoa derivatives, and shea butter.

“AGOA has created thousands of jobs in Ghana and provided high-quality, affordable products to the U.S. market. It’s a mutually beneficial framework that should be strengthened, not abandoned,” she argued.

Beyond AGOA, the Minister also addressed U.S. concerns about Ghana’s local content laws, which some American mining firms argue are restrictive. She reiterated Ghana’s commitment to maintaining a balanced regulatory environment that encourages foreign investment while safeguarding local participation in the economy.

Further topics discussed included the regulation of over-aged vehicle and excavator imports from the U.S., with both delegations agreeing on the need for clearer rules and improved environmental oversight.

A key outcome of the trip was an agreement to reactivate the U.S.-Ghana Trade and Investment Framework Agreement (TIFA), a bilateral platform to resolve trade issues and deepen commercial cooperation.

Minister Ofosu-Adjare was joined by Ghana’s Acting Head of Mission to the U.S., Ambassador Jane Gasu Aheto; Dr. Mary Awusi, CEO of the Ghana Free Zones Authority; and Abdul Razak, Deputy CEO of the Ghana Investment Promotion Centre.

Bilateral trade between the two countries reached $2.1 billion in 2024, with Ghana recording a $233 million trade surplus. But the recent shift in U.S. trade policy and growing scrutiny of Ghana’s financial obligations to foreign businesses have underscored the need for the country to reinforce strategic alliances and explore new markets through platforms such as the African Continental Free Trade Area (AfCFTA).

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