Ghana: Stanbic Bank and IFC collaborate to drive climate financing

Stanbic Bank Ghana and the International Finance Corporation (IFC) have recently inked a collaborative pact aimed at facilitating the mobilization of climate financing. This significant agreement was sealed at the prestigious Stanbic Heights in Accra.

This partnership, a first of its kind in Ghana, is dedicated to advancing the nation’s shift towards a low-emission and climate-resilient economy. It aims to broaden the availability of green financing and enhance the well-being of the Ghanaian population.

Under the agreement’s terms, the IFC will provide valuable support to Stanbic by offering training and advisory services. This assistance will aid in enhancing the bank’s expertise in identifying and evaluating climate-aligned asset categories, encompassing clean energy, clean transportation, climate-resilient agriculture, energy efficiency, and sustainable construction.

Chief Executive Officer of Stanbic Bank,  Kwamina Asomaning who signed the agreement on behalf of the bank expressed excitement and optimism about the prospects of the agreement. He said: “Climate change is an important issue with implications for Africa’s growth. We intend to play a supporting role in a just energy transition for the continent. Stanbic is committed to ensuring that our business strategy is consistent with and contributes to society’s needs and priorities. It is a responsibility to actively partake in the cause for environmental sustainability in a manner that creates decent work opportunities and social inclusion. In so doing, we must acknowledge Ghana’s negligible historical contribution to global emissions”.

Mr. Asomaning stated that “The Standard Bank Group, the parent company of Stanbic Ghana, made climate change an imperative before it even became attractive to do so. We were one of the initial signatories to the equator principles and we have always screened our projects to ascertain how they impact the environment. We have always sought to balance issues of climate and Africa’s energy security issues. There are many communities that do not have access to sustainable energy. That is why it’s important to put people and communities at the center of the transition. We do hope to that we can continue to set the pace.”

Kyle F. Kelhofer, IFC’s Senior Country Manager for Ghana, Liberia, and Sierra Leone signed on behalf of the IFC. Mr. Kelhofer shed light on key interventions that are to be enacted within the framework of the agreement. In his address, he stated:

“We are thrilled to embark on this collaborative journey alongside Stanbic Bank. Our partnership holds the promise of comprehensive endeavors that will encompass knowledge-sharing, extensive training, and the exchange of invaluable experiences and innovative ideas. Together, we will be actively engaged in identifying and harnessing opportunities arising from climate change, while steadfastly striving for the resounding success of this partnership.”

“I commend Stanbic Bank for stepping forward to be a pioneer in this program in Ghana. IFC looks forward to engaging more Ghanaian banks as the challenge of climate change is universal and the business opportunities in tackling it are limitless,” he added.

The International Finance Corporation (IFC) and the Standard Bank Group successfully finalized a sustainable term loan of USD 250 million. This achievement represents another substantial stride in solidifying Standard Bank’s dedication to sustainability.