Ghana Becomes Latest Global South Country to Default on Debt

Ghanaian Finance Minister Ken Ofori-Atta addressing the country's recent default on its foreign debt obligations in a Facebook Live video on December 19, 2022.

Ghana announced it will suspend payments on most of its debt to bondholders, other commercial lenders, and foreign governments, officially putting it in default. The announcement comes a week after a staff-level meeting with the IMF and a ratings downgrade. Ghana’s economy is spiraling, with 70%-100% of government revenue going to debt servicing and domestic inflation hitting 50%, triggering protests.

Out of its $28.4 billion external debt, $1.9 billion is owed to China, only about 6.7%. In contrast, Eurobond debt makes up 46.1% ($13.1 billion.) Bondholders said the relatively small share of Chinese debt will likely smooth the debt restructuring process, in contrast to countries like Zambia. 

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.