The construction sector in Ghana is expanding rapidly with a recent 20% growth in 2011 making it the second largest contributor to the National GDP in that financial year.
The government is the major developer in the construction industry, dominating both in terms of contracts offered and funds allocated to projects.
Ghana has abundant resources such as raw materials especially lumber, stone, and lime with a large pool of inexpensive, trainable labour. Exposure to the huge Economic Community of West African States (ECOWAS) with its market of over 250 million people along with the current oil finds in commercial quantities and firming prices of other minerals, experts have predicted that the industry is poised for an unprecedented growth.
There is ample opportunity for UK companies to enter Ghana’s construction industry. With the booming real estate industry and high demand for infrastructure development, Ghana provides a wide range of possibilities for companies entering the market. Most non-emergency government contracts for road construction are open to both local and international companies through a process of competitive bidding. There are many smaller local companies that would also be seeking partnership for financial assistance, equipment and training.
Ghana has increasing potential for investment in real estate which, until recently, remained largely unexplored. In recent years the industry has seen a surge of foreign companies investing in hotels, office buildings, commercial space and warehouses.
Key market opportunities in Ghana’s construction sector are dominated by residential and commercial development. The residential market is the most active, registering an estimated 85,000 transactions per annum over the past decade. Its housing deficit is currently hitting the one million mark with its annual housing requirement of about 130,000 units outstripping its supply of about 45,000 units. There are opportunities with:
Commercial property is the second largest segment in the market and includes office accommodations and retail space. Industrial property (light industrial parks, warehousing facilities), Commercial buildings (regional and local shopping centres/malls, office accommodation, storage etc) as well as provision of construction equipment and building materials.
Low cost housing. Precast housing technology will be ideal in meeting fast delivery requirements where the demand is strong and effective.
The Accra-Tema corridor. Several areas have been zoned as industrial sites, although these are yet to be sold or let. Actual development may be carried out by commercial developers or individual lessees’.
Getting into the market
The Ghana Investment Promotion Centre (GIPC) is a government agency, re-established under the Ghana Investment Promotion Centre Act, to encourage, promote and facilitate investments in all sectors of the economy except mining and petroleum. Website: www.gipcghana.com
Public Procurement Authority (PPA) is the only lawful governing body, tasked with offering public/government tender opportunities and awarding bids. Authentic bids are posted on their website: www.ppbghana.org
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.
West Africa Building & Construction 2013 Exhibition & Seminars. Accra – Ghana. 22-24 May 2013, Website: www.ace-events.com