Feasibility Study for Development of a Green Bonds Market in Ghana

The report finds that while there is broad stakeholder interest and significant latent potential for green projects in Ghana—particularly in renewable energy, green housing, and water infrastructure—the green bond market is currently nascent with no prior issuances. Key barriers include a shallow debt capital market, a lack of formal issuance guidelines, limited technical capacity to identify eligible project pipelines, and a mismatch between issuer and investor expectations regarding pricing. The study suggests that government leadership, such as a sovereign green bond issuance planned for 2021/22, and the development of a dedicated green segment on the Ghana Stock Exchange are critical for catalyzing the market. It also emphasizes the need for credit enhancements and technical assistance to bridge the gap between speculative project ideas and bankable green bonds.

• Green financing in Ghana is in a nascent stage, with no sovereign or corporate green bonds issued to date, despite the existence of several policy frameworks like the National Climate Change Policy (NCCP) and the National Climate Change Master Plan (NCCMP).
• The Ghanaian debt capital market is heavily dominated by government transactions, with corporate issuers playing a minor role and a limited secondary market that complicates mark-to-market valuations.
• There is a significant lack of formal guidelines and regulations for green bond issuance in Ghana, though the Ghana Stock Exchange is currently working to publish issuance guidelines and establish a dedicated segment.
• A primary hurdle to market development is the lack of a developed pipeline of eligible projects, largely due to the novelty of the product and low technical capacity among market participants to assess project alignment with green standards.
• There is a pricing mismatch where issuers expect a 'green premium' (cheaper funding), while local investors typically demand significant premia over government bonds to compensate for corporate credit risk.
• The Government of Ghana is expected to be the first issuer to catalyze the market, with plans to issue a green bond in 2021/22.
• Potential green bond opportunities are identified in several sectors, with a theoretical pipeline totaling USD 7.4 billion, including large-scale solar (USD 963m), wind (USD 719m), and rail projects (USD 2,000m).
• The absence of mandatory credit risk ratings for bond issuance in Ghana hampers market development, as many institutional investors lack the capacity to independently quantify credit and market risks.
• Institutional investors, particularly pension funds, are the primary purchasers of debt in Ghana; while generally conservative, some are beginning to incorporate ESG factors and the NPRA is reviewing guidelines to potentially increase exposure caps for green bonds.

APA

FSD Africa (2021). Feasibility Study for Development of a Green Bonds Market in Ghana. https://fsdafrica.org/wp-content/uploads/2025/05/Ghana-Green-Bonds-Scoping-Report-22.04.21.pdf

Chicago

FSD Africa. Feasibility Study for Development of a Green Bonds Market in Ghana. 2021. https://fsdafrica.org/wp-content/uploads/2025/05/Ghana-Green-Bonds-Scoping-Report-22.04.21.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=Feasibility Study for Development of a Green Bonds Market in Ghana |date=April 2021 |url=https://fsdafrica.org/wp-content/uploads/2025/05/Ghana-Green-Bonds-Scoping-Report-22.04.21.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2021feasibility, author = {{FSD Africa}}, title = {{Feasibility Study for Development of a Green Bonds Market in Ghana}}, institution = {FSD Africa}, year = {2021}, month = apr, url = {https://fsdafrica.org/wp-content/uploads/2025/05/Ghana-Green-Bonds-Scoping-Report-22.04.21.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }