Ghana and Britain on Thursday launched a £5 million facility to prepare climate projects for private investment, with national regulators estimating the country’s total climate financing gap at $9.3 billion.
FSD Africa, the British High Commission in Accra, and the Ghana Infrastructure Investment Fund (GIIF) formally launched the Green Project Preparation Facility (PPF) at an evening event in Accra. The UK Foreign, Commonwealth and Development Office (FCDO) provided the seed capital. The initiative had its origins in President John Dramani Mahama’s state visit to Britain earlier this year, announced as part of the bilateral growth partnership between the two governments.
The scale of need dwarfs Thursday’s announcement. Ghana’s Financial Stability Review 2025 put the country’s total requirement for climate mitigation and adaptation at $9.3 billion, against an annual average of $830 million in climate finance tracked in recent years. A 2024 dry spell added urgency, devastating crops across 871,000 hectares and affecting more than one million people. The electricity system faces similar exposure: about a third of generation relies on hydropower, and low reservoir levels caused by drought triggered widespread blackouts during a previous dry cycle.
The PPF is designed to tackle one reason private capital has struggled to move into these sectors: projects in Ghana rarely reach the standard required to attract investors. The facility will prepare green infrastructure proposals across renewable energy, water and waste management, transport, housing, and urban infrastructure, assessing each on climate impact, financial viability, and investment potential.
GIIF Chief Executive Nana Dwemoh Benneh said the facility was “both timely and strategic” for Ghana’s climate investment agenda.
FSD Africa, headquartered in Nairobi and active across more than 30 African countries, will host and manage the PPF alongside GIIF. The agency has existing Ghana programmes, including joint development of the national green finance taxonomy and advisory work with the Ministry of Finance on debt management. GIIF, established by act of parliament and operational since 2015, holds a $345 million equity base.
The £5 million figure is a seed, not a ceiling. The facility is structured to grow as other development partners come in. A first cohort of projects is already being prepared. Eligibility criteria and application details are at fsdafrica.org.
