Seidu Issifu is seen here at the meeting in Washington, DC
Ghana reaffirmed its leadership in climate resilience and innovative finance during the Global Shield Partner Country Roundtable held at 2000 Pennsylvania Avenue, Washington, DC.
Addressing the session, Seidu Issifu, Minister of State for Climate Change and Sustainability, highlighted Ghana’s pioneering role as the first country to operationalize the Global Shield against Climate Risks — a landmark initiative advancing pre-arranged financial protection for climate-vulnerable nations.
Ghana: Breaking the Climate–Debt Cycle
Minister Issifu emphasized that Ghana stands at the frontline of the climate crisis. The country continues to face recurrent droughts in the north, severe flooding in the south, and unpredictable rainfall patterns that undermine agriculture and food systems.
These events, he noted, erode infrastructure, displace communities, and destabilize public finances — forcing governments to borrow or divert scarce resources to finance recovery efforts.
“Climate impacts deepen debt vulnerability, and debt limits our ability to invest in resilience,” Minister Issifu stated. “Breaking this cycle is a national priority.”
From Commitment to Action: Ghana’s Global Shield Success
Ghana’s leadership in the Global Shield process is already yielding tangible results. With support from partners, the country purchased its first parametric drought insurance through the African Risk Capacity (ARC).
The insurance was triggered in late 2024, leading to payouts totaling nearly USD 2.9 million to support drought-affected farmers in northern Ghana.
The minister commended the collaboration with the National Disaster Management Authority (NADMO) to ensure payouts reach vulnerable communities swiftly and transparently.
These experiences, he explained, prove how pre-arranged finance can provide rapid relief while safeguarding fiscal stability and reducing the need for emergency borrowing.
Expanding Protection and Building Resilience
Beyond drought insurance, Ghana is working with the Global Shield Solutions Platform and other partners to develop additional instruments, including urban flood protection and broader climate risk financing. These innovations form part of Ghana’s growing portfolio under its national Global Shield package.
Minister Issifu also announced that Ghana is updating its Climate Prosperity Plan—a flagship initiative of the Climate Vulnerable Forum (CVF) and V20 Group of Finance Ministers—to integrate comprehensive Climate and Disaster Risk Finance and Insurance (CDRFI) strategies.
Three Strategic Shifts in Ghana’s Climate Finance
The updated plan reflects three strategic transformations:
1. Diversified Financing Mix: With overseas development assistance projected to decline by up to 21% after 2027, Ghana is designing a blended finance model combining concessional and commercial capital, guarantees, carbon revenues, and domestic savings to sustain climate investments.
2. Macro-Fiscal Stability: Under the IMF Extended Credit Facility, Ghana’s fiscal framework has stabilized, creating an enabling environment to synchronize economic recovery with climate ambition.
3. Integration with the 24-Hour Economy: Ghana’s national development agenda will embed climate risk management and private capital mobilization into its 24-hour economy strategy—ensuring every investment reduces vulnerability and strengthens competitiveness.
A Model for Climate-Resilient Growth
Minister Issifu concluded by reaffirming Ghana’s unwavering commitment to fiscal responsibility, financial innovation, and climate ambition.
He lauded the Global Shield as a transformative mechanism that shifts countries from reactive disaster aid to proactive financial preparedness.
“The Global Shield is not just a response tool—it is the foundation for long-term economic stability and sustainable growth,” he declared. “Ghana is proud to lead by example and stands ready to collaborate with all partners to advance resilience for the most vulnerable.”