Ghana Climate Innovation Center Business PlanThis report was written by infoDev staff in collaboration with Sync Consult Ltd, Ghana. Primary authors are Michael Ehst, Bennet Kpentey,

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DRAFT COPY

Ghana Climate Innovation Center

Business Plan

Building competitive clean technology

industries in Ghana

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Copyright

© 2013 Information for Development Program (infoDev)/ The World Bank

1818 H Street NW

Washington DC 20433

Internet: www.infoDev.org

Email: [email protected]

All rights reserved

Disclaimers

infoDev/The World Bank: The findings, interpretations and conclusions expressed herein are

entirely those of the author(s) and do not necessarily reflect the view of infoDev, the Donors of

infoDev, the International Bank for Reconstruction and Development/The World Bank and its

affiliated organizations, the Board of Executive Directors of the World Bank or the governments

they represent. The World Bank cannot guarantee the accuracy of the data included in this

work. The boundaries, colors, denominations, and other information shown on any map in this

work do not imply on the part of the World Bank any judgment of the legal status of any territory

or the endorsement or acceptance of such boundaries.

Rights and Permissions

The material in this publication is copyrighted. Copying and/or transmitting portions or all of this

work without permission may be a violation of applicable law. The International Bank for

Reconstruction and Development/The World Bank encourages dissemination of its work and will

normally grant permission to reproduce portions of the work promptly.

Contributing Authors

This report was written by infoDev staff in collaboration with Sync Consult Ltd, Ghana. Primary

authors are Michael Ehst, Bennet Kpentey, Samiksha Nair, and Georgina Campbell.

To cite this publication:

Ghana Climate Innovation Center Business Plan. An infoDev publication, December 2013.

Available at: http://infodev.org/articles/cicbusinessplans

Cover photo:

Solar home system installation by Wilkins Engineering Ltd, Ghana (http://wilkinsengineering.com)

http://infodev.org/articles/cicbusinessplans

http://wilkinsengineering.com/

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About infoDev

infoDev (www.infodev.org) is a global partnership program within the World Bank Group which

works at the intersection of innovation, technology, and entrepreneurship to create

opportunities for inclusive growth, job creation and poverty reduction. infoDev is a thought

leader in technology-enabled small business incubation, assisting governments and technology-

focused entrepreneurs and new ventures to grow jobs, improve capacity and skills, increase

access to finance and markets, ensure the appropriate enabling policy and regulatory

environment for business to flourish, and test out innovative solutions in developing country

markets. infoDev works in partnership with other development programs, with World Bank/IFC

colleagues, and with stakeholders from the public, private and civil society sectors in the

developing world.

The Climate Technology Program (CTP) is creating a global network of Climate Innovation

Centers (CICs) that provide a country-driven approach to climate change and allow countries

to achieve their green growth objectives. It targets the early stages of innovation, including the

key role of entrepreneurs and growth-oriented startups. Eight CICs are currently being

developed in Kenya, Ethiopia, India, South Africa, Vietnam, Morocco, the Caribbean and

Ghana.

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CONTENTS

1.0 Executive Summary ......................................................................................................... 6

2.0 Climate Innovation Centers .............................................................................................. 8

2.1 infoDev Goals ...................................................................................................................................................... 8

2.2 The Climate Innovation Challenge ...................................................................................................................... 8

2.3 Gaps in Existing Initiatives and Institutions ......................................................................................................... 8

2.4 Incubators, Accelerators and Innovation Centers ............................................................................................... 9

2.5 Climate Innovation Centers ............................................................................................................................... 10

3.0 Climate Technology Market Analysis .............................................................................. 15

3.1 Climate Change in the Ghanaian Context ......................................................................................................... 15

3.2 Defining Climate Innovation Technologies in Ghana ........................................................................................ 19

3.3 Sector priorities for Ghana CIC .......................................................................................................................... 21

3.4 Evaluation of priority sectors ............................................................................................................................ 24

3.5 Deal flow analysis: Sample companies .............................................................................................................. 34

3.6 Stakeholder Analysis ......................................................................................................................................... 36

4.0 Climate Innovation Gaps and Needs Analysis ................................................................. 42

4.1 Gaps and Needs Assessment Process................................................................................................................ 42

4.2 Entrepreneurship and Venture Acceleration Gaps and Needs ......................................................................... 43

4.3 Access to Finance Gaps and Needs ................................................................................................................... 45

4.4 Market Growth and Access Gaps and Needs .................................................................................................... 46

4.5 Technology and Product Development Gaps and Needs .................................................................................. 48

4.6 Policy and Regulatory Gaps and Needs ............................................................................................................. 50

5.0 Climate Innovation Center Model .................................................................................. 52

5.1 Overview of CIC services ................................................................................................................................... 52

5.2 Regional Engagement ........................................................................................................................................ 53

5.3 Women’s Entrepreneurship .............................................................................................................................. 54

5.4 CIC Service Lines ................................................................................................................................................ 55

6.0 Operational Plan ............................................................................................................ 64

6.1 GCIC Implementation ........................................................................................................................................ 64

6.2 CIC Host Selection ............................................................................................................................................. 65

6.3 Establishment Phase – Year 1 ........................................................................................................................... 66

6.4 Scale-up Phase: Years 2-5 .................................................................................................................................. 66

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6.5 Governance ....................................................................................................................................................... 67

6.6 Organizational structure ................................................................................................................................... 67

6.7 Safeguards ......................................................................................................................................................... 69

6.8 Other Issues to be addressed during Implementation ...................................................................................... 70

6.9 Exit Strategy ...................................................................................................................................................... 70

7.0 Financial Plan ................................................................................................................. 72

7.1 Budget for establishment through year five ..................................................................................................... 72

7.2 Sustainability ..................................................................................................................................................... 74

7.3 Co-investment and Leverage ............................................................................................................................. 75

7.4 Fundraising Plan ................................................................................................................................................ 75

7.5 Global Network Participation ............................................................................................................................ 75

8.0 Indicative Impact and Results ......................................................................................... 77

8.1 Highlights ........................................................................................................................................................... 77

8.2 Monitoring and Evaluation ................................................................................................................................ 77

8.3 Logic Model (LM) ............................................................................................................................................... 79

8.4 Indicative Performance Measurement Framework (PMF) ................................................................................ 80

9.0 Risks .............................................................................................................................. 83

10.0 Conclusion ................................................................................................................... 86

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1.0 Executive Summary

Name of

Program

Ghana Climate Innovation Center

Program

Objective

The objective of the Ghana Climate Innovation Center (GCIC) is to establish

local institutional capacity to support Ghanaian entrepreneurs and new

ventures involved in developing profitable and locally-appropriate solutions to

climate change mitigation and adaptation. Through its programs, activities

and financing, the GCIC and its network of partners and stakeholders will

provide a country-driven approach to solving climate, energy and resource

challenges and support economic development through job creation. The USD

17.2m program will provide targeted support, mentoring, training and funding

facilitation to up to 100 companies in Ghana over 5 years.

Design Process The Center’s business model and associated services are dependent on, and

tailored to, the local market. To identify market needs, opportunities and

challenges from a local perspective, infoDev developed the GCIC business

plan through a detailed analysis and an extensive in-country, multi-stakeholder

engagement process. Over 250 stakeholders from the region were convened

for a series of workshops, focus groups, surveys and interviews to explore the

key barriers to climate technology innovation and entrepreneurship in Ghana

and the design of appropriate solutions to these barriers in the form of the

GCIC’s programs, services and support.

GCIC Model Based on the design process the GCIC model the CIC will offer the following

Service Lines:

Entrepreneurship and Venture Acceleration

+ Business advisory, mentoring, access to professional services + Technical training and skills development + Seminars, events and networking opportunities + Office space and services for entrepreneurs and start-ups + Women’s entrepreneurship program

Access to Finance

+ Proof-of-concept grants up to USD 50k + Direct Seed Capital Investments (debt/equity) from USD 50k-1m + Facilitation of commercial investment

Market Growth and Access

+ Research and analytics on markets, competitors and sector trends

+ Export promotion program + Technology quality and performance information and database

Technology and Product Development

+ Access to technical facilities and services to design, prototype, test and demonstrate products

+ Commercialization program for universities and research institutes involved in climate tech R&D

Policy and Regulatory Support

+ Advocacy with government on climate tech policy issues

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+ Research on sector policy trends and best practice + Policy dialogues, roundtables and events

Sector(s)/focus Energy Efficiency (Industrial and Household)

Domestic Waste Management

Solar Energy

Water Supply Management and Purification

Climate Smart Agriculture

Current donors Danish Government

Investment

required

USD 17,206,500 (of which USD 10m expected contribution from Danida)

Impacts and

Results

The GCIC and infoDev will actively track results of the Center’s operations

under a Performance Measurement Framework. Through modeling the GCIC’s

deal flow using benchmarks from company data in the region, it is projected

that after 5 years, revenues of up to 100 GCIC-assisted companies will

generate the equivalent of approximately USD 28.6 million in economic

impact. This will assist up to 304,000 people to increase their resiliency to

climate change through providing increased access to cleaner sources of

energy and better and more efficient sources of water and agricultural

resources. In the long term (over 10 years), assuming continued financial

support, it is projected that GCIC-supported ventures will generate close to

10,720 cumulative jobs and mitigate over 661,598 tons of CO2e.

Target

Implementation

Period

2014-2019

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2.0 Climate Innovation Centers

Over a six-month period, through an extensive stakeholder engagement process, infoDev

assessed the feasibility of establishing a locally owned and operated Climate Innovation Center

(CIC) in Ghana. The engagement process culminated in September 2013 with approximately

220 stakeholders from varied backgrounds and experiences joining a workshop in Accra to

provide input into the proposed design and development of a CIC in Ghana.

2.1 infoDev Goals

The following are the goals of infoDev in designing, implementing and operating a CIC in

Ghana:

Assess the feasibility of establishing a CIC in Ghana and develop a full business plan that

addresses market failures preventing domestic innovation in climate technologies.

Based on the business plan, mobilize investment to implement the CIC to execute the

Center’s programs, services and financing via suitable in-country partner

institutions/consortia.

Network the Ghana CIC (GCIC) regionally and internationally to promote technology

collaboration, business linkages and to support local and international trade opportunities

for Ghana’s climate technology sector.

2.2 The Climate Innovation Challenge

New technologies are essential to reduce the long-term cost of climate change and achieve

green growth. Developing countries want to build their own capacity to innovate to (i) ensure

energy security and increased energy access, (ii) promote climate change mitigation and

adaptation and (iii) create competitive domestic industries in clean tech for job creation and

economic benefits.

However, barriers to innovation in climate sectors are especially high and even more

pronounced in developing countries. These barriers often include gaps in appropriate financing,

lagging technical and business capabilities, entrepreneurial and human capacity constraints

and uncertain regulatory environments. Moreover, many developing countries lack the public

and private sector bodies that support innovation, and as a result support for locally appropriate

climate innovation is often weak or absent. infoDev has designed the business model for the

Ghana CIC with these barriers in mind.

2.3 Gaps in Existing Initiatives and Institutions

In addition to the country specific analysis and stakeholder engagement described in the

following sections of this chapter, infoDev also commissioned a report by Bloomberg New Energy

Finance that surveyed and analyzed hundreds of government, private and public-private

initiatives that support climate and clean energy innovation to provide a broader context of the

needs faced by the climate and clean technology sector globally. These included centers of

excellence, seed funds, technology accelerators, business incubators, advisory centers and

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other programs. Of the 500 that were analyzed, 70 were mostly focused on climate technologies

and only 25 dedicated all of their operations to climate – a small number relative to the gravity

of the challenges and immense market opportunities.

The findings of this report provide context to

the barriers and gaps that CICs seek to

address. The report found gaps in the existing

institutions, which prevented them from

addressing the broad range of barriers,

associated with climate innovation. Some

focused only on financing or business

advisory while others concentrated efforts

solely on technical development – few

advocated policy reform or standards. Only

a few institutions addressed most barriers

including China’s Baoding New & High Tech

Industrial Development Zone, China, The UK’s Carbon Trust and Brazil’s CIETEC at the University of

Sao Paulo. Geographic coverage was also sporadic with a majority of centers located either in

developed or highly industrialized developing countries.

2.4 Incubators, Accelerators and Innovation Centers

infoDev supports innovation in developing countries through facilitating a global network of

almost 250 business incubators. These incubators act as hubs to aggregate financing and shared

services to accelerate innovative companies, helping them overcome market barriers that are

particularly high in developing countries. Experience has shown that these centers dramatically

increase the survival rate of new enterprises with over 75% being operational after 3 years of

exiting the incubator.

As a policy tool, incubators are a highly effective form of public spending, resulting in lower long-

term employment costs when compared with infrastructure projects.1 Incubation experience

also has shown that for every USD 1 of government subsidy, a Return on Investment (ROI) of USD

30 tax revenue can be generated in the long-term through corporate and income taxes from

the spun out companies.2 With infoDev’s business incubator network expanding to almost 250

centers in more than 75 developing countries, supporting over 16,000 enterprises and creating

200,000 jobs, such programs form an important component of developing country economic

growth and employment strategies.

1 Grant Thorton Report on Incubation: Source: U.S. Economic Development Administration 2 NBIA (National Business Incubation Association) data

Locations of institutions supporting climate innovation

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2.5 Climate Innovation Centers

As multilateral, national and local solutions are being structured to support the development

and deployment of climate friendly technologies, infoDev’s Climate Technology Program is

rolling out Climate Innovation Centers (CICs) in 8 regions including Kenya, Ethiopia, India, South

Africa, Ghana, Morocco, Vietnam and the Caribbean. While the Kenya CIC has been

operational since mid-2012, other CICs are expected to launch or commence implementation

in 2013 and 2014. The CICs support innovation by offering a full suite of financing and capacity

building services to technologists, entrepreneurs and new ventures that address challenges to

starting and scaling their climate or clean technology businesses. In addition to incubating

promising start-ups, CICs provide dedicated proof-of-concept and seed capital funding to

entrepreneurs to bridge local funding gaps.

In parallel to investments, CICs also provide business advisory and training services, market

development services, access to product testing facilities and government engagement on

policy. In this way, a CIC acts as a national focal point, coordinating efforts in promoting the

growth of locally relevant climate sectors. CICs also provide a platform to create international

business-to-business linkages, enhance knowledge sharing and facilitate trade.

Brazil’s CIETEC

CIETEC, or Centro de Inovacao, Empreendedorismo e Tecnologia, is the largest incubator in

Latin America and one of the most successful in Brazil. Although it covers a range of sectors,

CIETEC’s focus has shifted recently, and now hosts some 20 climate technology companies,

more than any other incubator in Latin America. With many renewable energy success stories

in its portfolio - including wind, hydro, solar hot water and fuel cells - CIETEC offers valuable

insights for the Climate Innovation Center in Ghana.

Founded in 1998 with funding from government microfinance program SEBRAE, CIETEC is a

‘full-service’ incubator that provides assistance to companies at all stages of innovation - from

R&D through demonstration and deployment to diffusion and transfer. The center provides

companies with office space, laboratory use, and consultancy services at heavily discounted

prices. It also helps to arrange financing from public and private sources, and is thinking

about creating its own investment fund.

The CIETEC model is proving successful on a wide range of measures. In its first decade, the

number of companies under incubation has grown from 15 to 140. CIETEC also helps its

companies secure private sector equity investment – rising to USD5M in the past few years.

CIETEC’s success rate is also impressive: while 75% of Brazilian start-ups fail within three years,

for CIETEC companies, that rate is just 30%. The center’s work also represents value for money:

according to its 2008 annual report, for every USD 1 the government furnished to CIETEC

companies, it received USD 3.40 in taxes. A total of 90 innovative companies have already

graduated from CIETEC, of which some 30 continue to be associated with the center,

achieving revenues of USD12M per year and creating thousands of jobs.

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General services provided by Climate Innovation Centers

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The Kenya Climate Innovation Center

The Kenya Climate Innovation Center (KCIC) was launched in September 2012 with support

from the Governments of Denmark and the United Kingdom. The KCIC is hosted by a

consortium comprising four main partners: Pricewaterhousecoopers (PWC) Kenya, Strathmore

University, Global Village Energy Partnership (GVEP) International and Kenya Industrial

Research and Development Institute (KIRDI). The Center provides an integrated set of

services, activities and programs that leverage and expand existing innovation capacity and

support the accelerated scale and deployment of climate technology solutions.

In the first five years, the KCIC is expected to create more than 70 sustainable climate

technology businesses, generating some 4,600 direct and indirect jobs. Over the next

decade, it is estimated that over 24,000 jobs will be created in Kenya and 1.74m tCO2 will be

mitigated from CIC supported technologies.

The KCIC has already secured 62 clean technology entrepreneurs from over 230 applications

in the following sectors; renewable energy, agribusiness and water and sanitation. The

majority are renewable energy ventures including clean and energy efficient cookstoves,

biogas, biofuels, briquettes and solar technologies. Others include water purification systems

and mushroom farming to produce fertilizer.

For more information please visit http://kenyacic.org

http://kenyacic.org/

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2.5.1 Complementarity with Ongoing and Future Programs

Each CIC is being designed and developed leveraging the experiences and expertise of

hundreds of local stakeholders representing R&D, academia, entrepreneurs, NGOs, private

companies and host government ministries such as energy, environment, science and

technology, industry and finance. This is to ensure that existing local initiatives are

complemented and coordinated without duplication. It is also to secure local participation and

ownership that will increase the success of the CIC’s implementation and operations.

The GCIC would collaborate in delivery of services with local and international actors, including

clear commercialization and technology partners. Relevant experience from partners for each

stage of an SME’s development, be it prototyping, early market traction or scale, will be essential

to GCIC supported startups. Another important aspect is the GCIC’s role and ability to reach out

to international investors, private sector companies, research institutions and climate innovation

networks to encourage collaboration with GCIC supported companies.

infoDev is coordinating efforts at the global level as well, including existing and future programs

designed to support climate technology development and deployment. This includes ongoing

efforts at the UNFCCC with the Climate Technology Center and Network (CTC&N), international

organizations such as the Global Green Growth Institute (GGGI), multilaterals such as the Inter-

American Development Bank (IDB), The World Bank and IFC and bi-lateral organizations

including development partners and donors. Participation in the global network of CICs is

explained in section 7.5 of this business plan.

2.5.2 Stakeholder Engagement Process in Ghana

The Center’s business model and associated services are dependent on, and tailored to, the

local market. To identify market needs, opportunities and challenges from a local perspective,

infoDev developed a business plan via detailed analysis and an extensive in-country, multi-

stakeholder engagement process. Over 250 stakeholders from Ghana were convened for a

series of workshops, focus groups, surveys and interviews to explore the key barriers to climate

technology commercialization and assist in the development and design of appropriate

solutions to overcome barriers. This gaps-needs analysis formed the basis for the GCIC business

model.

The flow chart shows the process of the GCIC business plan development

Mar - June '13:

Local stakeholder identification &

concept workshop

Apr - June '13:

Sector mapping and research

May-July '13:

Quantitative analysis and surveys

June - July '13:

In-depth interviews

June '13:

Regional Focus Groups (Takoradi, Kumasi,

Tamale)

July - Sept '13:

Development of CIC business model

Sept '13:

Validation workshop & working groups

Nov '13:

Delivery of final business plan

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Two workshops were held for climate technology stakeholders from across the region in the

private sector, academia and the public sector. These workshops were held in Accra and

included over 230 participants. During these workshops, expert panels and working groups

identified and examined gaps, barriers and proposed solutions to scaling climate-related

businesses in Ghana. Gaps, barriers and solutions were considered in relation to five thematic

areas, namely:

Entrepreneurship and venture acceleration

Access to finance

Market growth and access

Technology and product development

Policy and regulatory support

Photos from Stakeholders Workshops and Focus Groups

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3.0 Climate Technology Market Analysis

3.1 Climate Change in the Ghanaian Context

While Ghana’s contribution to climate change through greenhouse gas emissions is currently

negligible,3 the impacts of climate change on Ghana’s economy, people, and development

prospects are projected to be substantial.4

Ghana has experienced impressive reductions in poverty and steady economic growth in

recent years5 advancing it from low-income to lower-middle income status in 2010, almost a

decade earlier than expected.6 However, with anticipated increases in temperature, extreme

weather events and unpredictable rainfall in Ghana over the next century,7 climate change

poses a growing threat to this economic and developmental progress.

