Ghana’s ambition to invest US$10.8 billion in renewable energy over the next five years could be undermined by financing and procurement conditions that make it difficult for local businesses to secure contracts, the Strategic Youth Network for Development (SYND) Ghana has warned.
The organisation says young Ghanaian renewable energy companies are ready to participate in the implementation of the Renewable Energy Master Plan (REMP) 2026–2030, but face significant barriers in accessing finance, meeting contract requirements and competing for projects.
The updated plan targets more than 353,000 jobs and includes the installation of 440 mini-grids, 1.1 million solar lanterns, 125,000 solar street and community lights, solar irrigation systems covering 10,000 hectares, 100 solar crop dryers and 4.5 million improved cookstoves.
However, SYND argues that the scale of the investment will not automatically translate into opportunities for Ghanaian businesses unless government addresses the conditions under which renewable energy contracts are awarded and financed.
At a media briefing in Accra on November 2, the organisation’s Executive Co-ordinator , Chibeze Ezekiel said the experience of young firms showed that procurement requirements designed for large companies were placing smaller local contractors at a disadvantage.
One example cited was FF Electricals and Engineering, a solar engineering company based in Takoradi, which was asked to pre-finance the first phase of a 250-kilowatt solar installation project and wait at least 90 days after completing that phase before receiving payment.
The company was also required to provide insurance cover of at least US$1 million, alongside Energy Commission and tax clearance documents.
According to SYND, such conditions make it difficult for smaller businesses to compete, even when they have the technical capacity to undertake the work.
The organisation says the problem is not a lack of entrepreneurial interest but the mismatch between the financial and administrative requirements of public contracts and the capacity of emerging local businesses.
Local firms identify opportunities in the plan
SYND says 18 youth-led energy businesses have developed proposals covering 16 of the 26 technology areas under the new REMP.
Their business plans include 24 solar crop dryers, 11 community water-pumping systems, 15 agricultural and industrial biogas plants, four mini-grids and more than 10 megawatts-peak of solar photovoltaic installations.
These proposals are not completed projects, but the organisation says they demonstrate that young businesses have identified specific opportunities within the government’s renewable energy programme.
The proposed four mini-grids are particularly significant against the previous plan’s performance. Only eight of the 200 mini-grids targeted between 2019 and 2025 were constructed.
Similarly, only 70 of the 400 solar crop dryers planned under the previous cycle were delivered, while utility-scale wind recorded no installed capacity against a target of 275 megawatts-peak.
SYND argues that breaking the new plan’s targets into smaller procurement packages would give local businesses a better chance of competing for projects.
It is proposing that at least 10 per cent of relevant procurement lots, or installation and maintenance subcontracts, be reserved for qualified local youth-led firms.
It also wants prequalification and documentation requirements adjusted to reflect the size of contracts, with smaller contractors paid within 30 days of completing each project phase or provided with mobilisation advances.
Financing gap threatens participation
Beyond procurement conditions, SYND says access to finance remains a major constraint on the ability of young renewable energy businesses to expand and undertake larger projects.
The organisation is calling for the government to operationalise the Renewable Energy Fund, which was established under the previous plan but has never become functional.
It wants the fund to be included in the 2027 budget, with a dedicated financing window for youth-led and small renewable energy businesses.
The proposed facility would combine pre-investment grants, partial credit guarantees and working capital to help businesses execute supply and installation contracts.
SYND also wants the Ghana Enterprises Agency and the Microfinance and Small Loans Centre (MASLOC) involved in reaching businesses that are not yet ready to attract conventional investment.
The organisation’s concerns come against the backdrop of Ghana’s youth unemployment rate of 21.9%, compared with the national rate of 12.8%, according to figures cited in its statement from the Ghana Statistical Service.
It argues that giving young businesses access to renewable energy contracts could help create employment while retaining more of the investment within the domestic economy.
The REMP estimates that every US$1 million invested in renewable energy creates about 33 jobs.
Previous plan offers lessons for implementation
SYND says the performance of the 2019–2025 renewable energy plan demonstrates the importance of involving local businesses and strengthening domestic supply chains.
While utility-scale solar achieved only 53 per cent of its target and mini-grid delivery fell significantly short, distributed solar reached 86 of its 100MWp target.
Improved domestic cookstoves performed even better, with more than 5.3 million delivered against a target of 1.8 million. The plan attributed the achievement partly to local supply chains and carbon finance.
The organisation believes the new programme should build on these areas of success by giving local entrepreneurs a clearer role in project delivery.
It is also calling for a dedicated youth enterprise programme under the new target of 4.5 million improved cookstoves, alongside support for training, product testing, certification and access to carbon finance.
SYND further wants government to establish one-stop renewable energy facilitation desks in 2027 to simplify business registration, certification and licensing procedures.
It says the five-year tax holiday available to youth-led businesses should also be publicised more widely, while the cost of renewing Energy Commission installer certification should be reviewed for smaller companies.
The organisation is proposing that the REMP Coordinating Unit, which was not established under the previous plan, be set up in 2027 with representation for youth enterprises.
It wants annual progress reports to disclose the number of contracts awarded to young businesses and track youth participation in renewable energy employment.
For SYND, the central issue is whether the US$10.8 billion investment programme will create a meaningful market for Ghanaian entrepreneurs or leave them struggling to meet the requirements for projects financed under the country’s energy transition agenda.
