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Why Ghana Has Been Excluded From US Millennium Challenge List For 2026

Ghana has been excluded from the United States Millennium Challenge Corporation’s (MCC) list of candidate countries for the 2026 fiscal year.

According to the MCC Candidate Country Report for Fiscal Year 2026, released in Washington in August 2025, Ghana is ineligible to receive U.S. foreign assistance under section 7012 of the Fiscal Year 2025 State, Foreign Operations and Related Programs Appropriations Act.

The restriction applies to countries in debt arrears until they reach a restructuring agreement with creditors.

The MCC explained that while Ghana met the income threshold for consideration, the legal prohibition automatically disqualified the country from compact eligibility because of debt default.

Ghana has previously benefitted from two MCC compacts.

The first compact, signed in 2006, provided US$547 million over five years to support agriculture, transport and rural development. It funded the construction and rehabilitation of over 350 kilometres of roads, trained about 67,000 farmers through 1,200 farmer-based organisations, expanded irrigation, and built 250 three-classroom school blocks across the country.

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The second compact, signed in 2014 and valued at US$498 million, focused on power sector reform and infrastructure. Projects included the construction of the Pokuase and Kasoa bulk supply points in Accra, two primary substations, and upgrades to the Electricity Company of Ghana’s systems.

It also installed more than 14,000 energy-efficient streetlights and introduced programmes to promote women in the energy sector.

Ghana, however, forfeited US$190 million of the package in 2019 after government cancelled a concession agreement tied to reforms in electricity distribution, reducing total disbursement to about US$316 million.

Other African countries, including Burkina Faso, Mali and Niger, have also been barred, but on grounds of military takeovers. Zimbabwe was excluded for rule-of-law concerns.

Ghana’s case, however, is tied directly to its financial arrears, underscoring the urgency of ongoing debt restructuring talks.

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Source: graphic.com.gh

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