Ghana unveils ambitious climate finance plans at COP29

goldcoastnewsline@gmail.com

November 14, 2024
0 Comments

The Director of Climate Financing Division at the Ministry of Finance, Phyllis Adwoa Fraikue, has outlined the country’s bold initiatives to mobilize climate finance amid global economic challenges during a “Finance Day” side event at the ongoing COP29 in Baku, Azerbaijan.

The event, themed “Collaborative Pathways to Green Growth: Revolutionizing Climate Finance in a World of Fiscal Challenges,” highlighted the urgent need for climate-resilient development, particularly in the wake of the COVID-19 pandemic.

In her address, Mrs. Fraikue underscored Ghana’s commitment to addressing climate risks while maintaining fiscal responsibility.

She spotlighted the newly established Climate Financing Division, which is pivotal to the country’s Climate Prosperity Plan. This initiative, she explained, aligned with Ghana’s national development goals with global climate objectives, while attracting both public and private investment for sustainable, green growth.

“Our aim is to unlock private capital for low-carbon development and to minimize the national debt burden,” Mrs. Fraikue noted, emphasizing the importance of clear sector-based incentives to achieve these goals.

Recognizing Ghana’s ongoing fiscal challenges, exacerbated by global economic disruptions since 2022, she highlighted the importance of innovative financial mechanisms such as debt-for-climate and debt-for-nature swaps.

The occasion was used to showcase the Finance Ministry’s new Ghana Green Finance Taxonomy, a framework designed to direct funding to environmentally responsible projects, making Ghana a regional leader in sustainable finance.

Through these tools and sector-based incentives, Ghana aims to unlock private capital for low-carbon development, minimizing the national debt burden.

Mrs. Fraikue concluded with a call for robust partnerships, stronger transparency, and accountability in climate finance to safeguard both natural and physical assets.

“Let us seize this moment to foster collaboration, leverage innovation, and build a sustainable future for all,” she urged.

She said, the Ministry of Finance has been actively engaging stakeholders for stronger financial and technical partnerships in line with the Nationally Determined Contributions.

This event showcased Ghana’s commitment to mobilizing climate finance resources, as well as its collaborative approach to strengthening resilience and advancing sustainable development.

The COP29 Finance Day event is expected to catalyze further discussions on innovative financial solutions and the future of climate finance amid global fiscal constraints.

goldcoastnewsline@gmail.com

Business News

goldcoastnewsline@gmail.com
December 3, 2024
0 Comments
2 minutes Read

IMF approves $360m for Ghana after third review

The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of $360 million to Ghana under its $3 billion Extended Credit Facility (ECF).

This follows the successful completion of Ghana’s third review under the program, as announced on Monday, December 2, 2024.

The latest disbursement brings Ghana’s total receipts from the ECF to $1.92 billion. The funds are expected to be credited to the Bank of Ghana by the end of the week.

“Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off. Good progress has been made on debt restructuring. Growth is recovering rapidly, inflation has declined—although at a slower pace, and the fiscal and external positions have continued to improve”, the IMF said in a release.

The statement added that the “Ghanaian authorities have continued to make remarkable headways on their public debt restructuring. After successfully restructuring domestic debt last year and reaching an agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June 2024, the government has completed the exchange of its Eurobonds at conditions consistent with program parameters.

“The authorities have also intensified engagement with their remaining external commercial creditors on a restructuring in line with program parameters and comparability of treatment.

“The Bank of Ghana (BoG) has maintained a prudent monetary policy stance to sustain a continued reduction in inflation against heightened risks and has taken important steps to rebuild international reserves.

“The BoG has also appropriately strengthened measures to buttress financial sector stability by intensifying actions to promote timely recapitalization and steps to sustain the viability of banks. The government has started recapitalizing state-owned banks consistent with available resources.”

Business News

goldcoastnewsline@gmail.com
November 27, 2024
0 Comments
3 minutes Read

DBG, AGI collaborate to revitalise Ghana’s textiles and garments industry

Development Bank Ghana (DBG) has signed a Memorandum of Understanding (MoU) with the Association of Ghana Industries (AGI) as part of its mandate to accelerate the growth of key sectors of Ghana’s economy.

The collaboration aims to strengthen the textiles and garments industry by supporting local businesses to scale production, improve competitiveness, and create jobs.

Per the agreement, DBG will partner with AGI to implement a three-year initiative that provides technical support, financial resources, and market development assistance to selected textile, garment, and fintech companies.

The initiative will help address key industry challenges, such as high production costs, limited skilled labour, and access to long-term financing.

Speaking at the signing ceremony, the Chief Executive Officer of DBG, Kwamina Bentsi Enchill Duker, said the commitment of his outfit towards the textiles and garments industry aligns with our strategic focus on manufacturing as a priority sector for development.

“This collaboration with AGI provides an opportunity to support the sector’s growth, leveraging global trade opportunities such as AfCFTA and AGOA. Our combined efforts will help local businesses overcome barriers, increase production capacity, and tap into new markets, ultimately strengthening Ghana’s economy,” he added.

He announced that DBG will invest an initial GHC566,200.00 in dedicated financial support to AGI to execute a range of activities during the program.

These activities include identifying at least three investable projects within the textile and apparel value chain, technical assistance, market development, capacity-building sessions, and regular monitoring and evaluation to assess the intervention’s impact.

Mr Kwamina Duker further announced that DBG, in collaboration with Partner Financial Institutions (PFIs) and Development Partners (DPs) aims to invest at least GHC100 million annually through long-term financing over the next three years in Ghana’s textile and garments industry.

Additionally, through its Guarantee subsidiary, DBG Guarantee (DBGG), DBG seeks to catalyse and unlock significant financing for the sector by providing partial credit guarantees, enabling businesses to invest in growth and expand their operations.

In his address, Dr. Humphrey Kwesi Ayim Darke, President of AGI, intimated that by facilitating access to funding and critical technical resources, DBG is addressing the unique challenges faced by local textile and garment companies.

“This partnership will empower businesses to improve their operational efficiency, create jobs, and gain access to both local and international markets,” he said.

Also speaking at the event, Prof. Eric Osei-Assibey, Chief Economist Designate at DBG, said the textile and garment sector has immense potential to contribute significantly to Ghana’s economic growth.

“Through this partnership with AGI, DBG is committed to bridging the financial and technical gaps that have hindered the sector’s growth,” he said.

He further pointed out that the industry has opportunities to transition towards sustainable manufacturing and circularity, particularly in recycling textile waste and adopting eco-friendly production practices.

“Therefore, emphasis will be placed on integrating sustainable practices, ensuring that the sector grows responsibly and contributes to environmental preservation,” Prof.Osei-Assibey said.

The programme is expected to enhance beneficiary companies’ competitiveness and operational efficiency, drive job creation and economic empowerment within the textile and garment sector and expand market linkages, boosting Ghana’s export potential.

The partnership between DBG and AGI is a vital step towards revitalising the textiles and garments industry, paving the way for long-term economic growth and sustainability.

Source: myjoyonline.com