By Ernest Bako WUBONTO
The German Cooperation, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, has launched an initiative to help enhance Small- and Medium-Scale Enterprises (SMEs) build capacity and gain credibility to access green financial instruments.
The project, dubbed the Green Finance Facilitator (GFF), falls under GIZ’s Support to the Private and Financial Sector (PFS) programme and is aimed at facilitating the flow of capital into projects that drive economic growth and environmental sustainability.
It will also create jobs in critical sectors such as clean energy, sustainable agriculture and green infrastructure.
The GFF initiative, themed ‘Developing a Pipeline of Green Projects in Ghana’, is targetted at identifying green businesses and projects that are ready to upscale but need financial support to do so.
The programme offers technical assistance in preparing and packaging financing requests from businesses, ensuring that they meet financier requirements and are aligned with green finance principles.
Lead Facilitator for the GFF, Albert Boateng, highlighted that achieving Ghana’s climate goals Nationally Determined Contribution (NDCs) requires US$15billion, but only five percent is currently funded – with private finance contributing a mere 13 percent.
This gap in finance he attributed to mismatch between supply side and demand side due to poor quality of projects or proposals submitted to access the available competitive funds, hence introduction of the GFF to support SMEs build capacity through technical support.
Having identified technical assistance as a key demand of SMEs in the country, the partners will work collaboratively to improve the technical know-how and skills of these businesses to enable their access to financial sources.
He elaborated that key services the GFF will provide include cooperation with stakeholders and identifying and engaging relevant actors – and mobilising the private sector through conferences, calls for proposals, screening and matchmaking.
It will also enable access to financial institutions, provide advisory responses to specific requests for assistance and enhance the SMEs’ finance-readiness.
Cluster Coordinator of the Network for Inclusive Economic Development-GIZ Ghana, Wilhelm Hugo, emphasised that the role of GIZ in this programme is to serve as a matchmaker, or the bridge, connecting qualified businesses with financial institutions. Essentially, developing a pipeline of investable and bankable green projects.
“The Green Finance Facilitator (GFF), aims to bridge this gap by matching financiers with businesses. Hence, our desire to create a pipeline of investment-ready projects that will accelerate green investments in Ghana,” he said.
Mr. Hugo also took the opportunity to initiate a call to action, urging financial institutions to seize the chance of partnering with viable businesses that are ready to embrace sustainable practices while delivering tangible returns.
“GFF will support you by curating a pipeline of credible, green projects that align with your sustainability goals and investment criteria; offering you a chance to grow your green portfolio,” he stressed.
Head-Climate Finance Division, Ministry of Finance, Phyllis Adwoa Fraikue, on her part touted the initiative as a critical one that will support the country in its transition to low carbon emissions status.
She added that it will complement government’s various existing green finance and renewable energy funding programmes.
