Financing green projects in Ghana
May 5, 2022
In Ghana, small- and medium-size enterprises often have a hard time getting financing. This is especially true for businesses working with newer green technologies or climate projects. Banks and investors have difficulty properly evaluating what the businesses are trying to do and if they have a chance of success.
An initiative is specifically going after these startups. In 2020, it launched an online platform called frankly.green to connect potential investors with companies.
It is based on an idea it calls crowdinvesting or crowdfunding where investors pool small contributions to finance projects together. Some financial supporters want to do something good for the environment, others see a smart investment opportunity in a promising business idea. So far, investments in companies range from €100 to €25,000.
The initiative originally came from the Frankfurt School of Finance & Management and focuses on developing nations. In Ghana, among other projects, it is currently supporting an established solar panel business. Customers can lease them or opt for a lease-to-own option.
Project goal: frankly.green encourages small-scale investment projects that play a role in climate action in Ghana, Peru and Rwanda.
Budget: For its initial phase, the initiative plans to support around 60 projects and mobilize €6.2 million of private financing from small investors. It has received €3.6 million in funding from the German Federal Ministry for the Environment as part of the International Climate Initiative (IKI).
Partner organizations: The Frankfurt School of Finance & Management, the Fund for Environment and Climate Change in Rwanda, the Ghana Ministry of Energy and Petroleum, and the Peru Ministry of Environment
Duration: March 2019 – December 2023
A video by Richard Ocloo and Jürgen Schneider