Ghana Receives £27M Green Loan From UK For Clean Drinking Water

On Saturday, the UK government announced it would provide a £27M (around US$35.5M) green loan to fund the use of solar energy to sterilize drinking water for rural communities in Ghana, Africa.

It will accomplish this using technology developed by a UK-based firm called Aqua Africa.

The UK Export Finance (UKEF) green loan to the Ghanaian government comes after an agreement between the country’s sanitation & water resources ministry and Aqua Africa in support of a project that has goals to alleviate roughly 225,000 people in Ghana from day-to-day water poverty.

The project will start this month with a ground delivery plan and community engagement drills. By January next year, filtration units will be installed to deliver water to 75 communities, providing clean water to 22,500 people. The 18 months that follow will involve five more phases that will deliver the water pipe system to the remaining 200,000 people.

Cecilia Dapaah, Ghana’s Minister of Sanitation & Water Resources, explained:

The fulfillment of our basic human needs in our environment is essentially dependent on adequate clean water. Increasing water coverage requires a consistent investment on year to year basis since population growth and demand for water keeps increasing. That is why we welcome wholeheartedly the investment in the Aqua Africa Project.

The UK government also stated that the water sanitation loan is part of a £140M (US$184M) package of financial support for Ghana, which also includes:

  • Over £70M (US$92) in guarantees and direct loans to fund the construction of a new main commercial road between Tema and Aflao,

According to the UK’s Exports Minister, Graham Stuart, the direct loans come at zero cost to the taxpayer. It shows how the UK “is making a lasting and real difference to communities across the globe.”

Stuart said:

We are proud  to lead the world in our efforts to transition to net-zero emissions, and UKEF is backing British exporters to support other countries to meet their Paris climate goals. UKEF’s support for Aqua Africa demonstrates this government’s commitment to exporters with green credentials by ensuring they have the support needed to win international business during the coronavirus pandemic and beyond.

The green loan is the first of its kind in Africa. It will play a vital role in the push to deliver on the UN Sustainable Development Goals covering clean water, sanitation, and climate action.

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