With continuing rises in temperature and extreme conditions, agriculture productivity and

GDP is projected to decline in Ghana: Although annual temperatures and precipitation

are predicted to fluctuate, temperature data shows a warming climate across most

ecological zones in Ghana over the period of 2010-50.8 For example, dry season mean

temperatures are projected to rise by about 2 degrees C by 2050 to about 3 degrees C

by 2080.9 These temperature increases are expected to adversely impact agricultural

productivity over time due to the industry’s heavy reliance on rain-fed crops (particularly

small-scale-farmers10 and women11). Relative to the baseline, crop yields are predicted

to decline by 7% by 2050.12 Furthermore, agricultural GDP is predicted to decline by 3-8%

by the middle of the century, with expected losses of as much as $122 million per annum.

Given that agriculture contributes approximately 40% of real GDP to the Ghanaian

economy13 and over 50% of the population derives their livelihood from agriculture, these

3 The World Development Indicators of the World Bank show CO2 emissions have increased from 3927.80kt in 1990 to

about 9801.20kt in 2007, averaging about 0.3 metric tons, per capita 4 "Economics of Adaption to Climate Change”. World Bank. 2010 5 "USAID/Ghana Country Development Cooperation Strategy 2013-2017”. USAID. December, 2012 6 "No Longer Poor: Ghana’s New Income Status and Implications of Graduation from IDA ". T. Moss, S. Majerowicz Center

for Global Development. July, 2012 7 "Ghana Climate Change Vulnerability and Adaption Assessment ". USAID. June 2011 8 Ibid 9 "Ghana Climate Change Vulnerability and Adaption Assessment ". USAID. June 2011 10 "Ghana Goes for Green Growth (Ghana's National Climate Change Policy Framework)" . Government of Ghana. 2010 11 "Netherlands Climate Assistance Program Ghana Country Report". W. Kojo Agyemang-Bonsu, B. Dougherty, A. Fencl, E.

Kemp-Benedict". July 2008 12 "Draft National Assessment Report on Achievement of Sustainable Development Goals and Target for Rio+20

Conferences". Ministry of Environment Science and Technology. December, 2011 13 "Economics of Adaption to Climate Change". World Bank. 2010

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predicted impacts could be especially detrimental to the Ghanaian economy and

people.

Coastal erosion aided by rising sea levels will result in significant loss of land and forced

migration: The coastal zone is home to five major cities, a series of large ports and about

a quarter of the population of Ghana. It is also a hub for major economic activities such

as fishing, oil and gas exploration, cement production and aluminum smelting. The

residing communities and industries of the coastal zone are extremely vulnerable to

climate change. Sea levels are expected to rise over 1 meter this century, causing

significant coastal erosion, submerging 1,120 square kilometers of land and promoting

large migration from the affected zones to the cities.14 This influx of people will apply

significant pressure on an already weak urban infrastructure and power supply. Urban

migration is estimated to cost $4.8 million per annum by the 2020s and is predicted to rise

to $5.7M per annum by the 2030s.15

Extreme weather events are becoming more frequent and putting additional strain on

Ghana’s infrastructure: Ghana does not face changes in average weather patterns but

does face changes in the frequency, intensity and timing of weather events such as

rainstorms, strong winds and drought. In 2007, for example, one town in northern Ghana

experienced 20% of the annual average in one day.16 Rainfall in combination with weak

infrastructure causes flooding, which is hugely disruptive and costly. The northern floods

of 2007 affected 317,000 people, destroyed 1000km of roads, 210 schools, 45 health

clinics, and damaged or contaminated 630 water facilities. This disaster cost on the

order of $25 million in direct emergency funding.17 Bridges, roads, and houses are most

vulnerable because necessary infrastructure provisions have not been taken over the

years to prepare them for extreme weather events.

Health is deteriorating in Ghana as a result of reduced access to food supplies and clean

water: Health and sanitation is already a major concern in Ghana and will continue to

deteriorate with increased incidences of flooding, droughts, heat waves and dry winds.

Cases of malaria and cholera are expected to rise due to poor sanitation and urban

flooding. Risk of diarrheal diseases and Guinea worm infestation is likely to increase due

to poor water supply. High incidences of meningitis cases are expected due to an

14 "Ghana Goes for Green Growth (Ghana's National Climate Change Policy Framework)". Government of Ghana. 2010 15 "Economics of Adaption to Climate Change". World Bank. 2010 16 "Ghana Goes for Green Growth (Ghana's National Climate Change Policy Framework)". Government of Ghana. 2010 17 ibid

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increase in heat waves. Malnutrition is also likely as a result of shortages in local food

supplies caused by a reduction in farmland productivity, especially in rural areas.18

Rapid urbanization and poor waste management is leading to the depletion of land and

marine resources in Ghana: Ghana’s waste disposal facilities are struggling to keep up

with rapid population growth, especially within the major cities. This combination of

growth and poor management has resulted in large waste build ups and illegal land and

sea dumping across Ghana. These dumping grounds are leaking toxic substances into

the air, soil and water and adversely affecting anyone/ thing who is in close proximity.19

Ghana’s poor waste management practices were a primary reason for its low ranking in

the 2010 Environmental Performance Index (EPI) of Yale University, where Ghana ranked

109 out of 163 countries in terms of environmental public health and ecosystem vitality.

Natural resources are being depleted at an alarming rate: Deforestation has been

identified as one of the prime causes of climate change in the 20th century and is likely to

contribute to further changes in the 21st century.20 Unfortunately, deforestation is a major

problem in Ghana. With 70% of land in Ghana prone to soil erosion, farmers are hard-

pressed to find nutrient-rich land. The farmers have therefore resorted to converting forest

into agricultural land. A total of 33.7% (2508000 ha) of the forest cover of Ghana has

been lost over the last 20 years.21 It is feared Ghana’s natural forests could be lost within

23 years.22

Unpredictable rainfall, in combination with increased energy demand, is expected to

result in energy shortfalls across Ghana: Current generation capacity in Ghana is

2125MW, of which the majority comes from hydro and thermal sources. As the

population and economy continues to grow, Ghana is expected to require an additional

1560MW of dependable generation capacity (over the next decade). 23 Traditional

sources will most likely not be able to meet this growing demand. Hydroelectric plants will

struggle to meet demand because unpredictable rainfall causes variations in water

18 "Netherlands Climate Assistance Program Ghana Country Report". W. Kojo Agyemang-Bonsu, B. Dougherty, A. Fencl, E.

Kemp-Benedict". July 2008 19 http://www.modernghana.com/news/296201/1/waste-disposal-a-dilemma-for-the-economy-and-healt.html 20 "IPCC Third Assessment Report - Climate Change". IPCC. 2001 21 "Draft National Assessment Report on Achievement of Sustainable Development Goals and Target for Rio+20

Conferences". Ministry of Environment Science and Technology. December, 2011 22 "Universities and Economic Development in Africa Case Study: Ghana and University of Ghana". T. Bailey, N. Cloete, P.

Pillay. 2010 23 "Energizing Economic Growth in Ghana: The Power Sector- DRAFT". Energy Group, World Bank. January 2013

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inflows into the facilities and thus affects hydro outputs. Thermal power plants are unable

to meet demand because rising fuel prices are limiting fuel supplies.24

Emission rate per capita is relatively low compared to developed countries but is rising

rapidly with industrialization and urbanization: Economic growth and development in

Ghana has resulted in a consistent increase of emissions in Ghana over the past 20 years.

Indeed, the World Bank’s World Development Indicators show CO2 emissions have

increased from 3927.80kt in 1990 to about 9801.20kt in 2007, averaging about 0.3metric

tons, per capita. These emissions are currently negligible against the global average but

may become a concern as the economy continues to grow.25

It is apparent that Ghana is highly vulnerable to the impacts of climate change and as such, its

prospects for continuous growth will depend on the country’s ability to respond accordingly.

According to the infoDev report 26 on Climate Innovation Centers, the UNFCCC notes that

although developing countries will eventually have to mitigate their emissions, in the near term,

“adaptation will be more important for these countries since they host the world’s most

vulnerable populations and societies and, for the most part, lack adequate financial resources

with which to respond.” Climate adaptation therefore assumes a major role in the focus of this

business plan.

This imperative to adapt is made even more urgent by the November 2012 World Bank report27

that provides a snapshot of the implications of a 4 degrees Celsius rise in temperature for the

world, focusing on developing countries. Without serious policy changes, scientists now nearly

unanimously predict that current emissions trends put the world on a path towards a 4°C

scenario. Even with the current mitigation commitments and pledges fully implemented, there is

roughly a 20 percent likelihood of exceeding 4°C by 2100. However, arguably the most

important implication of a 4°C scenario is that it is starkly different from the current scenario,

bringing high uncertainty and new risks that threaten the ability of countries to anticipate and

plan for future adaptation needs.

Ghana’s next phase of growth is critically dependent upon its ability to develop, adapt and

adopt innovative, climate-related technologies and systems. Such locally-applicable climate

technologies will enable the region to adapt to climate change, mitigate emissions and provide

energy, resource and food security with reduced dependence on fossil fuel imports, and

increase competitiveness in the global economy.

24 ibid 25 "Draft National Assessment Report on Achievement of Sustainable Development Goals and Target for Rio+20

Conferences". Ministry of Environment Science and Technology. December, 2011 26 Sagar, Ambuj and Bloomberg New Energy Finance 2010. Climate Innovation Centres: A new way to foster Climate

Technologies in the Developing World? infoDev in collaboration with UNIDO and DFID. The International Bank for

Reconstruction and Development/The World Bank. Washington, DC

27 “Turn Down the Heat: Why a 4°C World Must be Avoided”. The World Bank Group, November, 2012

Page 19

3.2 Defining Climate Innovation Technologies in Ghana

Several climate or ‘clean’ technologies 28 are already important to Ghana and others are

emerging as viable options upon which to develop innovative, business-driven solutions to the

climate and energy issues facing the country. In order to gain an overview of climate change

market opportunities in Ghana, seven areas covering fifteen business sectors were initially

examined, giving consideration to Ghanaian-relevant applications within each area. These

seven areas include renewable energy, energy efficiency, sustainable agriculture/forestry, clean

transport, water supply management and waste, domestic waste management and improved

building design. An eighth miscellaneous category was also added after further examination

and consultations with key stakeholders and based on Ghana’s green growth strategy. The

conceptual landscape of the market for these technologies is shown here

# Area Sector Technology Code

1

RENEWABLE ENERGY

Solar Energy

Grid Connected Solar PV RE

Off-grid/Distributed Solar PV RE

Solar Thermal RE

Solar Thin Film RE

Concentrated Solar Power RE

Wind Energy

Distributed Wind RE

Onshore Wind Farms RE

Offshore Wind Farms RE

Geothermal Energy Geothermal Power RE

Tidal Energy Tidal Power RE

Bio-fuels and Bio-mass

Bio-fuels RE

Biogas Generation RE

Distributed Biomass Power RE

Waste-to-energy RE

Bio-diesel/Ethanol RE

Hydropower

Small/Medium Hydro

(<100MW) RE

Hydro (>100MW) RE

Power Storage and

Distribution

Mini Grids RE

Battery Technology RE

Fuel Cells RE

2

ENERGY EFFICIENCY Energy Efficiency

Appliances (e.g. cook stoves,

SWH) EE

Transmission and Distribution EE

HVAC EE

28 In this document the terms “climate technology” and “clean technology” are used interchangeably to refer to

technologies that contribute to climate mitigation and adaptation and fall within one or more of the eight sectors listed

in the section 3,2 table.

Page 20

Energy Efficient Manufacturing EE

Lighting EE

Green IT EE

3

SUSTAINABLE AGRICULTURE/

FORESTRY

Climate Smart

Agriculture

Agri Machinery/Equipment SA

Food Processing SA

Bio-pesticides and Fertilizers SA

New Resilient Crops/Seeds SA

Waste Management SA

Forestry

Flood/Storm Resistant Products SA

Waste Harvesting and Storage SA

Afforestation Products SA

4

CLEAN TRANSPORT Clean Transportation

Urban Planning CT

Public Transport CT

Electric Vehicles CT

Low Carbon Transportation CT

5

WATER SUPPLY MANAGEMENT

AND PURIFICATION

Water Management

and Purification

Waste Water Recycling WM

Water Use Efficiency WM

Efficient Irrigation WM

Rain Water Harvesting WM

Potable Water WM

Waste Water Treatment WM

Desalination WM

6 DOMESTIC WASTE MANAGEMENT

Domestic Waste

Management

Recycling, e-waste

Management DW

7

IMPROVED BUILDING DESIGN Buildings and Materials

Advanced Materials/Coatings BD

Recyclable/Bio-degradable

Products BD

Roofing/Windows/Insulation BD

Low Carbon Buildings BD

Greenhouses/Shade Materials BD

Flood/Storm Resistant Products BD

8

OTHER Other

Weather Services (warning

systems, insurance) OTH

Carbon Capture and Storage OTH

The Climate Technology Market Landscape

In terms of climate impact, energy, water and agricultural technologies are interconnected

areas and all relate directly to the objectives associated with climate adaptation (as well as

mitigation). Cleaner transportation technologies relate directly to energy use, whereas building

technologies relate to energy and water use. Finally, resource use efficiency potentially impacts

across all of the areas and technologies applicable to climate innovation. Further detailed

background information on these areas is provided in the Annexes.

Page 21

3.3 Sector priorities for Ghana CIC

3.3.1 Introduction and background

Identifying priority sectors for the GCIC is important to ensure that limited resources are

effectively utilized, duplication of existing activities and investment are avoided and the

Center’s efforts are focused to develop core expertise. While the GCIC will primarily target

funding and support to the identified priority sectors, it will not exclude other promising and

potentially high-impact individuals and companies operating in other areas, particularly in the

Center’s start-up phase. The GCIC must remain receptive to a diverse range of climate

technology solutions to ensure a robust deal-flow and ultimate success.

3.3.2 Process for determination of sector priorities

A consultative and analytical process was developed and implemented by the infoDev team to

generate and gather input and feedback with regard to the design of the GCIC in general and

the prioritization of technology sectors in particular. This process is illustrated below and

presented in further detail in the Annexes.

Process for determination of the priority climate technology sectors

1. Workshops for ongoing engagement and input

Two workshops were held for climate technology stakeholders from across the region in the

private sector, academia and the public sector. These workshops were held in Accra and

•A list of 250 entities (individual entrepreneurs, firms, universities, government and others) in Ghana’s climate technology sectors was compiled by the infoDev team

•110 regional experts and stakeholders responded to an online survey, providing feedback on issues relating to tech prioritization, gaps and solutions in 5 thematic areas

• List of 15 climate tech sectors identified

• Scoring on 13 criteria by infoDev team & regional experts

• Input from survey results to produce a weighted average score and ranking of the top priority areas

CLIMATE TECHNOLOGY MARKET ANALYSIS

SECTOR MAPPING

SURVEY

TECHNOLOGY PRIOTITIZATION

DEFINITION

OF GAPS,

SOLUTIONS

& PRIORITY

SECTORS TO

BE

ADDRESSED

BY THE

GCIC

•A report was compiled primarily from secondary research, drawing on a wide range of Ghana-specific climate analysis and assessments.

•Report conclusions were confirmed through two stakeholder meetings held in Ghana and numerous consultations.

Page 22

included over 230 participants.29 During these workshops, expert panels and working groups

identified and examined gaps, barriers and proposed solutions to scaling climate-related

businesses in Ghana. Gaps, barriers and solutions were considered in relation to five thematic

areas, namely:

Entrepreneurship and venture acceleration

Access to finance

Market growth and access

Technology and product development

Policy and regulatory support

2. Sector mapping

A climate technology sector map, comprising an initial list of 250 existing individuals, companies

and entities in the climate technology market, was developed and refined over time.

Stakeholder Number

Government, Ministries, Departments and Agencies (MDAs) 22

Research Institutions 11

Universities 3

Firms (Large and small) 160

Business Incubators 7

Financial Institutions 17

CSOs 9

NGOs (Local and International) 5

Development and International Partners 16

Total 250

Composition of Stakeholders Identified

3. Online survey

29 The dates of the workshops were: April 3, 2013 at the Coconut Grove Hotel, Accra; Sept. 11, 2013 at La Palm Hotel,

Accra

Page 23

More than 110 stakeholders (many of whom had previously participated in the workshop and in

person interviews) responded to an online survey 30 to provide feedback regarding the

technology prioritization, in addition to other issues relating to gaps and solutions of the five

thematic areas defined at the workshop. Respondents included entrepreneurs (two thirds of the

respondents), individuals from government organizations, academia, research centers, industry,

finance, NGOs and other organizations.

4. Technology prioritization

The process of technology prioritization involved three key components.

Based on the conceptualization of the climate innovation technology market landscape,

a long-list of 15 relevant climate sectors (further disaggregated into related technologies)

was identified for evaluation against assessment criteria including technology readiness,

market demand, business model viability, entrepreneurial and workforce resource

capacity and availability, policy landscape and potential impact. Each sector and

technology was scored (using scores of low, medium or high) against the 13 criteria.

The infoDev team, in consultation with national experts, scored the sectors and derived a

weighted average ranking of the sectors, and

Online survey results were given equal weight which was incorporated to the experts’

scores to provide a final score and ranking of the importance of the climate technology

sectors.

The ranking for all 15 sectors is shown in the Annexes, including the detailed evaluation criteria.

To be considered a priority, the sector had to score above 60% from both the online survey and

the expert assessment. Five sectors met these criteria, listed below.

3.3.3 Definition of priority climate technology sectors

Based on the scoring of the 15 climate technology sectors identified, five technology sectors

were identified as being those that will be the priority focus of the GCIC, listed below in order of

importance:

1. Energy Efficiency (industrial and household)

2. Domestic Waste Management

3. Solar Energy

4. Water Management and Purification

5. Climate Smart Agriculture

30 A total of 155 prospective respondents were sent the online survey via email in June 2013. 110 responses were

received. Full details are shown the annexes.

Page 24

Other technology areas among the 15 that were also considered to be important included

hydro power, improved building design and construction, clean/efficient transportation

technologies, power distribution/storage and biomass energy. These will not be included as

priority areas for the GCIC, however if a particular entrepreneur or business has a compelling

proposition in any of these areas, it will not be excluded from consideration for support. Wind

energy, tidal energy, weather warning systems and geothermal energy were ranked as low

priorities by the stakeholders.

3.3.4 Scoring of prioritized sectors

In this section the basis for scoring each of the five priority sectors is described. The combined

score for each has been derived as a combination of the scores resulting from both the expert

evaluation and the stakeholder surveys, in equal weight. The score measures the importance

(low, medium or high) of each criterion associated with each of the technology sub-sectors.

3.4 Evaluation of priority sectors

Evaluation Criterion Code Description

Technology Readiness TR Potential of the technologies to enter the market in the near future

Market Demand MD Subsidies, consumer orientation, competing technologies,

affordability, etc.

Availability of Funding AF Near-term fund for R&D, commercialization and expansion

Clear, Ready Stakeholders RS Stakeholders able to affect the likelihood of adoption of a given

technology

Business Model BM How viable is the business model today? Includes supply-chain,

distribution, consumer access, etc.

Leverage of Indigenous

Resources

IR Ability to utilize and/or leverage the region's natural resources

Entrepreneurial Capacity EC Existence of talent or ability to develop/recruit talent to make the

company a success

Workforce WF Current or potential workforce capabilities necessary to

commercialize given technology

Policy PO Regulations, incentives and policies impacting on a given

technology

Economic Impact EI Potential impact of a given technology on local economy

Carbon Impact CI Potential impact of a given technology on CO2 reduction

Social Impact SI Ability to impact rural poor and marginalized populations

Already on Track AT There is good traction in the market for these technologies

(H) High (M) Medium (L) Low

Page 25

3.4.1 Priority Technology 1: Energy Efficiency (industry and household)

ENERGY

EFFICIENCY

(INDUSTRY)

TR MD AF RS BM IR EC WF PO EI CI SI AT

Lighting H L L H M L M L M H H M H

Appliances H H M M H L M M H H H L H

HVAC (heating,

ventilation, and air

conditioning)

H H L M M L M M H M H L H

Energy efficient

manufacturing

M M M L L L L L L M H M M

Transmission and

distribution

H H M M L M M M H H H H L

Solar IT M L L L L M L L L H H H L

ENERGY

EFFICIENCY

(HOUSEHOLD)


Lighting H M L M M L M M M H H H L

Appliances H H L H H H M M H H H M H

HVAC (heating,

ventilation, and air

conditioning)

H H L H H H M M M H H M M

Solar IT L M L L M M M M L L L L L

Main applications: Appliances (e.g. cook stoves, SWH), VAC, Manufacturing Processes,

Lighting, Green IT, Transmission & Distribution

Background and Opportunities: In absence of rapid renewable technology

implementation, Ghana’s power sector may face difficulties in generating adequate power to

meet increasing demand. Energy efficiency is an immediate solution to demand shortfalls in

Ghana.

A series of polices and government initiatives have shaped the way for growth of Ghana’s

efficiency sector, particularly in the efficient lighting and appliances industries. In 2007, for

example, the Ministry of Energy introduced an efficiency program to promote the adoption of

efficient lighting amongst residential consumers. The sale of high-energy intensity incandescent

lamps was banned and the purchase of energy efficient compact-fluorescent lamps was

mandated. The GoG also implemented a free nationwide exchange and installation program,

Combined Score 4.0/5

Page 26

in collaboration with the EU. The estimated cost of the program was about 15 million USD. This

legislation has resulted in the distribution of 6 million CFLs and is estimated to have led to a total

CO2 savings of more than 100’000 t CO2e in 2008/2009 compared with earlier years.31

The ‘Promoting Appliance Energy Efficiency and Transformation of the Refrigerating Appliances

Market in Ghana” program targets growth in the efficient appliance sector. This program allows

people to exchange their old refrigerator for cash or a new refrigerator. Additional loans are

provided to finance the purchase of new, efficient fridges. This program began in 2011 and will

run until the end of 2013. It was implemented by the EC in coordination with UNDP and has an

expected budget is 5.7 million USD. The GoG also expects to establish new standards for

modern refrigerators.32

There also exists huge potential for efficiency implementation in commercial organizations and

large industries, as energy is poorly managed in this sector.33

3.4.2 Priority Technology 2: Domestic Waste Management

Domestic waste

management TR MD AF RS BM IR EC WF PO EI CI SI AT

Recycling H H M M H H H H H H H M M

e-waste management H M L M H H M H H H H L L

Main applications: Biogas Generation MW, Distributed Biomass Power kW, Recyclable/

Biodegradable Products, Waste-to-Energy

Background and Opportunities: Rapid population growth in Ghana has led to huge

increases in municipal waste production in recent years, particularly in major cities such as

Accra. With roughly 4 million inhabitants and an annual growth rate of 4%, Accra34 is the largest

metropolitan area in Ghana and currently generates over 2000 tons of waste daily. This waste

(per capita generated) equals 0.6kg/day35 and consists of 80% organic waste, 10% of plastic,

glass and metals, and less than 12% of paper per day36.

31 "Initiatives related to climate change in Ghana Towards coordinating efforts". L. Wu rtenberger, I.G. Bunzeck, X. van

Tilburg, Energy Research Center of the Netherlands (ECN). April 2011 32 "Ibid 33Raphael Wentemi Apeaning, Energy Efficiency and Management in Industries – a case study of Ghana’s largest

industrial area. Master’s thesis, Linköping University, Swede, May 2012 34 Reference to the Greater Accra Metropolitan Area (GAMA) 35 “Defining options for integrated management of municipal solid waste in large cities of low-income economies: the

case of the Accra metropolis in Ghana”. J.N. Fobil, D. Carboo, C. Clement. 2002 36 This waste data is based on a UN report and refers to an average of Accra and other African cities -

http://www.modernghana.com/news/296201/1/waste-disposal-a-dilemma-for-the-economy-and-healt.html


Page 27

Unfortunately, this increase in waste production far exceeds the capacity of the current system

to manage the waste effectively. Indeed, of the thousands of tons of waste generated daily,

Accra currently only has the capacity to collect 66% of it.37

On a local level, waste is collected house-to-house or through a central container and is

managed by a series of private sector firms who are scattered over 16 waste collection zones.

These firms charge a fee which is most often paid by the city authority, the Accra Metropolitan

Authority (AMA), and covered by national budgetary allocations from the state government

and internally generated funds. Although private sector firms directly manage the waste, the

AMA supervises the waste collection firms, monitors the public-private partnerships, and

manages the final disposal points.38

Only 20% of the population, mostly high income and low-density neighborhoods, benefit from

house-to-house collection. The remaining 80% are required to deposit their waste in central

containers, shared between communities. Waste pick-up from shared facilities is highly variable

as collection trucks often have trouble reaching the collection site due to poor roads. The sites

are therefore only emptied when laborers are hired to use handcarts. Central pay-as you dump

services are also available in some areas but residents frequently favor illegal dumping sites like

ditches or drains. This infrequent service has led to large waste build-ups and street dumping in

highly dense areas39. To add to the waste disposal problems, only 30% of all houses have toilets

that flush (although 77.5% have toilets) and only 20% of houses have functioning indoor

plumbing. The public facilities have been provided to accommodate this lack of plumbing but

are overused and often shared by 10 or more people.40

Disposal of large-scale industrial and house-hold waste occurs mainly at landfill sites. Accra does

not have an engineered landfill site near-by and it is becoming difficult to acquire land for this

purpose due to NIMBY and land disputes.41 The lack of proper landfill facilities means that waste

is transported over long distances, if at all. Further, it is feared that landfills are not properly

monitored and are thus leaking of toxic substances into the soil.42 Some recycling and reuse

occurs but only on a small-scale. The recycling industry lacks support in form of logistics, training

in occupational health and safety, vaccination, and access to finance.43

e-waste is also a growing concern in Ghana. Hundreds of shipping containers full of used

appliances such as refrigerators, old computers, and washing machines arrive each month.

These appliances used to be sold at a premium however consumer preferences have changed

in recent years due to local growth. These secondhand imports are therefore now being

dumped in to Ghana’s already overflowing wasteland. Indeed, 20-50 million tons of electronics

37 http://www.cwru.edu/med/epidbio/mphp439/Waste_Mgmt_Accra.pdf 38 ibid 39 http://www.modernghana.com/news/296201/1/waste-disposal-a-dilemma-for-the-economy-and-healt.html 40 Boadi K, Kuitunene M. Municipal Solid Waste Management in the Accra Metropolitan Area, Ghana. The

Environmentalist. 2003; 23: 211-218 41 World Bank & http://www.slideshare.net/D-Waste/the-waste-management-situation-in-accraghana-the-challenges-

and-prospects 42 http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=262225 43 http://www.ghananewsagency.org/details/Features/We-can-solve-our-waste-disposal-concerns-it-s-

doable/?ci=10&ai=48423

Page 28

are discarded each year, with 70% of these products being shipped to the poor countries,

including Ghana.44

A series of public and private schemes have been launched to improve the waste situation in

Ghana. These schemes open up opportunity for innovations in the sorting, collection,

transportation and disposal of waste. Privatization of the waste industry has certainly benefited

the waste industry. Traditionally, waste services in Ghana were monopolized by a few select

contractors. Today, 80% of waste-related services are provided by the private sector and, in

Accra, are spread across several zones. Although the government still closely monitors the

process and influences the selection process, waste collection has slowly improved over the last

decade.

Zoomlion Ghana Limited, a waste management giant in Ghana, has introduced several

innovative schemes such as the leasing of tricycles and other equipment to informal waste

collectors. ZoomLion has also demonstrated an interest in dry anaerobic digestion of household

waste. Other waste-to-energy projects in planning include a methane gas extraction from old

dumpsites to sell directly to the Electricity Company of Ghana45 and a compost facility. Further,

waste management capacity building has begun in universities through modular courses in

waste management and the launch of The Institute of Sanitation and Waste Management,

which has been created to run waste consulting services.46

3.4.3 Priority Technology 3: Solar Energy

SOLAR ENERGY TR MD AF RS BM IR EC WF PO EI CI SI AT

Off-grid/Distributed Solar PV

H M M H H H H H M H H H H

Solar PV MW H L L M M H H H M H H H M

Concentrated Solar PV MW

M L L M M H M M M L H L M

Solar Thermal MW L L L M L H L L M L H L M

Solar Thin Film L L L M L H L L M M H L L

Main applications: Grid-connected solar PV, Off-grid/ Distributed solar, Solar thermal, Solar

thin film, Concentrated solar power, Solar devices (lamps, charging units, etc.)

Background and Opportunities: Solar as a resource is abundant throughout Ghana.

Indeed, the monthly average solar irradiation in Ghana is between 4 and 6kWh/m2/day, with

44 United Nations Environmental Programme, 45 http://www.ghanaweb.com/GhanaHomePage/NewsArchive/artikel.php?ID=262225 46 http://www.slideshare.net/D-Waste/the-waste-management-situation-in-accraghana-the-challenges-and-prospects


Page 29

sunshine duration of between 1,800 and 3000 hours per annum and an annual sunshine duration

of one thousand eight hundred to three thousand hours.47 Utilization of this solar energy could

add to the growing grid capacity in Ghana (with an exploitable capacity of 20MW), and

supplement off-grid distribution of energy, for those who do not have access to the national grid

system.

Despite this solar potential, grid-scale solar is yet to be implemented in Ghana. Indeed, no

large-scale solar projects exist to date although the Volta River Authority (VRA) is driving a series

of pilot schemes. For example, the VRA has recently commissioned a small 2 MW solar PV grid-

connected plant as a pilot project in Navrongo in the NEDCo areas of operation. The

renewable energy law has been recognized as a key element in helping the project go ahead,

under which the plant has been awarded a feed-in tariff for 20 years.48 Further projects may be

in the pipeline as energy companies look to utilize the renewable energy incentives offered by

the Act.

The off-grid solar industry has grown over the years and will probably continue into the future.

There was a sharp increase in the number of solar PV systems from 700 in 1993 to 2,530 systems in

1998. By December 2003 about 4,911 systems were installed with total installed power of 1.0

peak megawatt (MWp)49. The majority of installations were solar home systems (4500). Other

solar devices included: water pumping (80), vaccine refrigeration (210), telecommunication

(63), radio receivers (34), rural telephony (3), grid-connected (50kw) (1), and battery charging

stations (20).50 Furthermore, according to the Institute of Economic Affairs, by 1991, there were

about 335 public solar PV installations in Ghana with total estimated power of 160 kW. There has

been an increasing trend ever since, and by 2003, installed power had increased to 1000 kW.51

Today, Ghana has almost 10,000 solar-panel installations in communities that don’t have access

to the national power grid, according to Edward Bawa, a spokesman for the Ministry. This

growth is primarily due to the GoG National Electrification Scheme (NES) lead by the Ministry of

Energy of Ghana. The NES was launched in 1990 with the aim of securing electricity access for

all of Ghana by 2020 through the promotion of solar installations.

Notwithstanding the progress made to serve households in un-electrified villages, challenges

remain for the off-grid solar installation sector. There seems to be an unwillingness of rural

households to invest in PV systems as they unfairly anticipate getting connected to the grid.

Furthermore, current government policy focuses heavily on grid connections and therefore adds

to the attraction of the grid and lessens the appeal of off-grid solutions, even in remote, rural

communities areas where the grid is unlikely to ever arrive. Finally, the initial cost of procuring the

solar panels is large. It is important to remember that Ghana is a developing country and many

47 http://www.parliament.gh/assets/file/Bills/Renewable%20Energy%20Bill%202011.pdf 48 http://www.bbc.co.uk/news/science-environment-20583663 49 "Solar PV rural electrification and energy-poverty: A review and conceptual framework with reference to Ghana". G.

Yaw Obeng and H. D. Evers. "Technology Consultancy Centre Kwame Nkrumah Univ. of Science

& Technology Kumasi, Center for Development Research (ZEF), University of Bonn". February, 2009 50 Ibid 51 Ibid

Page 30

Ghanaians still live on or below the minimum wage. Micro-loans and other innovative financing

schemes for solar panels are available to some communities and thus offer some level of

affordability, but many cannot afford the luxury. A survey carried out in Africa and Asia

revealed that only 5 percent of rural populations could pay cash for a solar home system, 20

percent could afford it if short or medium term credit were available, and 25 percent could

afford long-term credit or leasing.52

As in other countries the issue of cost-effectiveness of off-grid storage has been one of the

barriers to developing the renewable energy sector in Ghana. The issue centers on generating,

storage and usage at minimal cost to the consumer. Generally on-grid has been realized as the

most cost-effective option allowing individual companies to generate and store power on-grid

and to draw on that power when needed. With peak load occurring in early evening, most solar

installations can generate power throughout the day and store this onto the grid system.

The passing of the Renewable Energy Law, subsequent setting of the feed-in-tariff and

associated policy of net metering provide the needed framework for on-grid storage of power.

Net metering is a key instrument for actualizing the Feed In Tariff from renewable energy.

Indeed, the Feed In Tariff is a vehicle for attracting investment into the renewable energy sector

as it offers investors an opportunity to realize returns on their investment by relying on the existing

electricity infrastructure.

Similar to other segments of the renewable energy sector, the primary challenge with LEDs is the

absence of consumer financing, which constrains the growth of the market particularly in rural

areas. Partnerships with microfinance institutions in rural communities to support buyers who

meet a certain criteria could support market development efforts. Another intervention could

target vendors and distributors who have better knowledge of the local communities and know

potential buyers with some form of vendor finance.

Finally other issues relate to the quality of the LED bulbs and lamps. LEDs bulbs and lamps are

expected to have longer lives than ordinary bulbs and lamps. There has, however, been a

proliferation of sub-standard LEDs bulbs and lamps with very short lifespan in the market, the

frequent replacement of which is a disincentive for adoption due to higher cost implication. One

of the gaps is a system to stop the importation and entry into the market of sub-standard LEDs

that do not meet minimum quality standards.

52 "Investing in Power and People. A Global Action Plan. Renewable Energy World". J. Plastow, A. Goldsmith James and

James Publication: 47-59. November- December 2001

Page 31

3.4.4 Priority Technology 4: Water Management and Purification

WATER

MANAGEMENT

AND PURIFICATION


Waste water treatment H M M L H H H H M M M H L

Portable water H H M L H H H H H H L H M

Water use efficiency H H L L M H H H M H L H M

Waste water recycling M M L L H H H H M M L J L

Desalination M M M M M H L L M H L H L

Rain water harvesting M L L L M H H H L H L H H

Efficient irrigation H M M M H H H H M H L H M

Main applications: Waste Water Recycling, Water Use Efficiency, Efficient irrigation, Rain

Water Harvesting, Portable Water, Waste Water Treatment, Desalination

Background and Opportunities: Several opportunities exist in the water sector as a result

of the growing gap between clean water supply and demand. Water is primarily used for

drinking, washing and cooking. The main source of drinking water in Ghana’s cities is surface

water. In smaller and more rural communities, drinking water is sourced from the ground. River

water is used for washing.

Unfortunately, the city and rural water supplies are not satisfying the demand. A total of

280,000m3 of water is consumed per day but this is only about one third of the daily demand,

which totals 763,300m3. The quality of the water supply is also poor. In urban areas, 62-70% of

people have access to treated water. In rural areas, treated water is only available to 35-40% of

people. 53

Untreated water has resulted in major health concerns in Ghana. Diarrhea for example

accounts for about 12% of childhood deaths and it is the third largest cause of death for

children under the age of five after malaria and pneumonia. With adequate advancements in

the water sector (technology development and adoption), portable water could be made

accessible and mortality could drop by as much as 75%. Research has shown that improvement

in drinking water quality through household water treatment, such as chlorination at point of use

and adequate domestic storage can lead to a reduction of diarrhea episodes by 39% for each

$1 invested in safe drinking water and sanitation.54

53 "Ghana's Business Development Profile". Danida Business Partnerships. March 2013

54 "Draft National Assessment Report on Achievement of Sustainable Development Goals and Target for Rio+20

Conferences". Ministry of Environment Science and Technology. December, 2011


Page 32

Promoted by GoG water and sanitation sector policies and guidelines, private sector

participation in water supply markets in Ghana is increasing. Coca Cola Company Limited and

agencies with specific interest in water including the Ghana Water Company Limited, Water

Resources Commission and the Community Water and Sanitation Agency have formed water

strategic partnerships to support growth in the sector. Further, the private sector (particularly

companies engaged in fish processing, fruit processing, and beverage production) are looking

to install their own water supply systems because they require large amounts of water which the

urban water supply network cannot effectively and reliably deliver.55 These developments could

offer market opportunities for water sector technology and business innovations. Water

technologies could include improved purification techniques or infrastructure innovations. Water

businesses could include consultancy and contract services, maintenance and private

operations of water and sanitation systems, and innovative options for post construction

financing, for example the insurance of water facilities, and water supply management.

3.4.5 Priority Technology 5: Climate Smart Agriculture

SUSTAINABLE

AGRIBUSINESS TR MD AF RS BM IR EC WF PO EI CI SI AT

New resilient

crops/seeds H H M H H H L L M H L H M

Water/energy efficient

agri

machinery/equipment M M L H M H L L H H L M L

Water/energy efficient

irrigation systems M M L H H H H M M H L M L

Climate

friendly/energy

efficient food

processing M M L M M H L M M H L M L

Biopesticides and

fertilizers M H M M M H M L M H M M M

Waste management H M L L H H L M M H M M M

Main applications: Agri-Machinery/ Equipment, Food Processing, Bio-Pesticides & Fertilizers,

Resilient Crops/Seeds, Agricultural Waste Management

Background and Opportunities: Ghana is richly endowed with natural resources that

provide a sizable supply of viable agricultural land suitable for forestry, hunting, fishing, crop

cultivation, and livestock production. Major local crops in Ghana include cereals such as maize,

rice millet, guinea corn and sorghum. Starch foods such as cassava, yam, cocoyam and

55 "Ghana's Business Development Profile". Danida Business Partnerships. March 2013


Page 33

plantain are also common. Industrial crops include cocoa, cashew, citrus, oil palm, cotton, and

rubber. The livestock subsector produces cattle, sheep, goats, and pigs. Popular inland fish

species, mainly sourced from the Volta Lake, include tilapia, African perch and bagrus.

Floriculture (cultivation of exotic flowers) is a growing industry in Ghana.56

Both the Ghanaian people and economy are highly dependent on these industries.

Approximately 15.7% of Ghana’s GDP is derived from the agriculture industry 57 and the

livelihoods of most Ghanaians rely on this sector58.

Despite the vast agricultural production in Ghana, Ghana remains a net food importer,

importing over US$500 million of rice alone annually along with large amounts of chicken, meat

and other dairy products.59 Further, only 10,000 hectares of viable, irrigable lands out of a

potential of 346,000 hectares is currently being utilized.60 This excess land and local market

demand implies significant opportunity in Ghana for agricultural development across these

industries.

To capture this opportunity and promote sector growth, Ghana’s agricultural sector must

address several challenges. The industry must adapt to the growing threat of climate change.

