- Ghana’s green business sector is growing fast. But governance gaps and market limits hold back scaling. Only about 20% of businesses are truly “green.” Renewables, waste recycling, and climate-smart agriculture offer big opportunities.
- Climate change is hurting Ghana’s economy. Droughts in the North caused a 0.7 to 1.5 percent GDP loss in 2024. The government paid GHC 8 billion in compensation to affected farmers, putting pressure on finances.
- Progress stalls due to fragmented policies. Ghana lacks a unified decarbonization plan. Overlapping frameworks and inconsistent laws cause confusion and slow action.
- Climate laws are weak. They don’t enforce emissions cuts or require private sector action. Kenya and South Africa have stronger legal frameworks, which attract more investors.
- Costs are high for green businesses. Lending rates are around 30% and inflation hits 23.1%. Currency depreciation adds to operational expenses.
- Environmental taxes are poorly targeted. Funds go to general revenue, not climate innovation. Solar projects face high taxes, up to 11% of costs, undermining incentives.
- There’s a big skills gap. Most workers (73%) are low-skilled, and only 3% have technical training. Education favors humanities (68%) over STEM (12%), misaligned with green jobs.
- Infrastructure is lacking. Fossil fuels provide 70% of energy, renewables just 3.1%. Poor roads and unreliable electricity hinder green businesses.
- Public awareness is low. This limits demand for green products. Without certification systems, greenwashing risks rise.
- Key reforms are needed. Ghana must pass a strong climate law with binding targets. Policies should be unified under a Long-Term Decarbonization Strategy. Green taxes should fund innovation. Education must focus more on green skills. Civil society should be involved for accountability.
So What?
Ghana’s green sector has great potential. But smart policies, funding, and skills development are vital for sustainable growth.
