Ghana’s efforts to attract private investment into climate-resilient infrastructure have received a major boost with the launch of a £5 million Green Project Preparation Facility (PPF), a new initiative designed to transform promising ideas into investment-ready projects.
The facility, launched by FSD Africa, the British High Commission and the Ghana Infrastructure Investment Fund (GIIF), seeks to address one of the biggest constraints to infrastructure financing in Ghana, which is the shortage of well-prepared, bankable projects capable of attracting private capital.
Initially capitalised with £5 million from the UK Government, the facility was first announced during President John Dramani Mahama’s visit to the United Kingdom as part of the UK-Ghana Growth Partnership.
Hosted and managed by FSD Africa in partnership with GIIF, the platform is expected to expand over time as additional development partners come on board.
Closing Ghana’s Infrastructure Financing Gap
While investor appetite for sustainable infrastructure continues to grow globally, many projects in developing economies fail to secure financing because they are not sufficiently prepared or commercially structured.
The Green Project Preparation Facility is intended to bridge that gap by supporting project preparation, reducing development risks and shortening the time required to reach financial close.
It will also strengthen Ghana’s institutional capacity to deliver large-scale climate-resilient infrastructure projects while mobilising domestic and international private investment.
Chief Executive Officer of GIIF, Nana Dwemoh Benneh, described the facility as a strategic intervention for Ghana’s climate investment agenda.
“The PPF is both timely and strategic. It presents a significant opportunity for GIIF and FSD Africa to collaborate in developing a robust pipeline of bankable, climate-resilient and investment-ready infrastructure projects.”
He said stronger project preparation would help unlock climate finance, crowd in private investment and accelerate Ghana’s transition towards a resilient low-carbon economy.
Climate Risks Raise the Stakes
The launch comes as Ghana faces increasing climate-related pressures that threaten economic growth and infrastructure.
Changing rainfall patterns, rising sea levels and more frequent flooding are placing growing strain on transport networks, urban infrastructure, energy systems and agriculture.
Around one-third of Ghana’s electricity generation depends on hydropower, making the energy sector vulnerable to drought and erratic rainfall, while more than 40 per cent of the country’s workforce relies on climate-sensitive agriculture.
The British Deputy High Commissioner to Ghana, Terri Sarch, said strengthening climate-resilient infrastructure remains central to the UK’s development partnership with Ghana.
“Through the Green Project Preparation Facility, we are delighted to be partnering with FSD Africa and the Ghana Infrastructure Investment Fund to turn strong Ghanaian ideas into investable projects.”
She added that the initiative would help unlock much-needed financing for infrastructure capable of addressing the growing impact of climate change.
Pipeline Targets Key Growth Sectors
The facility is open to both public and private sector developers working on climate-aligned infrastructure projects.
Eligible projects are expected to span renewable energy, water and waste management, transport, urban infrastructure, housing and social infrastructure.
Projects will be assessed based on climate impact, commercial viability and their ability to attract investment.
An initial pilot portfolio is already under preparation, while future projects will undergo a transparent appraisal process involving GIIF and other Ghanaian stakeholders.
Expanding Green Finance
The launch further strengthens FSD Africa’s growing engagement in Ghana’s financial sector.
The organisation has supported the Ministry of Finance on debt management and domestic capital market development, helped develop Ghana’s Green Finance Taxonomy, built environmental, social and governance (ESG) capacity within the National Insurance Commission and is working with GIIF to establish a dedicated Climate Sub-Fund.
Chief Executive Officer of FSD Africa, Mark Napier, said the new facility could play an important role in mobilising private investment into Ghana’s climate transition.
“We hope that the PPF will prove instrumental in crowding domestic private capital into a series of important projects that will add value to the economy and boost Ghana’s climate resilience.”
Unlocking Private Capital for Sustainable Growth
The Green Project Preparation Facility reflects a broader shift in development financing, where governments and development partners increasingly focus on improving project quality rather than relying solely on public funding.
By creating a stronger pipeline of investment-ready projects, the initiative aims to reduce financing bottlenecks, attract institutional investors and accelerate the delivery of infrastructure critical to Ghana’s economic growth and climate resilience.
For Ghana, where infrastructure financing needs continue to outpace public resources, the facility could become an important catalyst for mobilising private capital into projects that support sustainable development while strengthening long-term economic competitiveness.
