Accra: A climate finance expert and Head of the Department of Public Administration and Health at the University of Ghana Business School, Professor Albert Ahenkan, has highlighted that climate finance presents a significant opportunity for Ghanaian small and medium enterprises (SMEs) to expand and grow beyond national borders.
According to Ghana Web, although Ghana has a dedicated climate fund reportedly worth US$100 million, Professor Ahenkan noted that SMEs are currently ill-equipped to access this climate funding due to a lack of awareness and bankable projects. In an exclusive interview with Business and Financial Times in Accra, he pointed out that there is a growing pool of concessional funds and grants from multilateral institutions available for businesses that can demonstrate 'climate smartness.'
However, Ghanaian SMEs are failing to position themselves to absorb these inflows. Professor Ahenkan urged SMEs to re-engineer their business models to become 'climate smart' by incorporating climate change mitigation and adaptation practices into their operations. This, he explained, will open the gateway for cheaper, patient capital to scale, overcoming the high interest and heavy collateral demands from banks. He emphasized that once businesses are climate smart, they will be more likely to attract climate-related financing options.
The climate finance expert stressed that while traditional lending remains prohibitively expensive, green finance presents an unprecedented opportunity for local businesses. He called for awareness campaigns to sensitize the business community so they can utilize these funds effectively. Professor Ahenkan highlighted the importance of collaboration with the private sector, noting that the lack of information makes it difficult for businesses to understand the opportunities available.
He further urged the Ministry of Finance, as the custodian of the climate fund, to educate and sensitize businesses on available opportunities. He warned that without proper education and awareness, efforts to catalyze climate-related enterprises will not yield results. Professor Ahenkan pointed out that incentives exist at both the national and sub-national levels, but private sector actors are often unaware of these opportunities.
Professor Ahenkan also emphasized that access to climate funds is contingent upon the ability to present bankable projects that demonstrate measurable climate impact. He explained that funds are not disbursed arbitrarily, and access requires the presentation of climate-related proposals with clear objectives. He stressed the need for deliberate training and support to equip entrepreneurs with the technical knowledge required to access climate finance.
The academic called on the government to deepen engagement with the business community, stressing that the disconnect between policy and reality is detrimental to the economy. He urged the ministry to intensify engagement with the private sector to increase awareness about climate finance investment opportunities and available funds. He also advocated for stronger collaboration with academia to translate research into actionable enterprise support, ensuring that climate finance becomes a lever for economic growth.