An economic model developed by the World Bank Group estimates that agricultural GDP is to

decline by 3 to 8 percent, not expand, by the middle of the 21st century, relative to baseline

projections, and indicates that losses in the sector could be as much as $122 million per

annum.61 Small-scale farmers and women will be most affected by climate change because

they are highly dependent on rain-fed crops for their livelihoods. Small-scale farmers, account

for about 80% of domestic production, and women, produce 70% of Ghana’s subsistence crops,

account for 52% of our labor force and contribute 46% of Ghana’s total GDP.62

Sector modernization will also improve agricultural output. Currently, there exist poor storage

facilities for raw materials and processed foods, and a lack of modern processing equipment. In

the crop industry, there is limited availability of improved technological packages, especially

planting materials and certified seeds by farmers. In the livestock industry, poor management

practices (feeding and healthcare) result in low productivity, although the meat processing

industry has witnessed significant growth since the 1990s with foreign companies. This

modernization must be developed in parallel to education, training and financing schemes.

Technical know-how is lacking amongst food processors and there is inadequate funding and

commitment to agricultural research.

In the fishing industry, the major challenge is over fishing, which is leading to a depletion of fish

stock. This over fishing is being blamed on the fact there is no policy framework to promote the

56 "Ghana's Business Development Profile". Danida Business Partnerships. March 2013 57 As of 2011 http://www.mzz.gov.si/fileadmin/pageuploads/foto/1206/PP_Gana.pdf 58 World Bank Indicators, 2011 59 http://ghana.um.dk/en/~/media/Ghana/Documents/DANIDA%20Ghana%20BD%20Profile.ashx 60 http://www.mzz.gov.si/fileadmin/pageuploads/foto/1206/PP_Gana.pdf 61 "Economics of Adaption to Climate Change". World Bank. 2010 62 "Netherlands Climate Assistance Program Ghana Country Report". W. Kojo Agyemang-Bonsu, B. Dougherty, A. Fencl, E.

Kemp-Benedict". July 2008

Page 34

long-term sustainability of fishing resources. There are also insufficient surveillance and control

measures to counteract illegal fishing.63

There exist several government and private initiatives to address these challenges, open up

opportunities and thus strengthen the agricultural industry. Improved agricultural productivity, for

example, is a core focus of the Government of Ghana’s GSGDA. According to Ghana’s policy

framework, the main focus of their agricultural development, over the medium-term, will be to

accelerate the modernization of agriculture through the implementation of the Food and

Agriculture Sector Development Policy (FASDEP II) and the corresponding investment plan as

detailed in the Medium-Term Agricultural Sector Investment Plan (METASIP), which will ensure an

effective linkage between agriculture and industry.64

To address the rural populations who might be affected by climate change, the ‘Innovative

Insurance Products for Adaptation to Climate Change’ (IIPAC) project has been developed.

The primary goal of this project is to promote income security, food security, credit availability

and employment opportunities for Ghana’s rural population. The project is designed to enable

the insurance sector in Ghana to offer innovative and economically sustainable insurance

products against the financial risks caused by extreme weather events and variable

temperatures and precipitation. The project began in 2009 and will run until 2013. It received

financial support of 2.25M EUR from the German Federal Ministry for the Environment, Nature

Conservation and Nuclear Safety (BMU). It was implemented by GTZ in cooperation with the

National Insurance Commission (NIC) and the MoFEP.65

3.5 Deal flow analysis: Sample companies

Based upon the GCIC stakeholder engagement process the infoDev team identified a number

of companies that would be eligible for support from the Center. A sample of these enterprises is

presented below with company names removed. The full list is available in the Annexes.

Co. Sector Product Year

Founded Needs

1

Solar, wind,

reduction

service

LED bulbs, energy reduction

consumables 2012

Business advice; Technical advice;

Finance (soft loan); Education of

general public on benefits of solar

energy

2

Waste

Management

Waste Management (currently no

value addition) 2003

Financing; Technology improvement;

Land fill site

63 "Ghana's Business Development Profile". Danida Business Partnerships. March 2013;

Ministry of Food and Agriculture 64 "Ghana Shared Growth and Development Agenda (GSGDA), 2010-2013 Medium-Term National Development Policy

Framework". National Development Planning Commission (NDPC), Government of Ghana. December, 2010 65 "Initiatives related to climate change in Ghana towards coordinating efforts". L. Wu rtenberger, I.G. Bunzeck, X. van

Tilburg, Energy Research Center of the Netherlands (ECN). April 2011

Page 35

3

Solar Energy

(off-

grid/distribution

solar PV)

Modules, charge controller,

inverters, batteries, led bulbs 2010

Public education; High cost of solar

products; Limited financial support for

green energy sector; Improvement of

efficiency

4 Renewable

Energy

Solar panels, and accessories,

batteries, controllers, bulbs,

inventers, etc 2002

Capacity development in financial

management, capacity development

of HR, access to customers, subsidy of

solar products, office space (own)

5 Renewable Solar products and accessories 2006 Financing

6 Agribusiness

and

Environment

Development and research,

knowledge management, rural

development and production of

rice, maize and soya

Crop specific and soil fertility issues, pest

and diseases (reducing effect of stringa,

a parasite weed), extending technical

support to farmers, initial working capital

needs

7

Renewable

energy (solar

and wind) Off grid solar and wind farms 2003 Funding; Low tariffs and subsidies

8 Renewable

Automated voltage regulators,

automated power management

solutions, invertors, solar panels

and accessories 2010 Clients (customers)

9

Sustainable

agriculture

Chemicals to clean and disinfect

milking equipment, mastitis

control systems which include

licensed chemicals and

application systems, detergents

and disinfectants to help provide

a high standard of hygiene in

animal rearing and reduce the

risk of disease, etc 2001 More networking platforms

10

Renewable

energy

Research, microfinance and

advocacy 1976

Capacity building; Long term

sustainable projects

11 Waste

Recycling

Plastic granules from plastic

bottles and water sachets for the

local market and export 2008

Low interest financing for working

capital to collect plastic waste and

operations, Funding for trucks and

logistics

12 Sustainable

Agriculture Organic fertilizer 2002

Funding for expansion (second plant),

logistics (vehicle to transport waste and

technical assistance (handling of fecal

sludge)

13

Energy

efficiency, Off-

grid/distributed

Solar PV, waste

- to- energy

LED bulbs, solar lantern, solar

home system, anti-theft reflect,

plastic waste recycling 2010

Education of general public about the

long term benefits of solar

Page 36

3.6 Stakeholder Analysis

Throughout its engagement process, infoDev conducted a stakeholder analysis of the identified

climate technology sectors and across the climate innovation value chain. A significant number

of stakeholders already working in these sectors were identified. The GCIC will engage

collaboratively with a broad range of such stakeholders and build upon existing efforts,

knowledge and synergies, and will complement rather than compete with existing activities. The

following section outlines in detail the current climate technology stakeholder landscape in

Ghana, including:

R&D

Government

Universities

Business Incubation

Industry – Large

Industry – Small

NGOs

International Inst.

Financiers

3.6.1 Sector Mapping Matrix

The below table provides a sample of some key stakeholders operating in climate technology

sectors in Ghana:

Renewable

Energy

Energy

Efficiency

Sustainable

Agriculture

Water

Supply

Domestic

Waste

Management

Transport Improved

Building

Design

R&D/

Institution

Institute of Industrial

Research


Research

Oil Palm Research

Institute, Cocoa

Research Institute,

Crops Research

Institute, Savanna

Agricultural

Research Institute,

Oil Palm Research

Institute, The Water

Research Institute

Building & Roads

Research Institute


Research

Government Ghana Atomic

Energy

Commission,

Ministry of Energy

Public Utilities and

Regulatory

Commission*

Independent body,

The Ghana

Standards Board,

Energy Commission

Ministry of Food

and Agriculture,

Ministry of Lands,

Forestry & Mines,

Ministry of Local

Government and

Rural

Development,

Ministry of Women

& Children's Affairs,

Noguchi Memorial

Institute for Medical

Research

Ministry of Tourism & Modernization of The Capital City, National Development Planning

Commission, Town and Country Planning Department, Ministry of Road Transport, National

Development Planning Commission, Town and Country Planning Department

Council for Scientific and Industrial Research, Environmental Protection Agency, Ghana Science Association, Ministry of Energy & Petroleum,

Ministry of Environment, Science, Technology & Innovation, Ministry of Finance of Economic Planning, Ministry of Private Sector Development,

Ministry of Trade & Industry

Universities The University of Ghana, Kwame Nkrumah University of Science and Technology, The University of Cape Coast

Business

Incubators

Kumasi Institute of Technology, Energy & Environment- KITE, Ghana Multimedia Incubator Centre (GMIC), Meltwater Entrepreneurial School of Technology (MEST),

Creating Competitive Livestock Entrepreneurs in Agribusiness (CCLEAr) Agribusiness Incubator, Busy Internet's Business Incubator, Global Entrepreneurship Week-

Ghana, Accra StartUp Weekend- supported by the Kauffman Foundation

Industry SELI Technologies,

PTL

Enterprise,,Naiko

Eng, TREL, M38,

Energiebau

Sunergy Ghana

Ltd., African

Energy, Ramboll

Group A/S, Blue

Energy, Siginik

Energy Ltd, China

Henski Energy

Company Limited,

Toyola, SELI

Technologies, PTL

Enterprise,

Electricity

Company of

Ghana Limited,

Volta Aluminium

Company Limited,

Jatropha Africa Ltd

Zoom Lion, Waste

Enterprisers

Asadu Royal Waste

Management,

Bioland Limited, City

Waste Management

Co. Limited.

Golden Falcon

Company Limited, J.

Stanley-Owusu &

Company Limited,

Page 37

Wind Power, VRA

Voltaic River

Authority,

Addosolar Eco-

solar &

Construction Ltd,

Kupatech Ghana

Limited, Milky Way

Energy Limited,

Mundeco Ghana

Limited, UltraSolar

Energy Limited,

Wilkins Engineering

Limited, Atlas

Business and

Energy Systems,

NorthLite Solar

Limited, Solar Light

Co. Ltd. , EcoZone

Ltd.,,GRIDCo , NEK

(Ghana) Ltd.,

Electricity

Company of

Ghana Limited

GRIDCo

Energy Pool

Company Limited,

Trashy Bags

NGO Kumasi Institute of Technology and Environment - KITE,The Energy Foundation Ghana,TechnoServe,Community Water Solutions,MIT DLab

project

Centre for Energy, Environment, and Sustainable Development (CEESD)

Ghana Green

Buildings Council

Donors/ Int.

Partners

African Development Bank, Department for International Development, UK, Dutch Embassy, European Union, Federal Ministry of Environment,

Germany, Global Environment Facility, Government of Italy, International Development Research Centre, Canada, International Fund for

Agricultural Development, Ministry of Foreign Affairs of Denmark, Ministry of Foreign Affairs, Netherlands , United Nations Development

Programme, United Nations Environment Programme, United States Agency for International Development, World Bank

Financiers Venture Capital Trust Fund (Activity Venture Finance Co, Bedrock Venture Capital Finance Co, EbankeseVenture Fund, Fidelity Equity Fund II Ltd, Gold Venture Capital

Ltd),

Acumen Fund, Africa Capital, Aureos, GroFin, Harrath, Injaro, Jacana Partners, JCS Investments- The Goodwell Africa Fund, Phatisa, Commercial Banks, Rural Banks

3.6.2 Stakeholder Mapping Matrix

The graphic on the following page provides an overview of the activities of various existing

stakeholders in Ghana and the possible roles they could play as part of the GCIC innovation

value chain. The highlighted area designated the ‘CIC Business Focus’ represents areas where

gaps currently exist and where support from the GCIC will best assist business establishment and

development. It also indicates areas where partnerships and collaborative alliances will be

pursued in order to optimize the outcomes and help encourage the development of a long-

term, sustainable, climate change business support ecosystem.

Page 38

Key:

Existing Activities in Ghana Across the Innovation Value Chain

Proposed Ghana CIC Activities

Page 39

3.6.4 Leveraging existing initiatives

The GCIC would complement and leverage a range of existing initiatives in Ghana that support

climate related innovation. A complete listing with descriptions of these existing initiatives is in the

Annexes.

Initiative Implementing Institution(s)

IMPLEMENTING INSTITUTION: GOVERNMENT

Regulation, policy, strategy, infrastructure development & capacity building

National Climate Change Policy Framework The Ministry of Environment, Science, Technology &

Innovation, Government of Ghana

Ghana Shared Growth & Development Agenda National Development Planning Commission,

Government of Ghana

Renewable Energy Act, 2011 Ministry of Energy, Government of Ghana

National Science, Technology and Innovation Policy, 2010 The Ministry of Environment, Science, Technology &


National Environment Policy The Ministry of Environment, Science, Technology &


National Forestry Policy Ministry of Lands and Forestry, Government of Ghana

Several water policies Government of Ghana

CFL/ Incandescent bulb ban The Energy Commission

Transformation of Refrigeration Appliances Market Energy Commission

Reducing Emissions from Deforestation and Forest Degradation The Forestry Commission of Ghana

National Feed in Tariff The Energy Commission

Climate Change Enabling Facility (Capacity Building) Environmental Protection Agency

Climate Mitigation Action Investor Guide Environmental Protection Agency/ Ghana Investment

Promotion Center

Private Sector Development Strategy Government of Ghana

Trade Support Facility: Ghana Private Sector Development Fund

(GPSDF)

Ghana Ministry of Trade & Industry, Government of

Ghana

Natural Resources and Environmental Governance Programme Government of Ghana

Page 40

Volta Basin Water Resource Management Plan Water Resources Commission, Government of Ghana

Sustainable Land and Water Management Plan Water Resources Commission, Government of Ghana

Climate Change Adaption Project in Northern Ghana Water Resources Commission, Government of Ghana

Ghana Sustainable Rural Water and Sanitation Project Water Resources Commission, Government of Ghana

Forest Investment Programme Environment Protection Agency

Integrating Climate Change into the Management of Priority

Health Risks

Ministry of Health, Government of Ghana

Innovative Insurance Products for Adaptation to Climate

Change

GTZ, National Insurance Commission of Ghana

Climate Change and Human Health in Ghana Regional Institute for Population Studies

Hydrochloroflourocabon HCFC Phase Out Management Plan

(HPMP)

Energy Commission

Pilot Demonstration Project on Ozone depleting substances,

waste management & disposal

Environment Protection Agency, Energy Commission,

Centre for Rural and Industrial Research

Ghana Urban Transport’ Project Department of Urban Roads, Government of Ghana

Promotion of the consumption of Liquefied Petroleum Gas Government of Ghana

Establishment of Cleaner Production Center Environment Protection Agency

Ghana Energy Development and Access Project Ministry of Energy, Government of Ghana

Technology Needs Assessment The Ministry of Environment, Science, Technology &


National Climate Change Policy (draft) Government of Ghana

National Housing Strategy Environmental Protection Agency, Ministry of Water

Resources

Environmental Sanitation Policy 2010 Environmental Protection Agency

AMA by-laws on Waste Management and Environment Accra Metropolitan Assembly (AMA)

IMPLEMENTING INSTITUTION: UNIVERSITIES

Research & capacity building

Building Stronger Universities Kwame Nkrumah University of Science and

Technology/ University of Ghana

West African Climate Centre WASCAL, Kwame Nkrumah University of Science and

Technology

Page 41

Building Capacity to meet the Climate Change Challenge University of Ghana

IMPLEMENTING INSTITUTION: DONOR

Policy and strategy support, capacity building & research

Climate Change and Development Adapting by vulnerability United Nations

Economics of Adaption to Climate Change World Bank

IMPLEMENTING INSTITUTION: OTHER

Strategy, capacity building, research & project development

Moving towards an emissions neutral development Ecosecurities Ltd.

CARE Adaptation Learning for Africa CARE

The Energy Foundation Ghana Energy Foundation

The Centre for Energy, Environment, and Sustainable

Development (CEESD)

CEESD

The Meltwater Entrepreneurial School of Technology (MEST) MEST

Kumasi Institute of Technology, Energy & Environment- KITE KITE

Ghana Multimedia Incubator Centre (GMIC) GMIC

Creating Competitive Livestock Entrepreneurs in Agribusiness

(CCLEAr) Agribusiness Incubator

Agribusiness Incubator

TechnoServe TechnoServe

Community Water Solutions Community Water Solutions

IMPLEMENTING INSTITUTION: PRIVATE SECTOR

Infrastructure development, technology development

2MW Solar PV Project Volta River Authority

Wind Power Plant Volta River Authority

Page 42

4.0 Climate Innovation Gaps and Needs

Analysis

4.1 Gaps and Needs Assessment Process

Ghana must develop five critical support systems in order to successfully develop and deploy

local innovations: 66

Technology: Supporting local and adapted technology and business model innovation.

Entrepreneurship and venture acceleration: Building existing private sector capacity and

creating a pipeline of high-impact new ventures.

Finance: Facilitating access to flexible sources of finance for product development and

early company growth.

Market: Creating new and expanding local, regional, and global markets.

Policy: Informing, inter-linking and influencing innovative policy mechanisms.

Over a 6-month process, infoDev engaged over 250 climate technology stakeholders in Ghana

to identify the gaps in each core area that hinder climate and clean technology innovation.

From two major workshops in Accra and three focused group discussions held in Kumasi in the

Ashanti Region, Takoradi in the Western Region and Tamale in the Northern Region, key

stakeholders in the climate and clean technology sector in Ghana identified the main gaps in

each of the five core areas and proposed solutions to the gaps.

66 Adapted by infoDev from The Carbon Trust

Five core areas of innovation development where gaps were identified

Technology Journey

Basic and Applied

Research

Development and

demonstration Scale-up Commercial

Company Journey

Individual Start-up Growth Established

Finance Journey

Government/ Charity

Venture Financing

Credit (Debt)

Markets

Public Equity Markets

Market Journey

Technology Push

Benefit quantified

Market Pull Feedback

Policy Journey

General Regulation

Sector Regulation

Technology Specific

Regulation

Comprehensive

Framework

Page 43

A total of 110 respondents completed online surveys out of the 155 stakeholders sent the survey

by infoDev, representing a 71% response rate. The survey identified and prioritized the gaps in

each of the five core areas (technology, company growth/ entrepreneurship, access to

finance, market transformation and policy). The responses from the online survey enabled the

GCIC team to empirically validate the important issues and priorities for each specific innovation

gaps.

From the review of two stakeholder workshop outcomes, regional focused group discussions,

survey data and follow-on interviews, the GCIC team developed a comprehensive overview of

the gaps in the climate technology and

clean energy sector and identified

interventions needed to address the

gaps. These underscored the business

case for the GCIC and informed the

design of core activities, programs and

services that should be delivered by the

Center.

The case study examples included in this business plan are real life examples that demonstrate

specific gaps and opportunities under each of the five core areas.

4.2 Entrepreneurship and Venture Acceleration Gaps and Needs

Key stakeholders in the climate and clean technology sector, including businesses, civil society

organizations, NGOs, and research institutions, as well as stakeholders focused on environmental

issues at large, demonstrate a strong passion and commitment to reduce the negative impact

of socio-economic activities. However, most firms and entrepreneurs in the sector are driven by

opportunities to earn attractive returns and achieve financial sustainability despite a secondary

focus on environmental preservation. Most of the firms and entrepreneurs express frustrations

and daunting difficulties in their quest to deploy viable business models. They therefore see

climate technology as a neglected sector that lacks appropriate policy support, human capital

and expertise and business financing. Lack of protection of intellectual property was cited as an

additional challenge facing entrepreneurs and investors in the sector who lose their rights to

innovative products they introduce.

The responses from the online survey provide detailed appreciation of the leading

entrepreneurial barriers facing stakeholders. From the surveys, the greatest entrepreneurship and

venture acceleration constraint for developing climate technology and clean technology

businesses is the difficulty in accessing appropriate business financing. 74% of the survey

respondents rated this as a major issue by strongly agreeing. An additional 22% of respondents

agreed to this. The second most important constraint is insufficient policies support for the

creation of small and medium enterprises. 35% of respondents affirmed this by strongly agreeing.

