In Ghana, banks urged to link lending to environmental protection
By the AFREEQUE newsroom, based on Ghanaian Times
Illustrative image · Akil Mazumder · Pexels · Licence PexelsAt a workshop in Accra organised by UNDP and the government, banks were urged to take environmental impact into account before granting loans. The country’s natural resources are estimated at 1.5 billion dollars, according to UNDP.
Ghanaian banks and financial institutions are being urged to factor in the environmental impact of businesses before granting a loan, as biodiversity loss threatens the country’s natural assets, valued at US$1.5 billion. The call was made at a workshop in Accra organised by the United Nations Development Programme (UNDP) and the government, aimed at mobilising private capital for biodiversity conservation.
UNDP is working with the ministries of Environment and Finance on a first biodiversity financing plan for Ghana, launched under an initiative from April 2025. According to Abdul-Razak Saeed, head of the UNDP Ghana environment and climate cluster, the plan is to identify funding gaps and explore tools such as green bonds, biodiversity credits and debt-for-nature swaps.
Enoch Appiah, head of biodiversity finance, asks banks to assess the environmental and social impact of projects before financing them, and to judge their performance also on the environmental effects of their investments. Nurokinan Chimbar, a sustainable finance specialist, notes that more than half of Ghana’s GDP depends directly on nature. Financial assets estimated at GH¢647 billion, or about 45% of GDP, are exposed to risks linked to nature degradation.
