On the sidelines of Nana Addo Akuffo-Addo’s visit to France and as part of the France-Ghana Investment Forum in Paris, a Memorandum of Understanding (MoU) and two credit facilities have been signed between the two countries.
The MoU was signed between Ghana, represented by the Minister of Foreign Affairs and Regional Integration, Mrs. Shirley Ayorkor Botchwey, and France, represented by Expertise France’s Director, M. Jérémie Pellet and AFD’s Director for Africa, Mrs. Rima Le Coguic. And the two financial agreements were signed with CalBank, represented by its Managing Director, Mr. Frank Adu.
The MoU is related to the Adapt’Action facility, whose objective is to enable Ghana to consolidate its climate governance, leading to the successful implementation of its Nationally Determined Contributions (GH-NDCs) through capacity-building activities; translate these GH-NDCs into sectoral public policies and action plans in the field of adaptation; and design structured and transformational climate programmes and projects, with a focus on adaptation to climate change impacts.
Operational over a 4-year period (2017 – 2021), the €30million facility from AFD is aimed at supporting 15 partner-countries and regional organisations. This is in response to the desire clearly indicated by many developing countries to benefit from technical and financial support in the concrete implementation of their NDCs and achievement of their climate objectives. Implementation of the capacity building component of this facility is delegated to Expertise France.
The first agreement with CalBank is a credit line facility of €17m (around US$19m), which will allow the bank to provide green credit loans to finance small and medium enterprises in Ghana – for renewable energy and energy-efficiency projects. The second agreement is a grant agreement of €1.4m to benefit clients of the bank who are eligible under the programme.
These two agreements with CalBank form part of the Sustainable Use of Natural Resources and Energy Finance (SUNREF) programme in Ghana.
SUNREF, which is AFD’s green financing label worldwide, is a comprehensive progamme that comprises three pillars in Ghana:
- Credit lines financed by AFD, up to €30million with local banks;
- A technical assistance facility with support from the European Union Africa Infrastructure Trust Fund (EU-AITF) of €2million; and
- An investment grant scheme also funded by the EU-AITF of €2.4million to provide additional incentives to green investments.
Cal Bank is the first bank to participate in this programme which will take-off in the coming months. The outcome of the project is meant to increase the share of renewable energy in the overall energy mix, and consequently contribute to the reduction of CO2 emissions.