Other gaps considered to be constraints included high cost of business advisory services, high

cost of office space and business incubation facilities and inadequate capacity of

entrepreneurs.

Programs and services of the GCIC are formulated as solutions

to stakeholder’s needs.

Page 44

Gaps % Strongly

Agreeing

%

Agreeing Needs

Difficulty in accessing

appropriate business

financing

74% 22% Availability and access to business financing

Insufficient policy support in

the creation and growth of

small and medium

enterprises

35% 50% Supportive policy environment for the

protection of Intellectual Property (IP)

High cost of business

advisory services

29% 41% Availability of accessible advisory services for

clean technology enterprises and investors.

High cost of office space

and business incubating

services

28% 40% Availability of incubating facilities, equipment

and laboratory for testing and prototyping

Inadequate management

capacity of entrepreneurs

28% 40% Availability of trained human resource and

expertise in clean technology

Case Study: Entrepreneurship Gap

Global Farmers Wives Association: Accra, Ghana

Global Farmers Wives Association is an association of farmers with over 500 members who are

involved in cluster farming in the Central, Northern and Volta Regions of Ghana. The

Association applies innovative clean environmental techniques to farming with the view to

increasing yields, reducing dependency on the weather and producing healthy farm

produce.

Led by one of its members, Dr. Papa Arko Arkhurst, an entrepreneur, the Association, seeks to

introduce simple and sustainable aquaponic systems, a closed agriculture system, which

combines hydroponics and aquaculture (water based gardening and fish cultivation). This

system requires no soil and it is 3 to 9 times more productive than the traditional farming

practices and requires a third or less of the man-hours when compared to traditional farming

systems.

Aquaponics is purely organic and works best for the production of vegetables and fish.

Among the benefits, it reduces dependence on land, water and fertilizers. It also relies to a

large extent on local content as most of the components of the aquaponics systems are

available locally. Among its benefits, the system reduces the length of time it takes for

vegetables to mature for harvesting by over 50% and requires no pesticides.

The biggest challenge is lack of opportunity for technical assistance to migrate the concept

to production stage with appropriate funding provided. The Association estimates an initial

investment requirement of US$15,000 for implementing the aquaponics system on a 0.5

hectare land.

Page 45

4.3 Access to Finance Gaps and Needs

Existing studies such as the "SME Finance Innovation Framework in Ghana" by A2F Consulting

(2012) demonstrate that lack of financing is a major challenge facing the SME sector in Ghana.

Several initiatives such as the Private Sector Development Strategy II identify access to finance

as a priority for SME development in Ghana. From the stakeholder consultations, access to

finance is particularly difficult for clean technology enterprises due to their specific attributes. For

example, climate and clean technology products require long incubation periods and the time

between conception and commercialization makes it unattractive to financial service providers.

There are also limited avenues for start-up capital. Additionally, the high opportunity cost of

capital -- such as the high interest rates offered by financial instruments including treasury bills --

poses funding difficulties for these start-ups. High collateral requirements by banks, high cost of

loans and the lack of avenues for "patient" investment capital, further constrains funding of

climate and clean technology enterprises.

From the survey responses, 73% strongly agree that the high cost of debt/small business loans is

the leading financing barrier for climate and clean technology enterprises. An additional 20%

agreed to this. This is followed by the high collateral or personal equity requirements. 64% of

respondents strongly affirmed this, with an additional 32% agreeing. Another major financing

barrier is the difficulty in accessing international financing sources which normally come at lower

rates of interest. 61% of respondents affirmed this by strongly agreeing. An additional 28%

agreed to this. Difficulties in obtaining grants to undertake climate technology project was also

listed as a major constraint (59% of respondents affirmed this by strongly agreeing) followed

closely by the lack of investors' interest in early-stage technology ventures (with 57% of

respondents strongly agreeing).

In terms of the magnitude of funding gaps, 30% of the online survey respondents identified the

USD 750,000 to USD 3.0 million as the leading funding gap range most critical to business and

entrepreneurs in the climate technology and clean energy sector. The next most funding gap is

in the range of USD 250,000 and USD 750,000 according to 26% of the online survey respondents.

This is followed by the USD 3.0 million and above funding gap (20% of online survey respondents)

and then the USD 50,000 and USD 250,000 funding gasp (18%).

Gaps % Strongly

Agreeing

%

Agreeing

Needs

High cost of debt/small

business loans

73% 20% Moderate cost of borrowing and business

loans for clean technology entrepreneurs

High collateral and personal

equity requirements for loans

operations

64% 32% Friendly borrowing terms and conditions by

financial institutions

Difficulty in accessing

international sources of

financing

61% 28% Access to financing on the international

financing market which have moderate

interest rates

Page 46

Difficulty in obtaining grants

to undertake climate

technology projects

59% 33% Availability of early-stage technology investors

Investors are not interested in

early stage climate

technology projects

57% 35% Access to "patient" capital and seed

financing during conception stage.

4.4 Market Growth and Access Gaps and Needs

For entrepreneurs and investors, the appeal of each sub-segment of the climate and clean

technology sector is dependent on the existence of a sizeable market that can be captured by

their respective ventures. This assures the commercial feasibility to deploy the appropriate

products and services. However, in Ghana, most of the firms and entrepreneurs consulted

expressed concern that the lack of a vibrant market was one of the barriers that needs to be

addressed for the sector to expand and grow progressively. The limited growth in the market for

climate and clean technology products and services in Ghana has been attributed to the

relatively high cost of these products when compared to the prices of traditional substitutes. This

challenge is exacerbated due to the end consumer’s lack of purchasing power and financing

options to afford clean technology solutions. The high cost of inputs is generally cited as a major

issue, which emanates from the fact that a large component of the inputs for climate and clean

Case Study: Finance Gap

Gbi Hanjer Ghana Limited:

Gbi Hanjer Ghana Limited is a waste management company seeking to establish an

integrated multi product waste recycle and resource recovery plant in the country. The plant

will have an installed capacity of 2,000 mt per day and is to be located at Danfa in the Ga

East Municipal to the North-East of Accra.

The key benefits of the project includes the reduction of the land for scientific landfill with

processed remnant, reduction of financial burden for solid waste disposal on urban and local

bodies and the prevention of underground water contamination. Others are reduction of air

pollution, reduction of health problems around the solid waste dumping ground while all

products extracted and processed will be eco-friendly.

The Company has negotiated with Ministry of Energy and was granted the right to produce

100MW of energy from waste. Memorandum of Understanding (MOU) and Letter of Interest

(LOIs) and other permits have being signed with various Assemblies within the metropolis to

secure their waste for the project.

Despite completing all the pre-work including preparation of a feasibility report, the project

has not been implemented as a result of lack of funding, high investment cost for clean

technology projects, high cost of input and lack of the requisite financing for the project

implementation.

Page 47

technology products are imported and require foreign exchange. For example, with the

exception of labor cost for assembly, most other inputs for solar solutions and products are

imported. The potential market and consumers of these products are often in the rural areas

where poverty remains a challenge. Therefore they generally lack the purchasing power to

swap the current traditional energy products, such as kerosene lanterns, for solar lamps while the

prices remain high. Thus the high cost of climate and clean technology products is a

disincentive to rural people in the absence of incentives and subsidies, such as the tariff lifelines

currently enjoyed by low-end consumers of electricity in Ghana. Additionally, there are other

challenges including a generally poor knowledge of climate and clean technology products,

which arises from low awareness creation and dissemination of information on clean

technology. Cultural barriers and resistance to change contribute to the low market uptake of

these products as well.

The rankings of the leading barriers in the climate and clean technology sector are fully

expressed by stakeholders by their responses in the online surveys. The greatest market constraint

is the high cost of climate technology and clean energy products and services, especially for

low income consumers. 68% of respondents affirmed this by strongly agreeing to this fact. An

additional 23% of respondent support this, bringing the total agreeing to this to 91%. The next

critical market constraint is lack of consumer credit which make it difficult for potential

consumers to actualize the purchase and use of these products. 43% of respondents strongly

agreed to this, supported by an additional 42% of respondents. Other constraints include local

entrepreneurs lacking global links (37% of respondents strongly agreed to it, and affirmed by an

additional 42%). Other constraints are low quality of clean tech products (affirmed strongly by

33% of respondents) and limited knowledge of potential clean tech market (affirmed strongly by

27% of respondents).

Gaps %

Strongly

Agree

%

Agreeing

Needs

High cost of clean technology

products and services,

especially for low income

consumers

68% 23% Lower input cost of clean technology

products and services to make them

affordable to low income consumers

Lack of consumer credit for

clean products and services

43% 42% Availability of consumer credit to stimulate

demand for clean tech products

Local entrepreneurs lack links

to global markets

37% 42% Knowledge and facilitation of local

entrepreneurs to global markets

Low quality of clean

technology products creates

consumer mistrust

33% 42% Production of high quality clean tech

products and services to maintain consumer

confidence

Limited knowledge of

potential clean technology

markets

27% 58% Local market that has knowledge and well

informed about clean tech products and

services

Page 48

4.5 Technology and Product Development Gaps and Needs

These barriers affect access to the appropriate technology and technical assistance for existing

entrepreneurs in climate and clean technology businesses, as well as discourage new investors

and entrepreneurs from entering the sector. Stakeholder interviews and discussions conclude

that a lack of incubation facilities makes it difficult for most promising ideas to transition into

viable business models. Generally, the perception is that the use of incorrect or substandard

technologies is responsible for the failures of most start-ups in the sector. The use of substandard

and poor technology in the sector has been linked to the high cost of quality technology and

the inability of most entrepreneurs to access technical support internationally due both to their

small size and the cost implications. Technical assistance is currently not available to a large

number of firms. Furthermore, in instances where it is available, it is not accessible to most of

entrepreneurs. Without a means to address the challenges surrounding technology and product

development, entrepreneurs and start-ups will remain frustrated and unable to develop

competitive, market-ready business models.

Most of these barriers have also been validated by the responses to the online questions that

identified nine technology barriers that undermine the development and growth of the climate

Case Study: Market Gap

Daagift Ventures: Bridging the market gap

Daagift Ventures is a renewable and energy efficiency company based in Takoradi in

Ghana. The venture was registered in 2006 by Gifty Asmah, a banker and entrepreneur.

Daagift supports women groups to construct improved local stoves with chimneys and

also switch from kerosene to solar lamps. Despite successfully introducing solar lamps to

the communities, the huge needs expressed have not translated into market demand for

the solar lantern products. The main reason is the high initial switching cost from kerosene

lanterns to solar lamps.

As part of its effort to stimulate the market and demand for the solar lamps, Daagift

proactively initiated a process of facilitating access to micro-credits (end-user/consumer

financing) to members of women groups to purchase solar lamps. However, due to the

difficulties in accessing micro-credit, the market's potential is not fully realized.

The main challenge facing the venture is the general absence of advocacy, awareness

creation and information dissemination program to adequately inform the general public

and rural communities on the need to switch to renewable energy.

In addition to the above, there are regulatory constraints, such as the lack of renewable

energy subsidies in the renewable energy subsector (as currently exist in a form of

electricity lifeline) to motivate consumers to switch to renewable energy.

As a result of the above, the market has therefore not grown exponentially to support a

financially viable business case for the venture under the current situation.

Page 49

technology sector in Ghana. Five of these barriers have been ranked as priority by stakeholders

and account for 61% of total responses.

The main technology barrier to the development of suitable climate technologies and clean

energy businesses in Ghana is lack of financing. 64% of survey respondents strongly affirmed this

with an additional 25% agreeing that financing is a major technology barrier. High import duties

and cumbersome custom procedures are also seen as a major challenge. Out of the 85%

respondents who affirmed this, 55% strongly agree to this with the remaining 30% also agreeing.

The third greatest technology barrier strongly expressed by 48% of respondents is limited

collaboration between industry and technology institutions/academia. Another 42% of

respondents affirmed this view. The high cost of clean technologies over traditional

technologies are strongly expressed by 46% of respondents and the lack of access to R&D being

also an important technology barrier are strongly expressed by 45% of respondents.

Gaps

%

Strongly

Agreeing

%

Agreeing Needs

Lack of financing for technology

projects

64% 25% Availability of financing for clean

technology projects

High import duties and

cumbersome custom procedures

for technology components

55% 30% Tax relief on import duties for climate

technology and clean energy products

Limited collaboration between

industry and technology

institutions/academia

48% 42% Strong collaboration between industry

and technology institutions/academia

Clean technologies are too

expensive to compete with

traditional technologies

46% 28% Reduced prices of climate technology

and clean energy products to compete

with traditional products

Lack of in-country technical

knowledge and expertise

45% 42% Availability of Technical Assistance and

R&D equipment and laboratory

(testing/prototyping)

4.5.1 Business Model Innovation: Importance for Ghana

It is important to note that while the Ghana CIC’s mission is to support the commercialization

and scale of emerging technologies, much of the innovation opportunity in Ghana will be a

result of new business models. This will involve addressing non-technical related barriers to

deployment of existing and adapted technologies. Such interventions could include innovation

in distribution models, marketing and business development, cost structures, consumer financing

and production processes. With a stronger focus on financing and support to business model

innovation and the localization of existing technologies, the CIC can have a greater impact on

rapidly deploying new products and services that will address the challenges faced by the

under-served rural and low income households in Ghana.

Page 50

4.6 Policy and Regulatory Gaps and Needs

The policy barriers facing the climate and clean technology sector in Ghana cover a broad

spectrum of policy gaps as well as weaknesses in regulation and enforcement arrangements.

The identifiable policy barriers include limited governmental support of the sector (such as

government funded incubation facilities and technical support to the sector), inadequate

budgetary allocation to implement policies, absence of subsidies and high taxes on imported

inputs for climate and clean technology products. These issues coupled with inadequate

regulatory enforcement (e.g., exemption of import duties on clean technology products such as

solar panels) and poor coordination among MDAs (leading to duplication of resources) pose

challenges for the development and growth of the sector. Other challenges arise from the non-

enforcement of the Local Content Bill which seeks to protect local SMEs. In the absence of a

common platform the stakeholders in the clean technology sector lack a united voice to

effectively engage government on policy and regulatory issues. Most firms and entrepreneurs

view the policy and regulatory gaps as overarching and the most important barriers that need

to be resolved if the sector will experience incremental development and growth.

According to the survey, the leading policy challenge facing climate and clean technology

enterprises in Ghana is the lack of government initiatives supporting the private sector to deploy

climate technologies. 65% of the survey respondents strongly affirmed this with an additional 28%

of respondents agreeing. The non-implementation of policies was seen as a major challenge,

which emanates from the fact that there is inadequate budgetary allocation for implementing

clean technology policies. A total of 57% of respondents see this as a major challenge, a position

affirmed by an additional 35% of respondents. Limited coordination across ministries within the

Case Study: Technology Gap

Wistech Solar Technology:

Wistech Solar Technology was established in 2006 and is engaged in solar energy, water

management and purification segment of the clean technology sector and serves clients

mainly in the Upper East, Upper West, Northern and Volta Regions. The Company, with the

assistance from the World Bank, developed a business plan which enabled it to established

two solar mobile phone charging centers in two rural communities in the Northern Region. The

two centers serve over 100 rural community members.

Currently the company procures its solar energy systems including solar panels, batteries,

pumps, pump controllers, invertors, etc from wholesalers and retailers in Accra which makes

prices of the products of the Company slightly more expensive than its comparators in the

sector and for most people within the catchment area of the Company. The company seeks

about USD 200,000 to enable it to find appropriate products to directly import from abroad

which will make the prices more competitive and enable the Company to expand its

operations within the Northern Regions to the neighboring countries including Togo, Benin and

Burkina Faso.

Page 51

government on clean technologies was also seen as a major challenge with strong affirmation

by 48% of respondents. 38% of respondents were in agreement of this. The other two challenges

identified were unfavorable taxation policies to new clean technology industries and non-

implementation of laws and regulations. Whilst 44% of respondents strongly agreed that taxation

policies were unfavorable to new clean technology industries, 40% strongly agreed that non-

implementation of laws and regulations undermined the development and growth of the

climate and clean technology sector.

Gaps % Strongly

Agreeing

%

Agreeing

Needs

Lack of government initiatives

for private sector to deploy

climate technologies

65% 28% Cross governing bodies (including private,

public, government and societal

stakeholders).

Provision of subsidies to consumers of clean

tech products. e.g., subsidies on switching

costs

Inadequate budgetary

allocation for implementing

clean technology policies

57% 35% Short, medium and long-term policy

reviews needed.

Cross-sectional consumer approach

needed

Limited coordination across

ministries within the government

on clean technologies

48% 38% Coordination of clean tech programs and

interventions across MDAs to streamline

efforts for efficiency, effectiveness and

higher impact

Taxation policies do not favor

new clean technology

industries

44% 34% Tax incentives and supporting policies to

attract private sector into the clean tech

sector

Non-enforcement of 40% 40% Enforcement of climate technology and

clean energy laws and regulations

Page 52

5.0 Climate Innovation Center Model

5.1 Overview of CIC services

The custom-designed CIC model for the Ghana CIC is based on the gaps and challenges

identified through the stakeholder engagement process. These efforts included a concept

validation workshop, a landscape and market analysis, a preliminary budget model, a

quantitative survey of entrepreneurs and other stakeholders, and in person interviews and

focused group discussions with stakeholders in Accra, Kumasi, Takoradi and Tamale. The model

was developed in collaboration with local stakeholders to specifically address the identified

gaps across the five priority sectors through the following initiatives:

Building a pipeline of high-impact new ventures through the provision of Proof of Concept

funding to test the commercial viability of select climate solutions.

Supporting the iterative testing and prototyping of these solutions through access to

technical facilities and services.

Accelerating access to financing for local climate technology companies through the

provision of early growth-stage capital and investment facilitation and syndication.

Supporting the accelerated growth of climate-tech businesses and entrepreneurial

capacity through providing technology-enabled business development services,

networking, mentoring and training programs.

Identifying and developing local, regional and international market opportunities for

innovative climate solutions through facilitating trade and export opportunities and the

provision of needed sectoral and market information.

Influencing and advocating for policy coordination and change through creating better

dialogue and linkages between the public and private sectors.

The GCIC model has been developed in consideration of the above objectives and aligned

with areas of need. The vision for the GCIC is to provide a holistic range of programs and support

services that ensure local challenges to climate innovation are addressed, while also

coordinating and leveraging related activities in Ghana at the national, regional and

international levels.

Based on these objectives, the model for the GCIC is built around five main components, each

of which will support the delivery of various programs that stakeholders have identified as being

essential for successfully developing climate-tech businesses. The model diagram below

illustrates the core programs and service lines.

Page 53 Page 53

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Ghana CIC Model

5.2 Regional Engagement

While setting up its main operations in Accra or another major city, the Climate Innovation

Center expects to heavily engage in the regions of Ghana, where much of the Ghanaian

population and resources for green growth are located. This regional focus will also allow the

GCIC to increase its focus on rural and peri-urban populations where much of the country’s

poverty is concentrated. Accordingly, the CIC will create partnerships with regional entities. The

CIC will initially focus on developing operations in the regions surrounding Accra, Kumasi,

Takoradi and Tamale. This will be largely executed via partnership arrangements with existing

organizations. The development of regional partnerships that can serve as launching pads and

sources of market information for GCIC companies as they expand throughout Ghana will be an

important function of the GCIC. These partners will be prioritized by their ability to provide

distribution access and market information among other criteria.

