The Ghana Association of Banks is urging international development partners to step in with concessional funding and credit guarantees to unlock green financing for the country’s construction sector.
They are concerned that high lending rates are stifling their progress.
Chief Executive of the Ghana Association of Banks, John Awuah, says tight liquidity conditions and persistently high interest rates are making it difficult for banks to finance environmentally sustainable infrastructure projects in Ghana.
“If we are serious about ESG integration in the construction and real estate sector, we must ensure that the financial products backing these transitions are fit for purpose,” Mr Awuah told 3Business in an interview on July 29.
He called on climate-focused donors, multilateral institutions, and ESG-aligned funds to partner with Ghanaian banks through credit guarantees and subsidised capital to help reduce the cost of lending for green projects.
According to Mr Awuah, there is growing interest within the banking sector to support sustainable development goals, particularly in the real estate and construction industries. However, the current macroeconomic environment, marked by inflationary pressures and rising borrowing costs, has created major barriers.
“Ghanaian banks are ready to support ESG-aligned infrastructure, but they need the right tools, risk-sharing frameworks, and access to affordable funding,” he said.
The appeal comes as Ghana’s construction sector faces mounting pressure to align with global sustainability standards, with government policies increasingly targeting green building practices.
Industry analysts say without targeted financial support, Ghana risks falling behind in its climate commitments and urban sustainability goals.
