GCCE urges stronger collaboration to tackle electric 2-wheeler industry financing
THE Programmes and Outreach Manager of the Ghana Chamber of Clean Energy (GCCE), Ms Emmanuella Biney, has called for stronger collaboration among government, financial institutions and industry players to tackle financing challenges confronting Ghana’s emerging electric two-wheeler industry. She said addressing the financing constraints required more than increasing the availability of capital,…
The Ghana Chamber of Clean Energy (GCCE) has called for enhanced cooperation among government bodies, financial institutions, and industry participants to address the financing hurdles confronting Ghana's burgeoning electric two-wheeler sector. Ms Emmanuella Biney, Programme Manager of GCCE, emphasized that overcoming these challenges necessitates more than just the availability of capital.
It requires suitable financing arrangements, improved institutional collaboration, and a conducive policy environment to bolster investor confidence and increase access to funding.
During a stakeholder consultation workshop held in Accra, GCCE, in collaboration with the William Davidson Institute (WDI) at the University of Michigan, USA, gathered electric two-wheeler manufacturers, assemblers, retailers, financial institutions, and other stakeholders to deliberate on the financing obstacles and deliberate on policy measures to enhance capital access.
Biney highlighted that no single entity could resolve the issues plaguing the sector, advocating for coordinated efforts among government and industry stakeholders.
The workshop prompted the presentation of seven preliminary financing gaps identified through the GCCE's ongoing research. These gaps encompassed the inadequate implementation of announced import duty waivers for electric two-wheeler companies, difficulties in transitioning from grant funding to subsequent investments, and the reliance of companies on their own balance sheets to finance riders.
Other significant constraints identified included limited access to affordable local-currency debt, lending criteria that early-stage companies struggle to satisfy, and equity investors' inclination towards asset-light business models.
Following the presentation, participants engaged in group discussions to validate the findings, identify additional obstacles, and propose strategies to tackle the financing challenges. They also explored avenues to strengthen collaboration among government bodies, financial institutions, electric two-wheeler enterprises, and other industry stakeholders to bolster access to financing and foster sector growth.
The insights and recommendations arising from this workshop will be compiled into a public report co-developed by GCCE and WDI. This report will guide GCCE's interactions with government, financial institutions, and industry stakeholders on necessary policy and financing measures to address the identified barriers and improve capital access for electric mobility businesses in Ghana.
Written by urgent.news from Ghanaian Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