+ Proof-of-concept grants up to USD 50k + Direct Seed Capital Investments (debt/equity) from USD 50k-1m + Facilitation of commercial investment

+ Advocacy with government on climate tech policy issues + Research on sector policy trends and best practice + Policy dialogues, roundtables and events

+ Research and analytics on markets, competitors and sector trends

+ Export promotion program + Technology quality and performance information and

database

+ Access to technical facilities and services to design, prototype, test and demonstrate products

+ Commercialization program for universities and research institutes involved in climate tech R&D

+ Business advisory, mentoring, access to professional services + Technical training and skills development + Seminars, events and networking opportunities + Office space and services for entrepreneurs and start-ups + Women’s entrepreneurship program

Ghana Climate

Innovation Center

Access to

Finance

Entrepreneurship and Venture Acceleration

Market Growth and Access

Policy & Regulatory

Support

Technology and Product

Development

Page 54

5.3 Women’s Entrepreneurship

In addition to the gaps identified above, there are significant barriers to empowering women

and girls to reach their potential and become leaders in climate technology innovation. Since

this issue cuts across all of the aforementioned gaps, gender will be a central theme

mainstreamed across the activities of the CIC, to ensure women and girls participate and

benefit from the Center’s services.

Additionally, a targeted women’s entrepreneurship program will be managed under the

Entrepreneurship and Venture Acceleration service line. Activities will include women in business

networking events and seminars, as well as targeted outreach to women entrepreneurs.

Women’s Climate Innovation Context

If given the chance, women and girls can be major contributors in developing innovative

climate change mitigation and adaptation technologies, and investing in women and girls

can bring significant gains to their families and local communities. Studies have shown that in

many cases returns to female education in terms of wages and GDP are actually greater

than for males, suggesting that women and girls contributions to the workforce are a vast

untapped resource in terms of development.1 Unleashing the potential of women and girls in

the fight against climate change results in a win-win situation in terms of using all our resources

to find solutions to the environmental problems we face, as well as breaking down gender-

based exclusion - a necessary precondition for sustainable, people-centered development.

Given that there are benefits to entire communities in enabling women and girls to reach their

potential, it is also important to recognize that they are likely to be more adversely affected

by climate change than men and boys, due to their limited access to resources, restricted

rights and lack of voice in decision making. Further, when climatic events impact household

income, girls are often required to leave school to bring home additional money. With little

choice of workplace due to lack of education, this can lead them to exploitative work

environments. 1 Recognizing these effects and ensuring women’s voices are heard in

establishing the solutions to these problems through designing and implementing climate

technology development programs, is necessary in ensuring equality-based development.

Taking a gender-based approach to development focuses on the institutions and systems

that determine gender roles and responsibilities, such as access to and control over resources,

and decision making potential. Designing programs using a gender sensitive method should

also include activities involving men and boys, which is important for changing behaviors and

cultural attitudes towards women. Gender mainstreaming allows for attention on gender

perspectives to be prevalent throughout the entire program design.1 Targeted activities to

promote women and girls’ empowerment however, can also be carried out in parallel with

gender mainstreaming efforts to help remove the initial imbalances.

The GCIC will therefore take a hybrid approach of targeted programs and gender

mainstreaming, while putting monitoring programs in place and requesting feedback from

women entrepreneurs in the CIC. This will inform regular evaluations of the CIC, and as a

result, gender-focused strategies will be adapted as required.

Page 55

5.4 CIC Service Lines

The following section provides further details relating to the programs within each of the five

components in the GCIC model. For each of the components an outline of the specific

activities, their functions and the needs they address (as identified in Chapters 3 and 4 of the

business plan) is provided.

5.4.1 Component 1: Entrepreneurship and Venture Acceleration

Entrepreneurship and Venture Acceleration is a set of CIC services to assist entrepreneurs to turn

an idea into a viable business or to scale up an existing business or business line. This would

include mentorship from established professionals, business and technical advisory from CIC staff

or third party experts, seminars and networking events, technical and business training programs

and provision of office facilities to select SMEs. Some of these activities would take place on site,

while others would involve varying degrees of distance or virtual learning.

Program Activity Needs Addressed

Business

Advisory,

Mentoring and

Access to

Professional

Services

Mentoring and incubation: Hands on mentoring of

entrepreneurs by experienced professionals is one of

the most effective means of supporting new ventures.

Business mentoring and incubation support - both in-

house and outsourced – will be available at the CIC to

assist with pre-company formation, professionalization

and venture acceleration.

Technical assistance provided to CIC companies by

external experts: This activity would allow CIC

companies to avail partner service providers with

specific guidance (business or technical) to support

venture creation and business development, using

packaged services provided on a case-by-case basis,

from accredited service providers who have required

expertise. The GCIC would formalize partnerships with

TA organizations.

Toolkits: Access to toolkits such as the IFC SME toolkit will

be made readily available to entrepreneurs at the CIC.

Legal and Intellectual Property (IP): Advisory serves will

be available to better educate clients to identify,

protect and manage intellectual property.

To put in place a comprehensive

business incubation ecosystem and

support infrastructure for the entire

business development process

from proof of concept through to

business acceleration, specifically

geared to the climate-tech

businesses in Ghana.

A challenge for GCIC companies

will be the ability to recruit and

retain mid and senior-level talent

from both Ghana and abroad.

International and domestic

networks will be required to find

and train talent.

General lack of formal business

management training for

entrepreneurs including marketing

and accounting skills

Cost-effective access to specialist

learning and training in diverse

geographic locations on both an

on-demand or program basis.

Encouraging greater collaboration

and interactive learning,

networking and business

Page 56

development.

The provision of customized

technical support for local and

regional entrepreneurs delivered

by specialists who have a good

empathy with and understanding

of the local context and its

complexities.

To address the limited availability of

advice and expertise on business

development, accessing finance,

management and IP laws.

Technical

Training and

Skills

Development

Technical and business training: The CIC will deliver

training sessions and courses relating to various aspects

of climate technologies that are delivered to GCIC

businesses and affiliates both physically and virtually.

Environmental and performance

standards compliance and

marketability testing.

Environmental impact assessment.

Concept development and testing

(services).

To be able to readily assess the IP

status of various climate-tech

products and services being

developed or available within the

region.

The provision of customized

technical support for local and

regional entrepreneurs delivered

by specialists who have a good

empathy with and understanding

of Ghana and its complexities.

Seminars,

Events, and

Networking

Opportunities

Courses and seminars: The CIC will host specialized

seminars and events and facilitate networking

opportunities for CIC client companies as well as the

larger climate technology ecosystem. It will provide

access to seminars conducted or hosted by other

network partners when possible.

General lack of formal business

management training for

entrepreneurs including marketing

and accounting skills

Office and

Networking

Space

Access to facilities: Ideally, the CIC would be housed in

an existing incubator facility to provide space for start-

up companies and networking/meeting space.

To encourage greater

collaboration and interactive

learning, networking and business

development.

Identification of successful

cleantech entrepreneurs to serve

Page 57

as successful role models and

attract others into the sector

Women’s

Entrepreneurship

Program (in

addition to

mainstreaming

into CIC

Services)

Women in business networking events: Regular

meetings to build a community of like-minded women

climate tech entrepreneurs.

Targeted outreach to women entrepreneurs: The CIC

will target outreach and communications to women

entrepreneurs to ensure that the CIC builds a strong set

of women CIC clients.

Women’s entrepreneurship training: The CIC will provide

targeted training and seminars to empower women

entrepreneurs.

Limited adaptation of climate

technology solutions to the

everyday needs to women in

Ghana.

Lack of women entrepreneurs in

Ghana’s climate tech space.

5.4.2. Component 2: Access to Finance

Access to Finance is a set of CIC services that would provide entrepreneurs with several forms of

early stage financing. This would include Proof of Concept (POC) grants up to USD $50K to

support innovators or businesses to test the market potential of a promising technology, product

or process, direct equity or debt investments into SMEs up to USD $1m on commercial terms and

facilitation of investments from commercial sources such as banks and impact investors.

The Proof of Concept grants allow entrepreneurs and innovators with a business idea or

technical innovation to design, prototype and test market the innovation.

The Seed Capital Investments will provide the type of longer term “patient” risk capital that is

needed by growth oriented climate technology SMEs. This type of financing is generally

unavailable for SMEs in Ghana that do not meet the collateral and other requirements of banks

and need longer terms than banks offer.

"Drip model" of seed investment installments

Seed investments are envisioned to primarily be made in the range of USD 150,000-750,000 per

SME, at a rate of 3-4 new investments per year. In order to adequately monitor the use of funds,

the center would disburse the investments to the SMEs in installments based on agreed-upon

milestones. Actual disbursements of the funds for any single investment would therefore happen

over the course of 2-4 installments over several years. This model allows the investment manager

to cut off funding to unproductive investments in SMEs not meeting milestones and “drip”

additional funding into the most productive investments. The relatively high USD 1 million limit

envisioned for any single SME allows the investment manager to provide this level of funding if

necessary for any SME that grows rapidly.

Page 58


Proof of

Concept

Grants

Proof of concept (up to USD 50k) – Funding to allow

entrepreneurs to prove that a business idea/model is

feasible e.g. through product development,

prototyping and testing

Higher risk appetite capital with

longer time frame to support the

needs of a startup technology

company from proof of concept

through commercialization and scale

up

High risk proof of concept testing and

market buy-in funding support.

Access to commercialization grants to

pilot new technologies

Seed Capital

Investments

Seed investments (USD 50k - 1m) – Financing for start-

up companies to assist them to move from the PoC

stage to sustainability and/or to be able to attract

other sources of funding. Additionally the CIC will aim

to have the PoC grants feed into the seed capital

investment stage. Ideally an annual ratio of 7 PoC

grants to 3-4 seed investments.

Long term patient capital suited for

the longer timeframe that matches

technology companies’ needs

Many financial institutions are still wary

of the clean tech sector due to a lack

of information and do not have the

incentive to lend to these businesses

Investment

Facilitation

Facilitate funding sources by leveraging center’s

brand and relationships: The CIC will provide a well-

managed and facilitated interface that promotes and

supports the connection of investors with GCIC

investment opportunities in a credible, secure and risk-

managed way. This include connecting with and

growing local/regional investor networks as well as

relationships with high-net-worth individuals, angel

investors and existing fund providers, including

traditional institutions, to secure co-investment and

participate in follow-on financing rounds. This may

include hiring of executives-in-residence, angel

investors or investment promoters to work directly with

GCIC beneficiaries over a significant period of time to

secure large amounts of investment (USD 250K up to

USD 750K or even higher thresholds of USD3M

depending on company size).

Syndicate to leverage other grant, loan and equity

investments including possible government funded

grants for PoC investments. Develop a formal alliance

with a number innovative and nationally appropriate

investment matching platforms and/or partners (for

example, crowdfunding or similar online investment

Identifying potential investors, raising

their awareness in the sector and

matchmaking

Coordinated engagement with the

investment community providing

quasi – debt and venture debt

needed

Dedicated resources as well as

engagement with potential co –

investors in funding the scale up stage

Consistent and coordinated

engagement with the investment

community

Stronger connections and expansion

of the investment ecosystem

(academic, business, government,

social private sectors) nationally,

regionally and internationally.

An enhanced ability to compete for

global green growth financing.

Providing a formal channel for

connecting potential investors

‘anywhere anytime’ with potential

Page 59

platforms, government programs, etc.). Such

platforms will also offer a formal way for many

potential individual investors to fund GCIC beneficiary

companies in a managed and transparent way. As

the GCIC develops relationships with financiers, it will

also consider supporting more mature companies that

may not have been part of the program at an earlier

stage.

Examples include:

Facilitate working capital financing from banks

Facilitate consumer finance to ensure technology

adoption in the market

Facilitate financing that addresses gender barriers

to capital

investment opportunities in the Ghana

through a credible and well

managed platform.

An integrated approach to identifying

and accessing both seed capital and

acceleration funding from a range of

international, regional and national

donor agencies, development banks,

youth business trusts, business

development agencies, NGOs and

private sources.

Targeted finance instruments are

required, in particular for business

acceleration.

5.4.3 Component 3: Market Growth and Access

Market Growth and Access is a set of CIC services to assist SMEs to reach new regional and

international customers and facilitate the overall growth of Ghana's domestic climate

technology market. This includes market intelligence reports, climate technology and sector

trend reports and databases, an export promotion program and country-wide networking

events for climate technology SMEs and entrepreneurs.


Market Research

and Analytics

Market intelligence products including:

Market size for various clean tech

technologies

Current market penetration for those

technologies

Information on ideal price points for

large scale consumer adoption

Provide information on competing solutions in

the market

Provide research, reports and analytics on sector

trends, innovative business models and targeted

information regarding potential partners

Original Ghanaian-specific market

research that generates data on a

regular basis to enable technology

development in line with market

needs

Access to consistently updated

market opportunity data for the

various technologies

Consumer financing options for

end-users that diminish switching

costs, facilitate rapid consumer

uptake due to comparatively high

cost of climate-smart products and

enable the entrepreneurs to gain

Page 60

traction and scale in the market

Export Promotion

Program Country-wide networking events for SMEs

allowing a diverse range of customers, suppliers

and investors to network with Ghanaian climate

tech firms.

Company internationalization to travel to trade

shows and marketing events and to build go-to-

market strategies for international markets.

Training on environmental and performance

standards required to access export markets.

Promote standards for products and services

developed, manufactured and assembled in

Ghana for sale nationally and internationally.

Support understanding of appropriate quality

and other international standards to ensure

confidence in purchasing ‘home grown’ versus

imported products and services. This requires

collaboration with institutions that have

responsibilities in these areas.

Marketing knowledge and

information sharing on par with

global best practice.

Creating an awareness of the cost

benefits of climate-tech products

and solutions

Support for the development of

international market opportunities.

The adoption of internationally

recognized product and service

standards to engender customer

confidence.

Independent accredited testing

agencies need to be available to

certify regional products and

services.

Environmental impact assessment.

Leverage and enhance existing

regional networks.

Identifying potential investors,

raising their awareness in the sector

and matchmaking.

Technology Quality

and Performance

Database and

Information

Technology quality and performance data

including:

Access to technical information on

products they wish to develop, where

to import parts, quality of various

substitutes, IP information

Information on materials sourcing

Information on tax regimes, local

availability

Periodic analysis of competitive

technologies that offers consumers

with apples to apples comparison

Access to the IP status of various

climate-tech products and services

being developed or available

within the region.

A comprehensive database

providing entrepreneurs with

information on clean tech parts

sourcing as well as providing

consumers with clean technology

options to meet their needs.

Page 61

5.4.4 Component 4: Technology and Product Development

Technology and Product Development is a set of CIC services to assist with the technical

aspects of developing an innovative good or service. This would include linking with technology

suppliers, training on best practices for technology use, access to R&D facilities (labs,

equipment), prototype facilities (CAD, 3D Printing), testing and demonstration support, and initial

product manufacturing support. Many of these services would be provided to CIC clients as

outsourced services.


Technical

Facilities and

Services

The CIC will provide both technical facilities and

expertise to support CIC clients to design, prototype,

test and manufacture products.

R&D facilities: The CIC will secure use agreements with

technical facilities (likely located at universities or

public research institutes) to allow CIC clients to

undertake product research and development.

CAD Lab : The CIC will provide a computer lab with

computer animated design software and training to

assist in the development of virtual prototypes

3D modelling Machines: The lab also will house a 3D

modelling machine (CNC Machine – Computer

Numerical Control) to rapidly produce prototype

models from CAD files.

Initial production and manufacturing: The CIC will

partner with MNCs and local industry/manufacturing

firms to negotiate lower rates for first-run production

and manufacturing of the CIC associated enterprises.

Design, technical courses, equipment use, and

manufacturing: The CIC will provide training for

entrepreneurs on the use of equipment as well as other

technical trainings related to the entrepreneurs’ areas

of focus. This includes training in general

manufacturing best practices to assist entrepreneurs

professionalize their production.

Appropriate testing environment

and facilities, as well as access to

computer and administrative tools.

Access to facilities and equipment

that entrepreneurs can use to

develop prototypes.

Independent accredited testing

agencies need to be available to

certify regional products and

services.

An incubator space providing

support services to entrepreneurs

and access to the facilities and

equipment that entrepreneurs can

use to develop and test prototypes

Greater collaboration country-wide

in areas such as standards, legal

requirements, import/export

requirements, and technology and

information transfer.

Need to build entrepreneurial &

talent capacity with

entrepreneurship training,

counseling and career advice,

prototype development,

manufacture and testing support

systems and facilities.

Capacity needs for using high

efficiency equipment

Research

Commercialization

Commercialization program for universities and

research institutes involved in climate tech R&D: The

CIC will facilitate programs, funding and other

Closer linkages among educational

institutions, business development

agencies and entrepreneurs.

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opportunities for collaborative research and

technology development between climate

entrepreneurs and Ghana’s universities and public

research institutes.

Need to take research ideas

developed in universities and CSIR

to market.

Intellectual Property Services: The CIC will provide

clients with the necessary trainings and tools related to

protecting their intellectual property rights as well as

adhering to international and national regulations

relevant to their respective stages of business

development. This would include among other services

obtaining patents for new products and licensing of

existing technologies.

5.4.5 Component 5: Policy and Regulatory Support

Policy and Regulatory Support is a set of CIC services to improve the overall enabling

environment for climate technology industries. This would include reviews of policy

implementation and effectiveness, a dialogue series and public events to engage policy

makers, research on policy trends and best international practices, and advocacy on the behalf

of entrepreneurs.


Policy

Advocacy

Engagement with government on climate tech policy

issues:

Work closely with the government and interested

parties to develop policies that support the

development and adoption of clean technologies in

Ghana

Identification and strengthening of linkages with

Ghana’s National Climate Change Policy Framework

Work with Government and interested parties to

address gender challenges to technology including

coordinating presentations at schools and universities

on women’s success and opportunities as well as

providing early training for girls in science and

technology

Active engagement with policy

makers on the key policies needed to

support the growth and adoption of

clean tech solutions

“Industry association” role that can

play the part of engaging and

informing the government

Ease of collaboration both with local

institutions such as universities as well

as international institutions on clean

technologies

Fostering a supportive policy

environment for the protection of

Intellectual Property (IP)

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Policy

Research

and

Dissemination

Compile relevant primary and secondary research for

clients on clean tech policy trends and best practices.

Develop and disseminate thought leadership on policies

and regulations to drive the climate tech market in

Ghana.

Lack of accessible information

and data regarding policy trends

in clean tech

Well thought out incentive

structures that encourage local

entrepreneurs to develop clean

technologies and that incentivize

consumers to choose them

Policy

Dialogues,

Roundtables

and Events

Coordinate, organize and participate in key events that

convene policy makers and other interested

stakeholders in policy discussions related to

entrepreneurship in the clean tech sector in Ghana. This

may include encouraging the formation of groups like a

climate enterprise business association that can

participate in a granular level of dialogue with key policy

makers.

Closer linkages among

government institutions, business

development agencies and

entrepreneurs.

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6.0 Operational Plan

6.1 GCIC Implementation

To ensure sustainability and the development of local capacity, infoDev will partner with local

organizations that would implement the activities of the GCIC and serve as the host or

secretariat for the Center. Based on the experiences of previous CICs, there is likely to be a lead

hosting organization within a consortium consisting of multiple organizations with

complementary experiences and skills to contribute to the implementation of the CIC. These

local host organizations would be competitively selected by infoDev following World Bank

guidelines. Additionally, the local host organizations would be appraised by the World Bank to

ensure adequate capacity to manage all funding received and ensure social and

environmental safeguards in all GCIC activities.

Following the signing of a grant agreement between the World Bank and the local host

organization(s), the implementation of the GCIC would begin. infoDev will pursue a two phased

approach to implementation which will include: 1) an establishment year to put in place the

Climate Innovation Center’s core staff and services, and 2) scale up years (years 2-5) to

operationalize the full set of services of the GCIC as defined in this business plan.

The diagram below shows the expected roll-out timeline for the Ghana CIC based on infoDev’s

implementation experience with the Kenya CIC, Mobile Application Labs and other enterprise

acceleration and incubation programs. The establishment (first) year of implementation

activities will be a critical time of establishing the Center’s structure, making key hires and

identifying and contracting partner service providers and facilities. The majority of the CIC

programs will begin with the official launch of the CIC in the third quarter of the establishment

year and will scale-up over the next four years of CIC operations, as described in the 5-year

budget projections.

