Ghana | The Global Shield against Climate Risks

Initiate process

Stocktake

Gap analysis

Request for Support

Tailoring support

Implementation

Summary

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Dashboard

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Partner

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Details

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Summary

Ghana was the first Global Shield Country that initiated the In-Country Process in 2023 and the first one to start implementation in 2024. Led by the Ministry of Finance, the process encompassed two workshops in July and November 2023, a series of multi-stakeholder consultations, and extensive research to assess the country’s financial protection gaps. Based on these thorough assessments, the government of Ghana officially submitted the Request for Support to the Global Shield at COP28 in 2023. Following the submission, the Global Shield Financing Structure developed a support package, tailored to the needs expressed in Ghana’s request. The Global Shield support package is currently being implemented.

Country facts

Ghana is a West African nation with a population of ~34 million. Agriculture remains the dominant economic sector, employing ~40% of the population.

Climate risks

Ghana is prone to coastal flooding due to sea level rise, inland flooding, agricultural drought, wildfire in the savannah, and pest infestation.

In-Country Process

The Global Shield Financing Vehicles and key partners are currently implementing Ghana’s support package.

Global & local partners

Dr Alhassan Iddrisu

Director, Economic Strategy and Research Division, Ministry of Finance

Foster Gyamfi

Principal Economics Officer, Economic Strategy and Research Division, Ministry of Finance

Solomon Amfoh

Technical consultant

“Ghana was able to purchase its first sovereign risk transfer solution from ARC”

“Through the Global Shield In-Country Process, Ghana was able to purchase its first sovereign risk transfer solution from ARC. Thanks to these efforts, Ghana receives its first insurance payouts for climate and disaster risks. This financial support is not only a lifeline for our farmers and communities, but a testament to the importance of disaster preparedness in the face of climate adversity.”

Phyllis Adwoa Fraikue

Director, Climate Finance Division, Ministry of Finance

Stocktake and gap analysis

Ghana was the first country that kicked-off the inclusive Global Shield In-Country Process in July 2023 under the leadership of the Ministry of Finance. A second workshop took place in November 2023, complemented by a series of consultations and extensive research to assess Ghana’s financial protection gaps.

The outcomes of the desk research, workshops, and complementing consultations are captured in Ghana’s stocktake and gap analysis report. The stocktake revealed many ongoing initiatives and programmes aimed at enhancing financial protection. However, key gaps were identified in the agricultural sector, coastal regions, and urban areas.

Read Ghana’s Stocktake and Gap Analysis here.

Request for Support & support package

Under the leadership of the Ministry of Finance, Ghana was the first country to submit its Request for Support at COP28 in 2023. The Request pointed at several key financial protection gaps, including sovereign-level pre-arranged finance, urban flood coverage, and agricultural insurance.

The Global Shield Support Package addresses these gaps with premium funding for ARC’s drought insurance, premium funding for flood protection in Accra, technical and financial assistance to expand flood protection to other cities, and technical and financial assistance to scale up agricultural insurance for smallholder farmers. Read more on the support package here.

For the full Request for Support: please contact the Secretariat.

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Implementation of support package

In 2024, Ghana purchased its very first drought insurance policy from the African Risk Capacity, with premium support financed by KfW on behalf of BMZ and the Global Shield Solutions Platform.

Between August and November 2024, the Northern regions of Ghana experienced severe drought which impacted the main food staples and crops such as maize, millet, groundnut and rice; spiking food security concerns and significant crop revenue losses. Following this, a first payout of USD 960,202 was triggered for the region under the African Risk Capacity (ARC) Ltd drought insurance policy, covering the period from June 2024 to October 2024. Ghana’s Ministry of Finance has confirmed that the process for the transfer of the funds for implementation has begun.

Moreover, the Government of Ghana is set to receive a second payout of USD 1,927,334, which will aid in providing a quick and effective response to affected communities in the Southern regions.

Updates from Ghana

Blog/Article

Ghana receives first insurance payouts by the African Risk Capacity to help address impacts of recent droughts

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Ghana purchases its first drought insurance policy from ARC

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Advancing Ghana’s Resilience: Highlights of the 2nd In-Country Stakeholder Workshop

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