Kofi Adomakoh, the Managing Director of GCB Bank Limited, says there is no reason for banks not to invest in renewable energy and other projects to spearhead the development of the national economy.

Mr Adomakoh, speaking at the Sustainable Use of Natural Resources & Energy Financing (SUNREF) Ghana conference in Accra on July 12, noted that, banks are willing to support and invest in projects that are viable and sustainable.

Moreover, the MD suggested that GCB, as the lead bank in financing national strategic projects would play a critical role for the benefit of indigenous entrepreneurs.

He cited the involvement of the Bank in the government’s flagship programme of the One District One Factory (1D1F) initiative as a typical model to empower local entrepreneurs to upscale development projects.

However, he noted that banks including GCB, largely look at the viability of the projects and conduct due diligence before investing in such projects.

Furthermore, Mr Adomakoh while lauding the SUNREF Ghana initiative, called for the development of the technical capacity of beneficiaries and entrepreneurs so as to meet the requirements of lending and enhance sustainability.

Meanwhile, touching on alternating funding sources for Ghanaian and African businesses, Mr Adomakoh pointed out that, there is available funding that entrepreneurs are not tapping into and urged them to take advantage of these funds.

In addition, the GCB MD noted that, “there is the need for Ghanaian industries especially cottage industries to benefit from synergies”, he also added that the SUNREF programme would bring some cooperation between industries to benefit from.

Additionally, the Managing Director of CalBank, Philip Owiredu, reiterated that one key factor considered by banks in financing projects is risk.

The Team Leader of SUNREF, Norman Michaud, also highlighted the importance of the Sunref project. He stated that the project would help strengthen the capacity of local stakeholders, companies, businesses, associations, sustainable energy agencies, ministries and partner banks.

Furthermore, he explained that the project offers credit lines, investment grants, technical assistance and partnership and urged partner banks to make funding available.

SUNREF Ghana is an initiative that develops a viable market in sustainable energy and environmental services. It consolidates a financing market for green investments, improves energy security, and facilitates access to green finance for companies and individuals.

Furthermore, it is a lending programme that promotes green growth and a turnkey offer to finance green investment for businesses.

This year’s programme was on the theme, “towards a greener future”, it was developed by the Agence Francaise De Development (AFD) with financial support from the European Union. Energy Commission, GCB Bank and CalBank.

It can be recalled that the SUNREF Ghana launched a €32.5m Green Finance Programme on Friday July 9, to boost renewable energy particularly SMEs, improve energy security, and strengthen the capacity of local stakeholders.

In her opening remarks during the launch ceremony, the French Ambassador in Ghana, Anne-Sophie AVE said the collaboration between the European Union, the AFD and local partnering banks represents “a stepping stone towards energy transition and the decrease of Ghana’s carbon footprint and energy intensity.”