Nii Addo
Green Tax Youth Africa (GTYA) has welcomed the government’s plan to raise about GH¢10 billion through bond issuance, describing it as a timely move amid rising development needs and a constrained fiscal environment.
Speaking on behalf of GTYA, the Executive Director, Nii Addo, commended President John Dramani Mahama for the initiative but urged the government to strategically pivot towards green and sustainable finance instruments.
He emphasised that such an approach would not only mobilise capital but also support long-term economic, social and environmental development.
“Ghana has a critical opportunity to recalibrate its financing architecture away from conventional debt instruments towards green bonds, sustainability-linked bonds and other innovative tools that deliver measurable development outcomes,” Mr. Addo said.
GTYA cited global examples where countries have successfully raised funds through sustainable bonds.
The group said the Philippines, for instance, issued US$2.75 billion in global bonds, including sustainability and green instruments, to finance infrastructure, climate resilience and social protection initiatives.
Other African and Asian countries, including Kenya, Nigeria, South Africa, Chile and Indonesia, have used similar bonds to fund renewable energy, transport systems, water infrastructure and climate adaptation projects.
Highlighting local potential, GTYA noted that green bonds in Ghana could finance climate-resilient infrastructure, renewable energy, climate-smart agriculture and nature-based solutions.
Importantly, such instruments could ensure that marginalised communities, women, youth and informal sector workers directly benefit from climate-focused investments.
GTYA urged the government to accompany the bond issuance with a clear sustainable finance framework aligned with international best practices, such as the International Capital Market Association’s Green Bond Principles, while strengthening domestic oversight through Parliament, civil society and regulatory institutions.
The group also made policy recommendations, including mandatory environmental, social and governance (ESG) disclosure for large fixed-income issuances, transparent allocation and independent verification of green bond proceeds, and the engagement of domestic pension funds and asset managers to support sustainable investments.
Platforms such as Ghana’s Biodiversity Finance Initiative (BIOFIN) could be leveraged to coordinate strategies and track impact, it added.
Mr. Addo concluded that Ghana’s GH¢10 billion bond strategy presents a transformational opportunity for the country to become a leader in sustainable finance in Africa, attracting new capital while delivering measurable climate and development outcomes.
FROM David Afum, Kumasi