Ghana declared ineligible for U.S. MCC aid over debt default

Ghana has been officially declared ineligible to receive financial assistance from the U.S. Millennium Challenge Corporation (MCC) for the 2026 fiscal year due to ongoing debt challenges.

This decision was outlined in the MCC’s Candidate Country Report, submitted to the U.S. Congress.

The report identifies countries eligible for MCC development compacts and lists those disqualified under U.S. law.

According to the report, Ghana’s disqualification stems from a debt default restriction enforced by Section 7012 of the U.S. Fiscal Year 2025 Appropriations Act.

The provision bars countries from receiving U.S. foreign aid while they are in default and awaiting a debt restructuring agreement.

“Ghana is ineligible to receive foreign assistance pursuant to the debt default restriction pending a debt restructuring agreement,” the report stated.

The MCC, a U.S. government agency, offers large-scale grants to countries that demonstrate a strong commitment to democratic governance, economic freedom, and investment in their citizens.

In addition to meeting performance indicators and income thresholds, eligible countries must also comply with U.S. legal standards.

For fiscal year 2026, more than 80 countries, including Kenya, Côte d’Ivoire, and Senegal, were identified as eligible or potential candidates.

Ghana, however, was among 18 countries barred from consideration due to legal restrictions, which also include cases involving military takeovers, severe human rights abuses, or economic sanctions.

The report notes that these legal and financial conditions are not permanent. Ghana’s eligibility could be restored in future cycles if the country successfully restructures its debt and regains compliance with U.S. legal requirements.