Ghana’s green enterprises confront significant structural challenges that limit scalability despite policy efforts, according to an IMANI Centre for Policy and Education report.
Fiscal incentives provide limited relief, with taxes during project execution often neutralizing import exemptions. The Ghana Chamber of Mines’ 84 KW solar installation incurred taxes representing 11% of total costs, a burden disproportionately affecting larger renewable projects.
Policy inconsistency further undermines investor confidence, exemplified by the repeal of emissions levies previously funding climate interventions. “This signals uncertainty in government commitment,” the report states. Workforce limitations compound these issues, with 2021 census data showing 70% of adults possess only basic education and 73% work in low-skill sectors. Just 33% of tertiary students pursue STEM fields critical for green innovation, creating what IMANI terms “a misalignment between education and green economy demands.”
Infrastructure deficiencies present additional hurdles. Fossil fuels dominate Ghana’s energy mix at 70%, while renewables excluding large hydropower contribute just 3.1% of installed capacity. This reliance means green businesses indirectly contribute to emissions through grid consumption. Physical infrastructure also hampers operations, with only 35% of roads rated in good condition.
Market barriers include low public awareness restricting demand for green products beyond niche environmentally conscious consumers, alongside weak certification frameworks that enable greenwashing. “Without addressing fiscal disincentives, skills shortages, infrastructure gaps, and awareness barriers, green business scaling will remain constrained,” the report concludes.
Ghana’s renewable energy transition faces compounded challenges from investment risks to workforce readiness.
