The country’s potential for sustainable industrialization depends largely on its capability to draw in climate-focused investment and establish Environmental, Social, and Governance (ESG) criteria within institutions, stated financial experts and policy promoters during a top-tier seminar on green financing conducted in Accra.
Organized jointly by the Africa-China Centre for Policy and Advisory (ACCPA) and the Sino-Africa Green Finance Alliance (SAGFA), this gathering assembled key players from governmental bodies, financial institutions, investment firms, and developmental organizations. The purpose was to explore strategies enabling Ghana to access green financing for fostering environmentally friendly industrial expansion.
Speakers cautioned that although the nation’s industrial goals are well-defined, the lack of environmental, social, and governance (ESG) compliant financial structures and restricted availability of eco-friendly funding continue to be significant obstacles.
“Green financing isn’t an act of philanthropy; rather, it’s centered around opportunities, competitive edge, and generating lasting value. We must establish a financial framework where sustainability-focused actions are incentivized instead of merely penalizing those practices deemed environmentally unfriendly,” stated Paul Frimpong, who serves as the Executive Director at the Africa-China Centre for Policy and Advisory.
The Climate Policy Initiative reports that global climate finance reached $1.3 trillion in 2021-22, yet Africa secured under three percent of this total. In Ghana, where there’s a push for industrial development via key areas like renewable energy, food processing, and manufacturing, accessing green funds is essential.
“ESG needs to be a key strategic component for companies in Ghana—rather than something they consider only after the fact. Businesses that adhere to ESG principles will gain a competitive advantage when entering international markets and securing funds,” Mr. Frimpong emphasized.
The workshop included valuable input from experienced market experts, notably during a plenary session called ‘Moving Toward Green Industrialization in Ghana: Insights’.
Leveraging insights from policy practices, real-world business scenarios, and sustainable development models, the participants highlighted the importance of collaboration across different sectors and significant structural changes to ensure that environmentally friendly industrialization becomes both feasible and expandable.
“Ghana’s green industrialisation must be built on a foundation of policy consistency, accessible finance, and intentional investment in renewable technologies,”Charles Ofori, Policy Lead for Climate Change and Energy Transition at the Africa Centre for Energy Policy (ACEP), noted.
Abena K. Baidoo, Head of ESG at CalBank, stated that Ghanaian banks were beginning to adopt ESG screening tools but needed broader regulatory clarity and technical support.
“Green industrialization is not only crucial for the environment but also essential for businesses. Companies must integrate sustainability into their financial goals to ensure long-term development and effectiveness,” she emphasized.
Ebenezer Asumang, a sustainability consultant and ESG specialist, emphasized the significance of ESG principles, pointing out that sustainable industrialization can boost resilience and competitive edge in the marketplace.
“He noted that businesses incorporating ESG criteria do more than just draw investments; they shape the future.”
The participants looked into major obstacles to green financing in Ghana, which include elevated interest rates, insufficient data on sustainable performance, and inadequate institutional collaboration. Various discussion groups delved into novel approaches like green bonds, mixed funding strategies, and subsidized loans designed for environmentally friendly projects.
Mr. Frimpong stressed the significance of synchronizing Ghana’s financial sector with international sustainability standards.
He also called on the government to provide clear policy signals, including fiscal incentives and regulatory reforms, to boost investor confidence in Ghana’s green economy.
The workshop was held under the auspices of the Sino-Africa Green Finance Alliance, a platform supported by Chinese and African institutions to foster south-south cooperation in sustainable finance.
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