The Ghana Microfinance Institutions Network (GHAMFIN), together with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has set up a Climate Finance Knowledge Hub (CFKH) to solicit innovative ideas needed to finance green projects in order to protect the climate.

The Climate Finance Knowledge hub launch event took place in Accra under the theme “Climate Finance Knowledge Hub - Enhancing Climate Finance for MSME Growth in Ghana”.

Through the knowledge hub, which was mooted in 2019, Microfinance Institutions (MFIs) and climate-smart enterprises now have access to a comprehensive e-learning platform that provides specialised training, certification, and technical expertise in climate finance. In addition, CFKH has an extensive online directory that connects users to a global network of recognised climate and green finance groups and companies, enabling collaboration.

The platform also facilitates access to climate funds and simplifies the process of securing financing options for green projects - with features such as value chain analysis, risk assessment, institutional certification, and detailed reporting.

Dr. Christian Jahn, Head of GIZ Ghana's Private and Financial Sector Support Programme (PFS), who officially launched the Hub, said in his speech "As an organization strongly committed to sustainable development, we are proud to partner with GHAMFIN in the development and launching of this Climate Finance Knowledge Hub. This initiative represents an important milestone in our joint efforts to drive climate resilience and innovation in Ghana's financial sector."

He added that this hub will place the power of climate-smart financial solutions in the hands of businesses and institutions, offering a comprehensive and user-friendly experience.

Dr. Jahn further added that the impact of this initiative is expected to be profound. The knowledge to be acquired through this learning platform has the potential to offer financial institutions a grounded capacity to effectively conduct detailed value chain analysis and risk assessment of MSMEs businesses to make strategic and data-driven decisions when approving credit facilities for climate-smart businesses.

“To this end, the CFKH can be touted as a sure pillar in the promotion of sustainable financial practices to driving climate innovation forward,” he remarked.

 An opportunity for microfinance institutions and MSMEs

Representatives from the Ministry of Finance, the Ministry of Environment, Science, Technology and Innovation, the Ministry of Trade and Industry, the Development Bank Ghana and the Centre for Climate Change and Sustainability Studies at the University of Ghana were joined by the Deputy Chief Executive Officer of the Development Bank Ghana, Michael Mensah.

He explained "The Climate Finance Knowledge Hub is an important resource for Ghanaian microfinance institutions and MSMEs. It enables them to navigate the complexities of climate finance. We are convinced that this platform will drive sustainable growth and help create a more resilient and environmentally conscious business landscape in our country".

The Deputy DG also announced that DBG is partnering with Ghana Enterprise Agency to support female entrepreneurs through providing customised capacity building for women led businesses.

“We are also focusing on supporting youth entrepreneurs, there is enormous potential here. Estimates from the Ghana Statistical Service (GSS) suggest that about 1.55 million adults (15 years and above) were unemployed in 2021, 74 percent of them defined as “young”. The well-being of our youth would be significantly impacted if they continue to remain unemployed,” he added.

All stakeholders are confident that this initiative will encourage investment in climate-friendly projects, drive innovation and create a skilled labour force committed to sustainability and resilience. Ghana's international reputation will rise as a result and doors will open for new markets and business models.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is implementing the Programme for the Promotion of the Private and Financial Sector (PFS) on behalf of the German Federal Ministry for Economic Cooperation and Development. PFS aims to improve employment opportunities for Micro, small and medium sized businesses in Ghana. This is in line with the BMZ's focus on a just transition in climate efforts.