Accra: Mr. Peter Aidoo, Economist and Development Coordinating Officer at the UN Resident Coordinator’s Office, has called for investment in food systems to spur growth and close the financing gap in the country. He emphasized the need for regular private sector engagement, including financial institutions, to institutionalize their participation in governance for sustainable development. This call was made during a Business Executives dialogue for members of the UN Global Compact in Accra.
According to Ghana News Agency, the dialogue aimed to discuss the sustainable finance landscape in Ghana, opportunities for the private sector, and challenges that may exist. The event was themed ‘Financing Ghana’s Sustainable Future and Strengthening Private Sector Contribution to the Voluntary National Review process’. Mr. Aidoo highlighted a 2023 agreement by the General Assembly of the UN, urging all developing countries to review policy and regulatory frameworks to enhance the enabling environment and accelerate progress in the Sustainable Development Goals (SDGs). Ghana, he noted, needs to raise $43 billion annually before 2030 to meet these goals.
Mr. Aidoo expressed satisfaction with the government’s commitment to the International Monetary Fund, which includes strengthening procurement processes and canceling the e-levy to incentivize private sector growth. He also noted the reduction in USAID funding to Ghana, now about GH? 156 million, which necessitates innovative funding approaches to address the financial gap. Additionally, he raised concerns about Ghana’s annual loss of $1.44 billion through financial leakages, while the country seeks just $3 billion from the IMF.
Mr. Foster Aboagye Gyamfi, Principal Economics Officer at the Climate Finance Division of the Ministry of Finance, stressed the importance of investing in the private sector to accelerate development. He cautioned against over-reliance on donor countries for financial aid, pointing out the availability of climate financing instruments such as grants, concessional financing, carbon financing, and sustainable green bonds. Mr. Gyamfi encouraged organizations and financial institutions to engage with the Ministry of Finance to leverage climate financing to enhance their business portfolios.
He also mentioned that the Green Climate Fund is the largest international climate finance fund supporting Ghana, with an $8 billion replenishment for 2020-2023. The Fund collaborates with developed countries and the business sector to mobilize institutional investors at scale to finance climate actions.