Ghana’s efforts to combat the escalating impacts of climate change on its agricultural industry face a significant hurdle due to a widening climate finance deficit estimated at approximately US$14.25 billion annually.
The revelation, brought to light by Dr. Victor Antwi, Chief of Party for the Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity, raises concerns about the nation’s capacity to implement robust measures to safeguard its agricultural sector against the adverse effects of climate change.
Citing research conducted by Pangea Global Ventures, which indicates that only a mere five percent of Ghana’s annual US$15 billion climate finance requirements are met, Dr. Antwi underscored the urgency of the situation.
He emphasized the need for widespread dissemination of information regarding the impacts of climate change on Ghana’s agriculture and other economic sectors.
Additionally, he stressed the importance of climate finance providers sharing best practices to facilitate replication.
Speaking at the commencement of a three-day USAID Climate Finance Conference in Accra, Dr. Antwi highlighted the significant risks faced by the agricultural sector due to the worsening impacts of climate change, including increased temperatures, shifting precipitation patterns, and more frequent extreme weather events.
These factors pose a threat to global food security and the livelihoods of farmers worldwide, particularly if agricultural systems fail to become more resilient.
Furthermore, Dr. Antwi identified major barriers hindering the flow of climate finance towards building resilience in agriculture, ranging from challenges in designing bankable projects to difficulties faced by smallholder farmers in accessing finance.
He emphasized that investments are not occurring at the necessary pace and scale to address these challenges.
The adverse impacts of rising temperatures, erratic rainfall patterns, and extreme weather conditions have led to decreased yields for rain-fed farmers, with significant implications for Ghana’s economy, food security, and the livelihoods of its citizens.
To address these challenges, he called on stakeholders to adopt an integrated approach to climate finance and action on agriculture. “We need to adapt to Ghana’s agricultural systems to climate change impacts, adopt mitigation measures to reduce emissions from the sector and build resilience for the future.”
The Feed the Future Ghana Mobilizing Finance in Agriculture (MFA) Activity, in partnership with Policy LINK, Market Systems and Resilience, and Africa Trade and Investment Activities, is hosting the USAID Climate Finance Conference under the theme ‘Climate Financing in Ghana: Mobilizing Resources for Adaptation and Mitigation’.
Bringing together key stakeholders from the public and private sectors, as well as development partners, the three-day event aims to facilitate knowledge-sharing on climate action, resources, lessons learned, and best practices in the agriculture finance sector.
It serves as a platform for strategizing on attracting investment to manage climate risks effectively and mitigate their effects.
Plenary presentations during the conference will cover topics such as the global climate financing landscape, carbon markets, finance policies, programs, and lessons for improving intervention design by governments and development partners.
The USAID-supported Feed the Future Ghana Mobilizing Finance in Agriculture has secured approximately US$234.44 million between October 2020 and January 2024. A significant portion of this funding has already benefited smallholder farmers and microentrepreneurs.
Initiatives like the US$2.77 million COVID-19 Relief and Resilience Challenge Fund have particularly supported women smallholder farmers, highlighting USAID’s commitment to sustainable and inclusive climate finance.
Kimberly Anne Rosen, the Mission Director of USAID-Ghana, emphasized the importance of responding adequately to the climate crisis to protect valuable natural resources and provide economic opportunities for vulnerable populations globally.
While recognizing Ghana’s leadership in combating climate change and its receipt of payments from the World Bank trust fund, Rosen noted that the country still lacks the resources to meet its Nationally Determined Contributions (NDCs) under the Paris Climate Agreement. She reiterated USAID’s commitment to advancing ambitious actions to address the climate crisis.