By Anita Ofori,
As the world pivots toward sustainability, Ghana is taking bold steps to transition to a net-zero emissions economy by 2070.
The National Energy Transition Framework is a blueprint for economic transformation. For businesses and financial stakeholders, this journey represents unparalleled opportunities.
Imagine a Ghana where electricity is universal, powered by clean energy sources like solar, wind, and nuclear. Renewable energy, set to contribute 20% of electricity capacity by 2070, will redefine our energy landscape. Investments in these sectors are expected to drive electricity sales to a staggering $140 billion, equivalent to 16% of the nation’s GDP.
For businesses, this means a thriving market for green energy technologies, from solar panels to electric vehicle (EV) charging stations.
The transition is not without its challenges, especially for industries entrenched in fossil fuels. But where there’s disruption, there’s also opportunity. As the world moves away from fossil fuels, Ghana’s focus on critical minerals like lithium and graphite positions it as a key player in the global green economy. Exporting these minerals and investing in battery technologies and Electric Vehicle (EV) manufacturing can create new revenue streams for businesses and the nation alike.
For financial institutions, this is a moment to lead. The $562 billion cost of the transition calls for innovative financing solutions. Public-private partnerships, green loans, and sustainability-linked bonds can catalyze investment in renewable energy projects and infrastructure. Financial institutions can play a critical role by offering tailored products for businesses adopting energy-efficient technologies or venturing into clean energy markets.
The human story is equally compelling. With over 1.4 million new jobs expected, particularly in clean energy and construction, this transition promises a brighter future for Ghana’s workforce. Improved access to electricity and clean cooking fuels will save women and children millions of hours spent gathering firewood, empowering them to pursue education and economic opportunities.
Ghana’s energy transition is a movement that blends sustainability with economic growth. Embracing this vision will not only allow businesses and financial stakeholders to contribute to a greener future but also unlock unprecedented opportunities for growth and innovation.
The question is not whether to act but how quickly we can move to seize these opportunities, and empower Ghana’s future together.
The writer is the Relationship Manager, Absa Bank Ghana LTD