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Implementation Timeline

6.2 CIC Host Selection

The Center’s host and consortium partners will be identified via a request for proposal (RFP)

process. The lead partner must be Ghanaian; therefore, local legal registration may be needed.

Applicants will be encouraged to consider partnerships with other organizations, inside and

outside Ghana in order to best provide the range of capabilities necessary to establish and

operate the CIC. Short-listed organizations or consortia will be required to provide full technical

proposals indicating that they are qualified to perform the services outlined in this business plan.

Important evaluation criteria for consortia partners will include:

Capabilities to build and manage complex organizations, including strong internal

governance frameworks and a track record of fiduciary responsibility and accountability.

Proven ability to attract and build a strong team of individuals including a senior

management team for project implementation.

Understanding of the needs of climate technology SMEs in Ghana or similar contexts,

including experience evaluating climate technologies and incubating early-stage businesses.

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Strong local and international links with potential partners including climate technology firms,

investors, technical and business experts, policy experts, and leading research and

development organizations.

Ability to leverage existing and additional sources of funding, both cash and in-kind, such as

space, equipment, and staff.

Ability to implement and maintain procurement and financial management processes and a

comprehensive M&E strategy.

Physical presence, including relevant experience, partners and networks in a major

6.3 Establishment Phase – Year 1

The objective of the first phase is to establish the required infrastructure, partnerships, skills,

facilities and pipeline of entrepreneurs and technologies that forms a foundation for the GCIC’s

full implementation and scale up in the second phase. Activities in the launch phase to be

funded under Phase 1 include:

Setting up of appropriate office space, networking, meeting space, IT infrastructure and

conferencing facilities.

Begin testing the market by building a pipeline of beneficiary companies through

programs such as proof-of-concept, networking events and other activities. These

companies would be eligible for the full range of GCIC services, financing and support

when rolled out by the GCIC.

Ongoing technical assistance, support, training and partnership facilitation from infoDev’s

Climate Technology team.

Identification and establishment of partnership arrangements with partner organizations to

provide outsourced services and facilities for the CIC clients.

6.4 Scale-up Phase: Years 2-5

It is anticipated that after the establishment phase, infoDev will assess the progress and success

of the activities implemented in the first 12 months. It will then begin the next phase of funding to

the GCIC to scale the core GCIC services as outlined in chapter 5. These programs and services

will operate on predominantly annual cycles from years two through five.

Programs will be phased and prioritized according to their importance. To avoid capacity

constraints, the GCIC’s host partners should allocate resources and concentrate efforts on the

core support programs to entrepreneurs. A full work plan based on experience in the first phase

will be developed with partners before funding is allocated to scale-up. In addition to the below

activities, infoDev will deliver training and other technical assistance on a continual basis.

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6.5 Governance

The Climate Innovation Center will be housed in a local organization selected through a

competitive bidding process. The governance of the CIC will be fully defined at the time of

negotiation with the host organization and partners in adherence with local regulations. The

selected organization and associated consortium partners will be responsible for all aspects of

the CIC establishment and operations including securing appropriate facilities, identifying a

world-class management team, providing the services and programs described in the business

plan, and ensuring effective monitoring and evaluation (M&E) of programs. The host will report

to infoDev and the infoDev Climate Innovation Multi-donor Trust Fund (CITF) Steering Committee

to ensure effective and successful execution of the program in accordance with required

fiduciary and financial management practices.

6.6 Organizational structure

The CIC will have its own internal organizational structure which will comprise of an advisory

committee, a management team and key staff.

6.6.1 Advisory Committee (AC):

An Advisory Committee will advise the CIC host on technical elements related to planning,

strategy and business development. It will include up to 5 members, to be composed of relevant

private sector and government representation and will be nominated by the CIC in

collaboration with infoDev and founding partners.

These memberships, which will be provided on a two-year rotating basis, will assist in forming

linkages with various public and private partners to help achieve its mandate. The AC will also

ensure appropriate coordination is made with existing DANIDA and founding partner initiatives.

The CIC will consult infoDev and funding partners on changes in the committee’s structure over

the duration of the program. The AC, once established, may organize separate bodies that, can

advise on specialties based on technology sectors. For example, the CIC may have an advisory

sub-committee on ‘waste management technologies’.

6.6.2 Management Team

In accordance with the organizational design, program budgets will be managed by a

management team led by the CIC CEO. The CEO will be responsible for the day-to-day

operations of the Center, including oversight of programs, reporting to infoDev, the host and

advisory committee, developing relationships, setting strategic objectives and fund-raising. The

CIC CEO will be supported by a Senior Marketing and Communications Officer that will lead the

promotion, branding and dissemination of the Center’s programs and services. The CEO will also

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be supported directly by Procurement and Financial Management Specialists to ensure

appropriate fiduciary duties are enacted and procurement guidelines followed and a

Monitoring and Evaluation Specialist to build and implement and M&E framework and systems.

6.6.3 CIC Staff

Other roles within the CIC include an Access to Finance Manager who will manage the budgets

for the POC grants and the investment facilitation activities. Other Managers will manage the

budgets for the Entrepreneurship, Technology Development and Market Growth and Access

service lines. Business Advisors will handle advisory work to CIC clients, with additional Advisors

added as the CIC takes on more clients. A Policy Fellow will lead the policy advocacy and other

related analytical products while a Gender and Rights Specialist will have the critical role of

ensuring that the Center’s Women Entrepreneurship program and Rights focus is mainstreamed,

monitored, evaluated and directed throughout the CIC’s operations.

6.6.4 Staffing requirements

The illustration below outlines the staff requirements for the GCIC totaling the equivalent of 13

full-time equivalent (FTE) staff in the establishment year rising to a full staff complement of 19 by

Year 4. As stated previously, the GCIC may choose to outsource some of these roles through

contracts with service providers or through partnership arrangements with consortium members

based on the host organizations’ capacity and capabilities.

infoDev experience reflects that high quality management and staff is key to the success of

incubation centers. The goal of the CIC would be to recruit the highest quality staff but at

competitive salaries. One way of achieving this would be through working with a professional

recruitment company. Salary assumptions for the different roles can be found in the annexes.

Role Description FTE

CIC CEO Manager who oversees the day-to-day operations of

the Center, including setting strategic objectives,

oversight of programs, reporting to infoDev, the host

and advisory committee, developing relationships, and

fund-raising

(1)

Marketing and

Communications

Director

Coordinates branding, marketing, communications

and outreach for the Center (1)

Rights and Gender

Specialist

Coordinates rights and gender activities across the

Center including women’s entrepreneurship programs

and mainstreamed initiatives.

(1)

Business Advisor Coordinates and provides business advisory and

technical assistance to client SMEs (3)

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Entrepreneurship

Manager

Oversees the mentoring, advisory, trainings and office

space for the entrepreneurship and venture

acceleration programs.

(1)

Access to Finance

Manager

Oversees proof of concept grants program and

investment facilitation program. (1)

Investment Principal Part of seed capital facility management team.

Oversees seed capital facility strategy and

implementation.

(1)

Investment Director Part of seed capital facility team. Scouts, screens,

selects and advises investment and co-investment

opportunities.

(2)

Market Access

Manager

Makes links between client SMEs and regional and

international markets. Oversees market research

program and technology product database.

(1)

Technology

Development

Manager

Oversees the technical facilities and services program

and the research commercialization program. (1)

Policy Fellow Expert and thought leader affiliated or on assignment

with Center tasked with preparing policy reports,

articles and policy advocacy

(1)

Policy Officer Coordinates policy dialogue and events and supports

policy advocacy (1)

Financial

Management &

Procurement Officer

Responsible for Center's procurement and financial

management obligations to meet World Bank group

procedures and guidelines

(2)

Monitoring and

Evaluation Specialist

Responsible for establishing and implementing Center's

monitoring and evaluation systems (1)

Administrative

Support

Responsible for the Center's administrative tasks (1)

*The CIC may choose

to outsource many of

these roles through

contracts with service

providers.

6.7 Safeguards

As a part of the World Bank, infoDev strictly follows the World Bank’s grant guidelines and

procedures outlining fiduciary and other obligations for all funds entrusted to the World Bank. In

addition, the GCIC host will also be subject to World Bank safeguards guidelines and will be

required to display financial management and procurement capacity to the World Bank. Part of

infoDev’s appraisal process will include an environmental and social safeguards assessment of

the GCIC host. Furthermore, safeguards will also be assessed at the GCIC level for all its activities.

Safeguard triggers will include:

Natural habitats

Forests

Involuntary resettlement

Safety of dams

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Pest management

Physical cultural resources

Indigenous peoples

International waterways

Disputed areas

Child labor

6.8 Other Issues to be addressed during Implementation

Outstanding governance questions including advisory committee membership,

management structures and ownership of the CIC which will be addressed in detail

when founding donors and hosts are identified.

Investment governance and structuring including design of the seed capital facility

structure, potential leverage amounts, term-sheets, management fees, and coordination

with CIC host.

Staffing review including reassessment of in-house versus outsourced staffing

requirements for each business line based on the host’s existing capacity.

Further development and execution of GCIC marketing and communications strategy

by the full-time Marketing and Communications Officers, listed in the staffing table.

Finalizing the coordination of communications, marketing and reporting of GCIC events,

services and impact with the global program.

Technology priorities including understanding which sectors have the greatest demand

for the CICs services and how the Center’s technology specializations and expertise will

evolve over the first years of operations.

Intellectual property rights including addressing ownership issues amongst the Center,

affiliates, partners and investees.

Performance metrics including the priority impacts and objectives the CIC will measure

over the first phases.

Plan for an independent evaluation of the CIC to offer an outside analysis 3-4 years into

implementation and make recommendations for a concrete exit strategy.

6.9 Exit Strategy

6.9.1 Donor Support

While donor money will be necessary to fund the GCIC over the first five years, it is expected that

the CEO and management team will raise additional contributions (both cash and in-kind) for

continued operations beyond the first five years. The objective of initial donor funding is to

establish the GCIC’s core structure, scale programs, generate successes and demonstrate the

program’s value for local public and private sector support in the longer term. Donors are

expected to exit as majority funders of the GCIC after the first five years, with investment returns,

repayments and success fees supplementing the ongoing cost of the program. Further support

to subsidize the operational budget of the GCIC will be sought from relevant public bodies

including host governments and development banks. Other funding sources from international

climate finance, philanthropic and corporate sponsorships will also be considered to ensure the

sustainability of the program after 5 years.

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6.9.2 Privatization

It is intended that the GCIC will aim to spin-out of its host organizations after an initial 3-4 years of

operations. This timeline will be dependent on a number of factors including levels of funding

support, success of programs and necessity. The spin-out strategy will follow a similar process that

CICs in other countries are currently undergoing. In the case of Ghana, the GCIC may form its

own non-profit legal entity which will provide it complete autonomy and flexibility from the host

institutions. It will therefore allow the Center to operate outside of the legal and procedural

restrictions of the host organizations.

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7.0 Financial Plan

7.1 Budget for establishment through year five

The below is the expected budget for the five years of the GCIC’s donor-supported

establishment and scale-up:

Ghana CIC Budget

Entrepreneurship and Venture Acceleration: Business Advisory, Technical Assistance,

Office Facilities 1,860,000

Access to Finance: Proof of Concept Grants, Direct Investments, Investment Facilitation 9,035,000

Market Growth and Access: Market intelligence, export promotion, knowledge

exchange, trade linkages 1,218,000

Technology and Product Development: Technical facilities and services,

commercialization program 520,000

Policy and Regulatory Support: Advocacy for enabling industry environment 781,000

Core Staff: CIC Management 1,602,500

Financial Management and Procurement 385,000

Monitoring and Evaluation 505,000

Administrative Costs: Travel, IT and Other Expenses 200,000

Global CIC Network Participation: Global Collaboration, South-South Learning,

Technology Platforms, Market and B2B Connections, Communications and Branding 1,100,000

Total 17,206,500

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7.1.1 GCIC Aggregated Budget in USD

Notes: The budget includes both recipient executed and World Bank executed activities, though the vast majority of the project would be

implemented through recipient executed grants to local partner organizations/consortia. Personnel costs include estimated salaries plus benefits for

FTEs, with an expectation of mostly locally recruited staff but some (largely short term) internationally recruited staff. The full disaggregated budget is

available in excel upon request.

CIC SERVICE LINEPERSONNEL

TOTAL

ACTIVITIES

TOTAL

PROGRAM

TOTAL

PERSONNEL

TOTAL

ACTIVITIES

TOTAL

PROGRAM

TOTAL

PERSONNEL

TOTAL

ACTIVITIES

TOTAL

PROGRAM

TOTAL

PERSONNEL

TOTAL

ACTIVITIES

TOTAL

PROGRAM

TOTAL

PERSONNEL

TOTAL

ACTIVITIES

TOTAL

PROGRAM

TOTAL

PERSONNEL

TOTAL

ACTIVITIES

TOTALTOTALS

Entrepreneurship and

Venture Acceleration120,000 152,000 272,000 240,000 152,000 392,000 240,000 152,000 392,000 240,000 162,000 402,000 240,000 162,000 402,000 1,080,000 780,000 1,860,000

Access to Finance 120,000 255,000 375,000 180,000 1,555,000 1,735,000 264,000 1,705,000 1,969,000 348,000 1,955,000 2,303,000 348,000 2,305,000 2,653,000 1,260,000 7,775,000 9,035,000

Market Growth and Access 30,000 200,000 230,000 60,000 200,000 260,000 60,000 186,000 246,000 60,000 181,000 241,000 60,000 181,000 241,000 270,000 948,000 1,218,000

Technology and Product

Development30,000 62,000 92,000 45,000 62,000 107,000 45,000 62,000 107,000 45,000 62,000 107,000 45,000 62,000 107,000 210,000 310,000 520,000

Policy and Regulatory

Support81,000 44,000 125,000 120,000 44,000 164,000 120,000 44,000 164,000 120,000 44,000 164,000 120,000 44,000 164,000 561,000 220,000 781,000

Core Staff 282,000 38,500 320,500 282,000 38,500 320,500 282,000 38,500 320,500 282,000 38,500 320,500 282,000 38,500 320,500 1,410,000 192,500 1,602,500

Financial Management

and Procurement72,000 5,000 77,000 72,000 5,000 77,000 72,000 5,000 77,000 72,000 5,000 77,000 72,000 5,000 77,000 360,000 25,000 385,000

Monitoring and Evaluation 60,000 50,000 110,000 60,000 35,000 95,000 60,000 35,000 95,000 60,000 35,000 95,000 60,000 50,000 110,000 300,000 205,000 505,000

Administrative Costs - 40,000 40,000 - 40,000 40,000 - 40,000 40,000 - 40,000 40,000 - 40,000 40,000 - 200,000 200,000

Global Network

Participation120,000 100,000 220,000 120,000 100,000 220,000 120,000 100,000 220,000 120,000 100,000 220,000 120,000 100,000 220,000 600,000 500,000 1,100,000

SUB TOTALS

915,000 946,500 1,861,500 1,179,000 2,231,500 3,410,500 1,263,000 2,367,500 3,630,500 1,347,000 2,622,500 3,969,500 1,347,000 2,987,500 4,334,500 6,051,000 11,155,500 17,206,500

CIC5 Year Plan

Establishment Year Year 2 Year 3 Year 5Year 4 Implementation

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7.2 Sustainability

7.2.1 Investment income

The CIC will work for partial self-sustainability, largely through its investment activities, which are

anticipated to cover 55% of the CIC’s operating costs each year by year 7. The detailed

assumptions driving this revenue are shared in the Annexes.

The Center can aim to reach a higher level of sustainability by introducing other revenue

streams, once a strong value proposition has been achieved in the early years. It is possible that

the GCIC will never be fully sustainable and will require some level of continued public subsidy. It

is infoDev’s view based on its incubation experience that achieving only partial sustainability is a

realistic outcome and some level of ongoing public subsidy is justifiable given the public good

nature of the initiative and high level of return on investment to public funds through future tax

revenues and other economic outcomes previously discussed in Chapter 2.

7.2.2 Other revenue potential

infoDev has investigated other potential revenue sources, which may be developed over time.

These revenue streams will be evaluated and developed in years 3 to 5, once a strong value

proposition for the Center has been achieved. It is assumed that management would

periodically revisit the business model of the center to identify sources of funding where

appropriate without compromising the objectives of the program. Such sources of revenue

could include:

Carbon credits: The GCIC and its beneficiaries would ideally apply for available carbon

credits as a potential revenue source. The policy advisory and market information services

of the Center should aim to identify such sources of funding.

Facilities leasing: The GCIC will explore the adoption of a pay-per-use model to generate

income from the Center’s agreements with facility providers.

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Sponsorship: The GCIC will recruit corporate sponsors that will attract private sector

participation. Industry and the private sector will benefit from this affiliation by gaining,

among others, access to new venture activity, technology and market research.

Tailored training: In later years, the GCIC may be able to monetize its market and technical

knowledge. The capacity building team will develop training models that can be

provided to industry at a fixed fee. Charging for training will be explored in years 3-5.

Consulting work: The center may in time, leverage in-house talent and resources to provide

consulting services to third parties for a fee. Lessons learnt, relationships built and expertise

accumulated by the GCIC’s work would provide a wealth of information for private sector,

government and development partners.

7.3 Co-investment and Leverage

Co-investment for all investments will be sought from affiliated investors. The CIC will target angel

and other private investors, including a formal relationship with banks to co-invest in CIC

companies. An anticipated co-investment of at least 1-to-1 will be sought with private investors

with up to 2-to-1 leverage from bank loans. Leverage may also be sought at the level of the

investment manager via the competitive selection process where infoDev will assess bidders on

leverage criteria. Leverage may also be achieved through follow-on investments in CIC

companies. It is expected that this will amount to approximately 4.5 times the Center’s original

investment.

7.4 Fundraising Plan

For the CIC’s operations in Years 1-5, infoDev is raising a cumulative USD 17.2 million. infoDev

intends to secure commitments for 100% of the required funding in advance of launching the

CIC. Securing this funding is important to ensure that the CIC remains adequately resourced

throughout its maturation period. infoDev is targeting development partners with an aligned

mission to the CIC. Following the completion and endorsement of the business plan, infoDev will

engage a wide range of development partners active in Ghana. Based on infoDev’s track

record in other CIC countries, initial positive conversations with development partners, as well as

an expected anchor contribution of USD 10m from Danida, there are strong indications that the

fundraising can be successful.

7.5 Global Network Participation

In addition to country level activities, the GCIC will also participate and benefit from infoDev’s

Global Climate Technology Program. The CTP focuses on a number of global activities to

coordinate national CICs, drive learning for developing country innovation in climate

technologies and collaborate with related initiatives.

By providing standardized systems, the CTP will assist individual CICs in accessing the latest

software, web-enabled services and networking technology to build their interconnectivity both

between CICs and individual companies. Such standardized technology support would include

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systems for screening and selecting technologies, content management and database

software, and online networking platforms.

Three key activities of the CTP will support the GCIC:

i. Global Networking and Collaboration

Global Networking and Collaboration includes South-

South learning exchanges between the GCIC and the

seven other global CICs (both virtual and in-person as

opportunities and budget permit). The CTP will also

provide the GCIC with access to a web based impact

monitoring system to track results and impacts in real

time, enabling impact evaluation research for the

GCIC as for each of the CICs within the global

network. Global level climate technology research will

be provided to GCIC, based upon the market

research and sector trends provided by the global

network of CICs.

ii. Market Connect

Market Connect will provide a number of coordinated

services across individual CICs and help link promising

companies with global partners and expertise. An

online platform will showcase the companies, products

and technologies of GCIC clients to international investors and partners. Moreover promising

CIC-supported companies will be further linked globally via a regularly held international event

and the set-up of regional innovation networks in Africa, Asia, Eastern Europe and Latin America.

iii. Awareness, Branding and Communications

Awareness, Branding and Communications includes a common CIC web architecture and

design that can be rapidly deployed to each new CIC, customized branding for each CIC that

also represents the global CTP look and feel, and communications and media support to raise

awareness and internationally publicize the local activities of each CIC.

