Ghana’s growing energy-sector debts and the Mahama administration’s deepening engagement with Russia and China are creating new tensions with the United States, as political and legal developments at home draw scrutiny from international observers.
U.S. Companies Unpaid as Debts Mount
Ghana owes about $251 million to several U.S. companies operating in its energy and telecommunications sectors, including Kosmos Energy, Chubb Insurance, and American Tower Corporation (ATC). European companies are also reportedly facing unpaid invoices.
The issue gained international attention earlier this year when U.S. Senator Jim Risch, the ranking member of the Senate Foreign Relations Committee, criticized Ghana for servicing larger debts owed to China while falling behind on payments to U.S. firms.
“Ghana’s foreign minister should focus on honoring his government’s commitments to repay U.S. companies and the American taxpayers,” Risch wrote on social media. “We cannot keep subsidizing Ghana while it continues paying far larger debts to China.”
Ghanaian officials dismissed the criticisms, describing the U.S. debts as minor compared to historical reparations they say are owed due to slavery.
Government’s Geopolitical Realignment Raises Questions
Since returning to office, President John Mahama has adopted a foreign-policy posture that appears more aligned with China and Russia. Mahama has publicly praised the BRICS bloc and previously launched the Russian-language edition of his memoir in Moscow. Analysts say the shift marks a departure from Ghana’s historically close ties with Western governments.
Ghana became an oil and gas producer in 2010, and Western companies have played a key role in developing its offshore fields. The United States has also supported renewable energy projects in the country, including West Africa’s first hydro-solar hybrid facility.
Opposition Figures Targeted in Anti-Corruption Campaign
Domestically, the Mahama administration has launched an anti-corruption initiative known as Operation Recover All Loot (ORAL). Critics say the effort has disproportionately targeted officials from the opposition New Patriotic Party (NPP).
The most prominent case involves former finance minister Ken Ofori-Atta, who oversaw Ghana’s post-pandemic fiscal program. Ofori-Atta’s home was searched last year while he was abroad receiving medical treatment. Authorities later described him as a “fugitive from justice” and obtained an Interpol Red Notice, although no charges have been publicly disclosed.
Nearly a year after the investigation began, Ghana’s attorney general said the special prosecutor had not submitted a docket that would allow the government to formally request Ofori-Atta’s extradition from the United States.
Questions have since been raised about the circumstances under which the Interpol notice was issued, as the organization typically requires formal charges before such notices can be granted.
Chief Justice Removed, New Judges Appointed
Concerns about judicial independence intensified after President Mahama suspended and subsequently removed Ghana’s Chief Justice following petitions that have not been made public. It is the first such removal since Ghana restored constitutional rule in 1992.
Mahama has since appointed seven new Supreme Court justices, increasing his administration’s influence over the country’s highest court.
At the same time, several cases involving senior members of Mahama’s National Democratic Congress (NDC) have been discontinued. Charges against former finance minister Kwabena Duffuor, linked to the collapse of Unibank, were dropped on grounds that the case lacked public interest.
Energy Sector Pressures Add to Diplomatic Strain
Ghana owes more than $2.6 billion in accumulated energy-sector arrears, according to government estimates. Analysts say prioritizing repayment to Chinese creditors while delaying payments to U.S. and European firms risks damaging Ghana’s reputation among Western investors.
Ghana was once regarded as one of West Africa’s most stable democracies and energy success stories. But observers say the combination of geopolitical realignment, mounting debts, and political tensions is creating new uncertainty for the country’s economic and democratic trajectory.
Joseph Hammond is a journalist and former Fulbright Public Policy fellow with the government of Malawi. He has reported from four continents on topics ranging from the Arab Spring to the M23 rebellion in the Eastern Congo, with bylines in Newsweek, The Washington Post, Forbes.com, and more. He has contributed to the National Interest since 2016. Hammond has been a recipient of fellowships organized by several think tanks, including the National Endowment for Democracy, the Atlantic Council of the United States, the Heinrich Boll Stiftung North America Foundation, and the Policy Center for the New South’s Atlantic Dialogue.
