In Ghana, the construction sector appears to be performing well, and contributes substantially to gross domestic product (GDP) and employment. For example, the demand for cement, a key indicator of construction activity, is expected to increase consistently from 8.8 million metric tonnes in 2017 to 12.5 million by 2021.
The $8 billion Ghanaian construction sector, which accounted for 18.8 percent of the nation’s annual GDP in 2018, is a central pillar of Ghana’s National Development Plan. Provisional estimates released by Ghana Statistical Service indicate that the construction industry recorded a growth rate of 18.3 percent year-on-year for the third quarter of 2018. The industry provides employment for approximately 420,000 people and an estimated 2,500 active building and construction contractors currently operate in the Ghanaian market. Players range from indigenous micro-enterprises and individual contractors to foreign multinational civil engineering and construction giants.
|U.S. Dollars Millions||2016||2017||2018||2019|
|Total Production/ Year (GDP)||488.38||532.76||638.47||178.30|
|Total Housing Unit deficit (thousand)||156,725.55||188,352.50||199,185.99||206,896.55|
The industry provides employment for approximately 320,000 people and an estimated 1,500 active building and construction contractors currently operate in the Ghanaian market. Players range from indigenous micro-enterprises and individual contractors to foreign multinational civil engineering and construction giants.
Tema and Takoradi Ports are undergoing significant expansions. As part of a PPP with Meridian Port Services — a joint venture between the Ghana Ports and Harbours Authority, France’s Bolloré Group and Netherlands-based APM Terminals — Tema is receiving a $2.5bn upgrade, including construction of a $1.5bn facility alongside the existing port. Takoradi will also experience a $450m upgrade to increase capacity and reduce congestion
The first phase of the new multi-purpose on-dock container terminal at the Takoradi Port, which is being undertaken by wholly-owned Ghanaian firm Ibistek, will be completed by the third-quarter of 2021, according to the project implementer.
The first phase of the project involves the construction of 600 metres of quay wall, out of a project total quay length of 1,700 metres over a 62-hectare surface area. The terminal will have deep berths that will be able to accommodate vessels that carry containers up to 19,000 TEUs (Twenty-Foot Equivalent Units).The facility is expected to attract diverted container traffic, particularly from the Port of Tema and other neighbouring ports such as Lomé and Abidjan, which is estimated to reach in excess of 33,000TEUs by 2040.
Boankra Inland Port and Eastern Rail Corridor is a much-anticipated project that would bring trade services significantly closer to communities in northern Ghana and its landlocked, inland neighbours. Construction of this dry port is taking place 26 km from Kumasi, on a 161.2-ha site, and will require the refurbishment of 330 km of cape-gauge track. PwC is serving as the transaction advisor on this project, which will be opened for bidding soon.
Ghana is the among the fastest growing and progressing economies in the Africa and the best performing in economic activities in the West Africa, with construction engineering real estate and power energy sector combined contributing to over 30% of the Ghanaian annual income. Ghana’s stress for rising energy/power production through renewable energy sources particularly solar and hydropower (conventionally the focused in the segment) to 10% has also paved way for more energy sources, conservation storage and reuses in the country owing to power requirement for residential, commercial and industrial demand in the country plus export requirement to neighboring West African countries like Togo Benin etc.
With rising residential commercial construction and public infrastructure works with real estate ventures in the Ghana, in the major cities like Accra, Tema, Takoradi, Kumasi and in the suburbs with rising industrial activities, have resulted in demand for electrical products and lightings and transmission items in big and small, other than generator and convertors. Electrical products and equipment are among the top listed items in the Ghanaian import bill as like in any progressive economies, tallying about USD 685 Mn in 2019.
Though generator sets and converters hold the largest share in the segments import in Ghana, the other major products like inverters, batteries, wires cables switches, electric board meter panels, lightings etc. together make the maximum share in the importation and likewise the market demand. Power outages still remains to be a major issue with Ghana as demand for electricity has grown because of the development however the supply is still inadequate to meet the demand, so nearly every commercial and apartment condominium has provision for generators and/or invertors to withstand with the outages/fluctuations.
It’s interesting to know that major chunk of the electrical supplies to Ghana is from Asia, lead by China followed by Turkey, India and Hong Kong. China’s share in the Ghanaian electrical importation had a drastic decline and expected to continue the trend, on the other hand share of India have been consistent. Electrical product lines like inverters batteries, wires cables switches, boards panels, and generators remains the main product exported by India to Ghana and the same products are majorly imported by Ghana in the segment. Indian exports of electrical items stand at USD 36Mn in 2019 (over 5% share in Ghanaian imports).