CalBank Ghana, one of the indigenous banks in the Republic of Ghana, in partnership with the European Union (EU), has set a Green Energy Financing scheme with a seed capital running into several millions of dollars to support corporate bodies, Small and Medium Scale Enterprises (SMEs) and individuals who want to invest in green energy.
The scheme supports Renewable Energy Projects and Energy Efficiency Projects which lead to 20 percent energy savings and initiatives aimed at sustainable use of natural resources.
According to the bank, these projects must be implemented in Ghana before it could qualify for support.
Speaking during a virtual stakeholder dialogue on the best options in providing financial support for renewable energy investment and adoption by SMEs in the country, organised by ACEP, in partnership with the German Development Cooperation (GIZ), Abraham Dsane of the Corporate Relations Department of CalBank, mentioned that for corporate customers, a maximum of $8 million has been set aside, while that for SME customers and individuals have been pegged at $2 million and $50,000.
He noted that there exists many funding opportunities for businesses to tap into if they want to go green.
Among the funding options available to businesses, he said there is a US$11.4 million Africa Climate Change Fund and Africa Green Fund administered by the African Development Bank and the Sustainable Use of Natural Resources and Energy Fund which, he said US$20 million has been made available to CalBank for onward lending to companies and individuals that want to invest in renewable energy.
Others include the Nordic Development Fund, the Global Environment Facility of which the country has received over US$100 million, and the Green Climate Fund, among others.
“Renewable energy is important in our world today because of the advantages it comes with, so financial institutions in the country are increasingly committing more resources and efforts to support businesses and individuals that want to invest in renewables,” he added.
Themed ‘Financing options for renewable energy adoption by SMEs in Ghana’, the stakeholder dialogue formed part of efforts to enhance affordable renewable energy through interventions that will explore opportunities for renewable energy adoption by SMEs.