Introduction of a Green Credit Line 

  • Client

    KfW

  • Year

    2024-2025

  • Region
    • Sub-Saharan Africa
  • Service
    • Capacity Building
  • Countries

    Ghana

  • Sectors
    • Commercial and Residential
    • Financial institutions
    • Micro, Small & Medium Enterprises (MSMEs)

The purpose of this assignment was to provide, through partner financial institutions (PFIs), USD 25 million in medium and long-term loans to small and medium enterprises and households (both of which are end-beneficiaries) for private investments in renewable energy (RE) and energy efficiency (EE) measures. The funds were intended to contribute to the development of a sustainable green finance market in Ghana as one of the preconditions for promoting RE and EE markets for which there is substantial potential in Ghana.

The USD 25 million credit line was supposed to be launched in 2026; however, the launch was cancelled because of Ghana’s debt exposure that limited any additional loans to the country.

Econoler worked in 2025 on preparing the launch of the green credit line in preparation for the expected launch in 2026. The tasks of Econoler under this assignment were to:

  • Onboard PFIs and prepare project portfolios:

  • Develop an operations manual for the credit line.

  • Develop communication tools/marketing efforts to promote the green credit line and support the business development of PFIs:

  • Develop communication tools/marketing efforts to promote the credit line;

  • Mobilize PFIs as well as local technical and economic experts.

  • Build capacity and transfer knowledge:

  • Develop training modules on green project financing for PFIs;

  • Coordinate with other projects and engage in policy dialogue;

  • Transfer capacity through teamwork to Ghana Energy Commission staff.

If it had been launched, the green credit line would have contributed to the operationalization of the Ghana Sustainable Banking Principles – Environmental and Social Risk Management Guidelines launched by the Bank of Ghana to strengthen sustainable lending opportunities and practices in the country. It was also developed to support the achievement of Ghana’s National Financial Inclusion Strategy by supporting PFIs in developing, piloting, and launching green finance products adapted to the needs of underserved customers.