Ghana has been declared ineligible for United States foreign assistance under the Millennium Challenge Compact (MCC) for the 2026 Fiscal Year. According to the Millennium Challenge Corporation’s Candidate Country Report, the decision is based on legal prohibitions related to Ghana’s debt situation.
Specifically, the country is currently restricted under Section 7012 of the FY 2025 State, Foreign Operations, and Related Programs (SFOAA), often referred to as the “debt default restriction.”
This restriction applies to countries that have defaulted on debt obligations to the U.S. government or are in a protracted period without a finalized debt restructuring agreement.
While Ghana remains on the list of countries that would otherwise qualify as candidates based on income levels, the legal prohibition against U.S. economic assistance, effective as of August 6, 2025, prevents any new compacts from being signed until the debt issues are resolved.
Ghana is part of a group of 18 nations currently excluded from receiving this specific category of American economic aid. Other countries facing similar ineligibility for the 2026 cycle include:
- Burkina Faso
- Zimbabwe
- Sri Lanka
- Burma
- North Korea
- Venezuela
The report indicates that these statuses are not permanent and could be updated if a country’s circumstances change – specifically, if Ghana successfully finalizes its debt restructuring agreements with bilateral and commercial creditors.
This development serves as a reminder of the broader diplomatic and financial consequences of the nation’s ongoing debt management challenges under its IMF-supported recovery program.