GIIF eyes Volta Lake development to create jobs, boost trade

The Ghana Infrastructure Investment Fund (GIIF) is considering the development of the Volta Lake corridor to create jobs, stimulate trade, and promote low-carbon economic growth. This project would link northern and southern Ghana, enhance access to ports for landlocked Sahelian nations, and draw investment in renewable energy, sustainable agriculture, and manufacturing.

Nana Dwemoh Benneh, GIIF's CEO, explained that the Fund was targeting a net-zero economic zone with investments in agro-processing parks, climate-smart farming, light manufacturing, and multimodal transportation. By connecting agricultural production zones in the north to markets and industrial centers in the south, the corridor would strengthen trade ties with neighboring countries.

The transportation system would prioritize road and water routes, utilizing the Volta Lake to minimize road-dependent carbon emissions. Renewable energy, specifically solar power, would be considered to supply electricity for industrial and commercial activities. Local pharmaceutical manufacturing is also a potential investment area, which could decrease the environmental costs of transporting medicines while improving supply chains for Ghana and neighboring countries.

The development aims to provide opportunities for young people and small businesses, with GIIF working with commercial banks and financial institutions to explore concessional financing for SMEs. Technical assistance and training would assist entrepreneurs in adopting more environmentally friendly production methods. Beyond industrial and transport infrastructure, GIIF is exploring grant financing to support alternative livelihoods for communities contributing to natural resource depletion, such as mangrove degradation.

The Fund's recent accreditation as a Direct Access Entity of the Green Climate Fund (GCF) will enable it to submit climate investment proposals directly to the GCF without relying on intermediaries, opening access to grants, concessional financing, and other financial instruments. The success of this initiative will be measured by the amount of climate finance mobilized, investments facilitated, and tangible benefits delivered to communities.