Building & Construction

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Construction and Infrastructure Industry Overview The creation, repair, maintenance, alteration and demolition of buildings, highways, streets, bridges, roads, sewers, railways, and communication systems comprises a significant market in Ghana. Key construction subsectors in Ghana include 1) housing and urban development including the construction of residential buildings and municipal and commercial buildings; 2) infrastructure such as water and sanitation; and 3) transportation infrastructure such as roads, airports, ports, and harbors. The demand for construction and infrastructure development to address housing needs, upgrade roads for freight transport, and create transport corridors for exports, among other areas, remains strong. The approximately $8 billion Ghanaian construction sector has accounted for more than 15% of the nation’s annual GDP in recent years. This industry provides employment for approximately 420,000 people. 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. Delays in payment by the Government of Ghana for projects – especially in the road sector - is a common phenomenon. The Ghana Chamber of Construction estimates those arrears to be $1 billion as of April 2023. Inflation that has hit the broader economy is increasingly a factor in construction as well. The Construction Producer Price inflation rate for April 2023 was 20.9 percent year-on-year. Further, GDP generated by the construction sector declined significantly in the last quarter of 2022 and first quarter of 2023. Proposed or Ongoing Projects in Ghana Keta Port Project Ghana is in the process of developing a third commercial port in the coastal town of Keta in eastern Ghana, near Ghana’s Volta River region and a short distance from Togo’s capital, Lomé. This project is part of Ghana’s broader plan to develop port infrastructure, including the existing commercial ports of Tema and Takoradi and the proposed inland ports to be located at Boankra and Mpakadan. The Government of Ghana views improving Ghana’s port/transportation infrastructure as essential to facilitate commercial activity and to ensure, in turn, that Ghana can realize the anticipated economic benefits from increased regional trade resulting from the African Continental Free Trade Area (AfCFTA). District and regional hospitals project West Africa Petroleum Hub Takoradi Gas Tank Farms Gas Pipelines laying pipelines in mining areas around Tarkwa Secondary Schools Expansion under the Second Cycle system Affordable Housing Accra Marine Drive Tourism Project Tetteh Quashie Cocoa Museum Cape Coast Slavery Museum Petronia City Project Rail network including several rail lines within Ghana and regional lines; a coastal line running from Nigeria through Ghana to Côte d’Ivoire; and a North-South line from Ghana to Burkina Faso Industry Players The construction industry in Ghana is composed of building project consultants, engineers, architects, quantity surveyors, building contractors, and artisans. The Chamber of Construction Industry Ghana is responsible for promoting the activities of this industry, from advocating to helping find overseas suppliers. Contact CS Ghana to understand the details of how contractors are classified and how this could affect your business.

Source: US International Trade Administration 2023

External Links (QR codes vers L3)

• Ghana GDP from Construction & Real
• Construction Estate Report 2022