These three global programs will serve the needs of Ghanaian climate innovators by helping

them access the latest technologies, information, financing and expertise to participate in

growing international clean tech industry opportunities.

While the global CTP activities will be operated by the infoDev’s Washington DC-based expert

team, country CICs will be implemented through the local World Bank offices. This will ensure

that World Bank and IFC knowledge, systems and funding can be leveraged at the country

level.

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8.0 Indicative Impact and Results

The GCIC’s economic, environmental, and social impacts will be determined by the number of

businesses and the types of technologies the center supports. These have been estimated using

a comprehensive model based on the GCIC’s budget breakdown and investment rationale,

which generates targets for the GCIC program goals and maps them to dimensions of the results

chain: global target, intermediate outcomes, ultimate outcomes, outputs and activities. Global

and ultimate outcomes are shared across the whole CIC, while intermediate outcomes and

outputs are categorized across four key results. The outcomes and outputs have their

subsequent indicators, which outline their aims through a target.

8.1 Highlights

After 5 years, the revenues of 194 CIC-assisted companies will generate the equivalent of

approximately USD 28.6 million in economic impact and help between 101,435-304,304 people

increase their resiliency to climate change. In the long term (after 10 years), assuming continued

financial support, the GCIC’s macro-economic impact generated by approximately 430

companies, will have grown to over USD 78 million with between 276,728-830,185people

impacted and over 10,000 cumulative jobs created. Through co and follow-on investments in

GCIC companies, the Center is projected to deliver USD 25 million in private sector leverage

over the 10 years.

In the long term, the GCIC is projected to achieve a range of technology impacts by

contributing to the production of over 260 million kWh of cleaner or saved energy to up to

126,115 people. It is expected that between 220,533 and 661,598 tons of CO2e will be

mitigated.67

8.2 Monitoring and Evaluation

The GCIC will budget approximately USD 95,000 per year for monitoring and evaluation of both

direct and spill-over effects that the center’s programs and services are having on beneficiaries

and surrounding communities. This will be complemented by infoDev’s global CTP Impact

Monitoring System launching in 2014. M&E will be achieved through the following means of

verification:

Internal databases and data collection

Ghana CIC annual reports

Focus groups and stakeholder follow-up

Survey and other quantitative measurements where possible

infoDev project supervision and assessments

67 More detailed modeling and assumptions are shown in the annexes

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Client surveys and interview

Government interviews

Other stakeholder interviews

Website usage statistics

In order to assess the performance of the GCIC, the full set of results indicators were developed

in accordance with donor requirements under a Performance Measurement Framework (PMF).

The PMF focuses on both quantitative and qualitative targets over 5 and 10 years. This will be

used to monitor the GCIC’s performance on an annual and semi-annual basis.

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8.3 Logic Model (LM)

Global

Target Increased economic growth and sustainable development in Ghana

Ultimate

Outcomes

Economic

Economic growth and competitiveness achieved

through the accelerated growth of climate ventures

and entrepreneurial activity

Environmental

Climate resilience achieved through the localization,

commercialization and transfer of high impact climate

solutions

Social

Improved livelihoods achieved through access to

clean technologies including improved services,

health benefits, job creation and shared wealth

Intermediate

Outcomes

Increased growth and investment in new

clean technology ventures

Strengthened technical skills, business

models and workforce capacity of

clean technology ventures

Adoption of clean technologies to

improve energy access, resource

use efficiency and reduce

vulnerability to climate change

Enhanced enabling environment and support

for clean technology venture creation and

commercialization

Output

Proof-of-Concept grants delivered to

GCIC client ventures

Investments raised by GCIC client

ventures

Creation and growth of GCIC client

venture

Training, information, peer learning

activities, networking opportunities

and events delivered

Mentoring and coaching delivered

Access to facilities provided

Access to cleaner sources of

energy

Improved resource use efficiency

and increased climate change

mitigation activities

International sales growth achieved

Institutional capacity strengthened

Creation of jobs, including for youth and

women

Supportive partnerships with industry, civil

society and private sector built

Delivery of resources for policy makers and

stakeholders

Activities

(Inputs)

Deliver PoC grants to clean technology

ventures

Provide financial accelerator (advisory,

syndication, promotion) services to

growth-stage GCIC ventures to secure

funding

Establish a network of investors and

financial institutions

Deliver training, information, peer

learning activities and events

Deliver mentoring and coaching

support

Build supportive business and

peer networks

Provide access to relevant online

platforms

Provide access to facilities for

entrepreneurs

Deliver reports, market summaries and

related content

Deliver events, seminars and provide

opportunities for policy dialogue

Promote the climate tech sector through

awareness campaigns, advocacy and

entrepreneurial success stories

Facilitate and support a range of key

partnerships and networks at the local,

international regional level

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8.4 Indicative Performance Measurement Framework (PMF)

Expected Results1 Indicators Targets

5yrs

Targets

10yrs Assumptions* Data Sources Frequency

Ultimate Outcomes

Economic Revenues of GCIC

ventures generated

(USD)

28,623,

958

78,090,2

78 Anticipated CIC beneficiary

companies’ cumulative

revenues

Technology impacts have

been calculated with 7%

increase per year taking into

account decreasing costs and

increasing efficiencies of clean

technologies (Moore's Law of

solar)

GCIC client

ventures

Annual

Environmental Number of people

less vulnerable to

climate change

101,435

-

304,304

276,728-

830,185

Number of people provided with:

Cleaner energy

Improved/cleaner water

access

Access to cheaper/better

quality food.

Data from client

ventures,

calculated by

GCIC

Annual

Reduction in GHG

emissions (tons of

CO2 mitigated)

80,836-

242,509

220,533-

661,598 Based on off-grid kW produced

Using growth rate of 7%

(Moore's Law of solar)

0.8722kg/kWh

Data from client

ventures,

calculated by

GCIC

Annually

Social Number of direct and

indirect jobs created

3,158 10,720 2 employees for PoC clients

5 employees for Financial

Accelerator clients with varying

growth rates over 3, 6 and 10

years

Indirect jobs anticipated at 3 x

direct based on benchmark

data from US

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

Intermediate Outcomes

Increased growth

and investment in

new clean

technology

ventures

Amount (USD) of

GCIC funding

accessed by client

ventures

(cumulative)

7,725,0

00

15,166,6

66

PoC Grants + Seed Capital

Investments

GCIC Records Semi-Annual

Number of client

ventures benefitting

from GCIC services

194 430 Companies benefiting from PoC and

Seed Capital funding and services

GCIC Records Semi-Annual

Adoption of clean

technologies to

improve energy

access, resource

use efficiency and

reduce

vulnerability to

climate change

Number of people

with access to

energy from cleaner

and/or renewable

sources

5,774-

17,323

15,753-

47,259

Based on projected cleaner sources

of energy produced by GCIC

companies and Ghanaian household

energy usage

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

Number of people

with access to better

or cleaner water

supply

6,967-

20,900

19,006-

57,017

Based on projected increased water

access by GCIC companies and

Ghanaian household water usage

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

Number of

households with

access to

better/cheaper

20,158-

60,473

54,993-

164,979

Based on projected enhanced

agricultural products by GCIC

companies and Ghanaian household

food consumption

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

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quality food

Proof-of-Concept

grants delivered to

GCIC client

ventures

Number of ventures

applying for PoC

support

175 350 Assuming an application success rate

of 20%

GCIC Records Annual

Number of CIC

ventures receiving

PoC support

35 70 Average of ~10/year GCIC Records Semi-Annual

Number of PoC

competitions

launched

5 10 1 PoC competition launched

annually

GCIC Records Annual

Investments raised

by GCIC client

ventures

Number of ventures

applying for seed

investments

75 175 Assuming an application success rate

of 20%

GCIC Records

Semi-Annual

Number of ventures

receiving seed

investments

15 35 Average of ~8/year GCIC Records Semi Annual

Number of investors

in network

15 30 3 additional investors per year GCIC Records Annual

GCIC ventures that

have increased

international sales (%)

30% 40% Based on assumed international

sales of GCIC ventures

Data from GCIC

Client ventures

Annual

Revenue growth

(USD) of GCIC client

ventures per year

(domestic &

international)

30% 45% Average revenue growth rates per

year for Seed Capital firms based on

benchmarks from region and Seed

Capital model

Data from GCIC

Client ventures

Annual

Number of

international and

domestic training

and networking

activities delivered,

including policy

dialogues, online

course and business

seminars

80 160 4 policy forum per year

12 business seminars , events and

networking opportunities per

year

GCIC Records Annual

Creation and

growth of GCIC

ventures

Number of

participants

engaged in

training/networking

activities, including

policy dialogues,

online course and

business seminars

4,000 8,000 25 participants per seminar,

event and networking

opportunity

50 participants in policy forum

GCIC Records Annual

Training,

information, peer

learning activities

and events

delivered

Number of

participants

mentored/coached

388 860 2 team members per company

in PoC ventures at ~10 PoC

ventures/year

2 team members per company

in Seed Capital ventures at ~ 8

ventures/year

2 team members per company

advised by business advisors

GCIC Records Annual

Number of mentors in

network

25 50 Based on targets for mentor network GCIC Records Annual

Mentoring and

coaching

delivered

Number of facilities

offered

5 10 Assumes one facility provider

MOU signed per year

GCIC Records Annual

Percentage of

ventures using

facilities

60% 60% Assumed use of facilities by

companies based on surveys

GCIC Records Annual

Access to facilities MW of installed

capacity of cleaner

and/or renewable

53,007,

332-

144,611,

626-

Cumulative revenues have been

divided into 3 sectors. The modeling

assumes that 50% of the

Data from GCIC

Client ventures,

calculated by

Annual

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provided

energy sources 159,021

,997

433,834,

866

products/services sold by CIC

ventures will generate energy

impacts, 25% water and 25%

agriculture.

GCIC

kL of improved water

access

6,686,8

41-

20,063,

523

18,245,3

92-

54,736,1

76







agriculture.

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

Access to cleaner

sources of energy

Anecdotal evidence

of more efficient

resource use

Interviews with

GCIC ventures

and end-users

Annual

kWh of energy saved

12,000-

36,000

33,000-

99,000







agriculture.

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

International sales

growth achieved

Institutional

capacity

strengthened

Number of direct jobs

created

632 2,144 2 employees for PoC clients

5 employees for Seed Capital clients

with varying growth rates over 3, 6

and 10 years

Data from GCIC

Client ventures

Annual

Number of indirect

jobs created

2,526 8,576 Indirect jobs anticipated at 3 x direct

based on benchmark data from US

Data from GCIC

Client ventures,

calculated by

CCI

Annual

The creation for

jobs, including for

youth and women

Number of jobs

created for youth

600 2,037 Based on youth labor force

participation rate: 62.3%

Data from GCIC

Client ventures,

calculated by

CCI

Annual

Institutional

capacity

strengthened

Number of jobs

created for women

1,547 5,253 Based on female labor force

participation rate: 55.6%

Data from GCIC

Client ventures,

calculated by

GCIC

Annual

Supportive

partnerships with

industry, civil

society and private

sector built

Number of

partnerships

facilitated with

industry, civil society

and the private

sector (domestic,

regional and

international)

30 50 Based on partnership targets GCIC Records

Annual

Number of members

in supportive

networks

50 100 Based on targets for awareness,

outreach and network development

GCIC Records Annual

Number of reports,

market summaries,

and relevant content

made available

135 270 ~4 market summaries per year

~2 trend reports per year

~1 annual report per year

~20 online/other content per year

GCIC Records Annual

Number of

international and

domestic training

and networking

activities delivered,

including online

courses, policy

dialogues and

business seminars

60 120 ~24 online courses per year

~1 policy forum per year

~12 business seminars per year

~1 Partnership and network program

per year

GCIC Records Annual

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9.0 Risks

Along with expected successes, there are a range of risks associated with establishing an

innovative program such as a CIC; in terms of (i) Operational Risks, (ii) Market Environment Risks

and (iii) Implementing Agency Risks. The stakeholder outreach engagement process outputs

provide an indication of the major risks that will be encountered and potential management

strategies. However, a key role of the Center’s advisory committee and management team will

be to examine, evaluate, and manage risks over time. Included below is an overview of the key

risks identified and their associated rating, description and mitigation strategies:

Risk Category Risk

Rating Risk Description Proposed Mitigation Measure

1. GCIC Operational Risks

1.1 Stakeholder support L Stakeholders including

beneficiaries, partners,

government and private

sector that were

involved in design

process are not

supportive of the GCIC’s

implementation.

Board will include seats for key stakeholders

Locally based infoDev staff will maintain

relationships with key stakeholders

throughout implementation period

Center will be staffed with a Marketing/

Partnership Specialist

infoDev will monitor implementation to

ensure stakeholders’ design is followed

1.2 Host institution/

implementation

partners

M There is a risk that

potential host

institutions/

implementation partners

for the GCIC do not

have the adequate

capacity, skills and

resources to successfully

bid and host the center.

Competitive process to select

implementing partners encouraged

strengthened bids and consortia

The project implementation team will

provide ongoing support and technical

assistance throughout the implementation

phase.

Throughout the design phase, infoDev has

assessed the capacity of existing institutions

and identified such risks

1.3 Management team

and staff

M There are risks

associated with the

unavailability or lack of

talent to manage the

center

Other risks include the

selection of a manager

and/or staff who are

ineffective at delivering

the GCIC’s expected

results

Salaries of GCIC management have been

calculated at competitive market rates to

attract required talent

Identification of management and staff will

follow WBG procurement guidelines and

competitive selection procedures

Local advisory committee will specify the

job description and associated terms and

conditions of employment for each

employee, oversee the performance of

management and staff, set the required

performance metrics to monitor

management performance and results

delivery, and initiate corrective processes

in the event that such delivery does not

meet the performance metrics specified.

1.4 Performance M-H GCIC does not achieve

adequate performance

results as agreed in the

grant agreement

Investments do not

infoDev and the GCIC board will monitor

the results of the Center to ensure grant

agreement milestones are being met. This

will be achieved through the establishment

of a comprehensive M&E framework that

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generate required

returns to achieve CIC

sustainability objectives

incorporates a well-defined set of relevant

Key Performance Indicators.

In coordination with donors, infoDev will

retain the flexibility of reallocating budgets

based on the performance of specific

budget items of the GCIC. Grant

agreements will be canceled and reissued

if milestones in the M&E framework are not

achieved.

Should the performance of the

implementing partners in the establishment

year be less than satisfactory, new

partnerships will be sought to deliver on

years 2 – 5.

The Center’s first 5 years of funding are not

contingent upon returns on investment.

Expectations for ROI are long-term and will

be monitored regularly to adjust the

GCIC’s future funding requirements.

2. Market Environment Risks

2.1 Country L Political support for the

GCIC weakens and/or

political opposition to

the GCIC impacts

Introduction of perverse

subsidies and/or

decrease of conducive

policies to support

climate technologies

GCIC has been designed in close

coordination with Ghana’s government,

including multiple ministries

Center is not contingent on government

funding

Government has minority role on GCIC

board

Ghana has just endorsed its National Policy

on Climate Change

GCIC investments made will not be based

on speculative or short-term policy

measures.

GCIC’s policy advisory business line will

conduct outreach to government decision

makers to ensure such risks are fully

considered.

2.2 Market demand L Poor demand for GCIC’s

services

Lack of quality deal-flow

for center’s investments

Assessment of market demand has been

incorporated into the design phase by

interviewing and analyzing potential GCIC

beneficiaries

Center builds extensive regional and local

stakeholder networks to encourage

demand for the GCIC services and the

associated deal flow

Center continually adapts to market gaps

and reallocates budgets as necessary

Emphasis on customer feedback, quality

control and M&E.

2.3 Competition L Overlap with other

initiatives.

Other

donor/development

program/company

plans to implement a

CIC.

Close coordination with existing initiatives

accompanied by a focus on Center

visibility.

Strength of the chosen local Center

consortium partners.

Demonstrable support from stakeholders

and government to ensure CIC is aligned

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with national goals

3. Implementing Agency Risks

3.1 GCIC

financing/donor

support

M Risks that full initial

financing for center’s

implementation in first 5

years is not secured.

Budget outlined in

business plan is

insufficient to execute

current model.

Additional risk of

financing beyond year 5

not being secured.

More than 50% of budget potentially

identified from Danida

Ongoing promising discussions with a

number of donors to secure additional

funding

Project still viable at lower levels although

not ideal. Various scenarios have been

planned and accounted for and will be

updated and reviewed annually to assess

how options which enhance longer term

sustainability could be implemented.

Financial sustainability as an explicit aim of

the Center post year 5 with a clear focus

on revenue generation.

Close monitoring by infoDev of financing

decisions including flexibility in reallocating

program budgets as needed.

3.2 Capacity &

Governance

L Risk that infoDev’s

project implementation

team lacks adequate

staffing, processes

and/or systems sufficient

to allow for successful

achievement of the

results envisaged by the

project.

As part of project preparation, infoDev will

ensure that the staffing arrangements and

project management procedures are

adequate to implement the GCIC.

Through review of relevant financial

management capacity of the

host/implementing partners, necessary

training will be provided to equip infoDev’s

project implementation team with the

required skills to ensure sufficient financial

management and procurement capacity

of the GCIC.

3.3 Fraud & Corruption

L Grants provided to

implementing partners

and host institution/s will

be mismanaged.

Host institution/s and implementing partners

will adhere to World Bank Procurement

Guidelines. Financial management and

technical progress will be routinely

supervised during implementation.

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10.0 Conclusion

In the global context of climate change, while Ghana’s contribution to greenhouse gas

emissions (GHGs) is negligible, the projected climate change impacts are expected to be

significant. The region faces severe threats that impact land, energy, water and food resources.

These threats will require a substantial and sustainable investment of resources for the necessary

adaptation and mitigation activities. The GCIC is an opportunity to locally develop technologies

and business models to address these climate change threats. However, a number of gaps and

barriers in financing, market awareness, technical capacity and government support policies

hinder the growth of Ghana’s climate innovation ecosystem.

The Climate Innovation Center in Ghana will be a targeted yet holistic mechanism to overcome

these gaps and accelerate the domestic development, deployment and transfer of climate

technology solutions. The GCIC’s service and programmatic offerings will include:

entrepreneurship and venture acceleration, access to finance, market development,

technology and product development and policy and regulatory support, and assistance. In

addition to stimulating innovation and market linkages within Ghana, the CIC will be able to

deliver regional and international collaboration, knowledge exchange and value chain

partnerships through infoDev’s global Climate Technology Program.

The GCIC will provide mentoring, direct funding and investment facilitation to up to 194 new

ventures over 5 years and, over ten years, it is projected the GCIC will create approximately

10,000 direct and indirect jobs and mitigate between 220,533 and 661,598 tons of CO2e. The

projected cost to implement, launch and operate a CIC as designed by the Ghanaian

stakeholders is USD17.2 million over a 5 year period. Donor funding will be initially required for the

Center; however, it is anticipated that returns from the GCIC’s activities will cover up to 55% of

the Center’s operating costs by year 7. The Center will also aim to introduce other revenue

streams once a strong value proposition has been achieved in the initial years.

The stakeholder engagement process has identified and built a strong coalition of stakeholders

and identified a pipeline of potential investees, that can support the Center itself or the GCIC

clients. Several competent local organizations have expressed interest in hosting the GCIC.

Pending the success and outcomes of the GCIC’s programs, the direction, scope and scale of

the Center (and business plan) will evolve over time with guidance from infoDev, a strong

management team and advisory committee.

The CIC will serve as a catalyst for long-term transformative impact in Ghana’s climate

technology sectors and help develop new industries, thereby creating jobs and producing

products and services that equip Ghana and its people to build competitiveness and respond

effectively to climate challenges.

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