The Managing Director and Chief Executive Officer of UBA Ghana, Bernard Gyebi, has urged small and medium enterprises (SMEs), particularly exporters, to integrate environmental, social and governance (ESG) principles into their operations.
He explained that adopting ESG standards would improve their chances of accessing low-cost financing and remaining competitive in global markets.
He, therefore, called for a shift from policy discussions to practical implementation to accelerate ESG financing in the country.
Speaking as a panelist at the 10th Anniversary International Conference of Ghana Export-Import Bank in Accra, Mr Gyebi stated that while Ghana had made significant progress in establishing ESG frameworks, the real challenge lies in integrating these principles into actual financing decisions.
“Ghana has made strong progress on ESG frameworks, but the gap remains in execution. At UBA, ESG is not treated as a compliance layer, it is a core input into our credit decisions,” he said.
He explained that UBA, as a pan-African financial institution, had embedded environmental and social risk assessments into its lending processes across key sectors, influencing how risk was priced and how facilities were structured.
However, he said that broader industry alignment was needed to ensure ESG performance directly impacts access to credit and financing terms.
Partnership
The bank has partnered with Renewvia Energy Corporation to deploy solar microgrids across its Nigerian operations, delivering cleaner energy to its branches and reducing carbon emissions.
It has also collaborated with Agence Française de Développement (AFD) under the SUNREF programme to provide financing for businesses investing in solar energy and energy efficiency, helping to drive a more sustainable private sector.
At the continental level, UBA has secured a $175 million facility from the African Development Bank to support infrastructure and energy development, while its partnership with the African Guarantee Fund (AGF) is unlocking financing for green SMEs through a $100 million credit line backed by a $50 million risk guarantee.
Through these initiatives, UBA is playing a critical role in mobilising climate finance, de-risking investments, and accelerating Africa’s transition to a low-carbon, sustainable economy.
Blended finance facilities
On financing instruments, the CEO stated that while green bonds and sustainability-linked products were gaining traction globally, the Ghanaian market requires more practical and scalable solutions.
He emphasised the need for blended finance facilities, describing them as the most practical ESG financing approach, as they help de-risk funding for exporters, particularly those within the SME segment.
“The issue is not lack of instruments, but lack of scalable structures that fit local realities. ESG works best when embedded into existing credit structures rather than introduced as standalone products,” he explained.
Mr Gyebi underscored the critical role of risk management in unlocking ESG financing.
He said that while banks have sufficient liquidity to support SMEs and export sectors, risk appetite remains the primary constraint.
“The constraint is not funding, it is risk. Development finance institutions must move from direct lending to risk absorption through guarantees and first-loss structures. Even partial risk coverage can significantly unlock private sector lending,” he added.
ESG requirements
Addressing the challenges faced by SMEs, Mr Gyebi stressed the need to simplify ESG requirements to drive adoption.
He stated that a significant proportion of SMEs lack structured ESG practices, and overly complex frameworks could discourage participation.
“ESG will only scale when it improves access to finance, not when it increases compliance costs. For SMEs, the focus should be on simple, practical metrics linked directly to financing opportunities,” he said.
He urged owners of SME businesses not to view ESG compliance as complex, but rather to begin by implementing the simpler aspects, especially those relating to governance first.
“Once you get the governance aspects, such as appropriate board composition and data privacy right, the social and environmental aspects such as gender inclusion and proper waste treatment begin to fall in place,” he said.
Source:
www.graphic.com.gh