Fidelity Bank Ghana has introduced the Green Lending Fund (GLF), a specialized concessional financing facility aimed at accelerating the expansion of environmentally responsible businesses. By offering affordable, patient capital to ventures that reduce emissions, conserve resources, and align with national sustainability priorities, the Green Lending Fund positions the bank as a key driver in Ghana’s transition toward a low-carbon, resilient economy.
Green Lending Fund Targets High-Impact Sectors
The Green Lending Fund provides loans ranging from GH₵50,000 to GH₵10 million with tenors up to five years, priced at the Ghana Reference Rate minus up to five percentage points annually. This makes borrowing significantly cheaper than standard commercial rates, lowering the cost barrier for projects that deliver both financial returns and environmental benefits. Eligible activities span renewable energy (solar, biogas), sustainable agriculture, water management, waste recycling, green construction, clean transport, cleaner manufacturing, and circular economy models, sectors explicitly recognized under the Ghana Green Finance Taxonomy (2024).
A dedicated Green Finance Review Committee rigorously evaluates applications to ensure alignment with measurable climate and sustainability outcomes, preventing greenwashing and directing capital toward genuine impact.
Ghana faces mounting climate pressures: erratic rainfall patterns threaten agriculture, rising temperatures strain energy demand, and urban waste challenges grow. Meanwhile, global investors and trade partners increasingly favor low-carbon supply chains, creating both risks and opportunities for local businesses. The Green Lending Fund addresses a critical financing gap, green projects often require upfront investment and longer payback periods, deterring conventional lenders focused on short-term returns.
By stepping in with concessional terms, Fidelity Bank de-risks the sector, encourages innovation, and supports Ghana’s commitments under the Paris Agreement, Nationally Determined Contributions, and Sustainable Development Goals on clean energy, industry innovation, and climate action. The initiative also signals to international development partners and multilateral banks that domestic financial institutions are ready to scale green finance, potentially unlocking blended finance or co-financing opportunities.
Green Lending Fund Empowers Businesses and Entrepreneurs
For businesses, the Green Lending Fund offers transformative access to capital. Start-ups with at least one year of consistent cash flow can scale solar installations, biogas plants, or eco-friendly processing lines without prohibitive interest burdens. Established SMEs and corporates gain resources to retrofit facilities for energy efficiency, adopt sustainable farming practices, or invest in waste-to-resource technologies, improving competitiveness, cutting operational costs over time, and meeting export standards that demand environmental compliance.
Lower financing costs preserve margins, enable faster payback on green investments, and reduce exposure to volatile fossil-fuel prices. As more firms adopt cleaner practices, supply chains become more resilient, attracting FDI and creating multiplier effects in job creation, skills development, and local innovation ecosystems.
Green Lending Fund Delivers Tangible Benefits for Households
Households stand to gain indirectly but meaningfully from the Green Lending Fund. Widespread adoption of renewable energy solutions, such as off-grid solar or biogas for rural communities, can lower electricity and cooking-fuel expenses, freeing up income for education, health, or savings. Sustainable agriculture projects supported by the fund promise more stable crop yields and food supplies, helping moderate food-price volatility driven by climate shocks.
Cleaner manufacturing and waste recycling initiatives reduce pollution in urban and peri-urban areas, improving public health and living conditions. Over the medium term, broader economic resilience from a greener private sector supports steadier job markets, higher tax revenues for social services, and reduced future costs from climate disasters, benefits that flow back to everyday families.
Looking Ahead for the Green Lending Fund
The Green Lending Fund’s success will depend on strong uptake, transparent impact reporting, and continuous refinement of eligibility criteria. Fidelity Bank’s leadership in sustainable finance sets a benchmark for other institutions and could catalyze a broader market shift toward green products.
As Ghana navigates energy transitions, agricultural adaptation, and industrial modernization, dedicated tools like the Green Lending Fund prove that profitability and planetary health can align. By lowering capital hurdles for climate-smart ventures, the facility not only accelerates business growth but also builds a foundation for more secure, affordable, and sustainable living for Ghanaian households in a changing climate.
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