The creation, repair, maintenance, alteration and demolition of buildings, highways, streets, bridges, roads, sewers, railways, and communication systems comprises a significant market in Ghana. 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.
Construction has been central to Ghana’s development over the past decade, contributing 7.2% of GDP between 2013 and 2021. In recent years the greater activity and growth in the real estate sector has contributed to Ghana’s continued economic expansion.
Key Construction Subsectors
Key construction subsectors in Ghana include:
- Housing and urban development, including the construction of residential buildings and municipal and commercial buildings.
- Infrastructure, such as water and sanitation.
- 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.
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.
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Opportunities in the Construction Sector
Opportunities in the construction sector include:
- Construction, maintenance, and services for roads and railways.
- Rail upgrades and passenger rail transport on selected rail corridors.
- Lake transportation systems.
- Air transport operators for domestic and sub-regional services.
- Upgrading of existing trunk roads.
- Affordable housing construction and property.
- Sale of affordable and durable building materials such as fixtures and furnishings.
As the construction industry redefines its priorities to ensure sustainability, there is increasing recognition of the benefits of regenerative architecture as a means of lowering emissions.
Proposed or Ongoing Projects in Ghana
Several projects are either proposed or ongoing in Ghana, indicating the sector's dynamism. These include:
- Keta Port Project
- District and regional hospitals project
- West Africa Petroleum Hub
- Takoradi Gas Tank Farms
- Gas Pipelines - laying pipelines in mining areas around Tarkwa
- Expansion of Secondary Schools 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
Market Dynamics and Growth
With a housing deficit estimated to be 1.8m units, Ghana is looking to boost the number of residential premises by providing tax incentives to local and foreign investors to develop affordable housing. The government has been actively promoting and facilitating private sector participation in infrastructure delivery, crucial for economic growth and development through revenue generation, affordable housing and employment. The private sector has been providing expertise, innovation and efficiency, greatly enhancing the speed and quality of infrastructure projects within Ghana.
Although infrastructure development dominates the sector, other segments are exhibiting strong growth potential, such as the commercial, industrial, residential and energy spaces. Despite the impact of the Covid-19 pandemic and other external shocks, Ghana’s GDP growth is expected to moderate in 2024 and 2025 thanks to the proactive measures undertaken by the government. One example of such initiatives is the Domestic Debt Exchange Programme, which has helped stabilise the local economy and provide greater fiscal stability.
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Growth in 2024 will also be supported by the planned completion of 6,000km of road, 120 bridges and 20 interchanges by the end of the year.
According to the 2024 Budget, real GDP is forecast to grow at an average rate of 2.8% between 2024 and 2027, while real non-oil GDP is expected to grow by an average of 2.1% during the period. Ghana's construction industry is expected to register an average annual growth rate of 5.4% from 2025 to 2028, supported by investment in the industrial and energy sectors. The country aims to increase the share of renewable energy in the total electricity mix to 10% by 2030 and plans to generate 30% of its electricity from nuclear energy by 2070.
In September 2023, the country launched the "Energy Transition and Investment" plan, aimed at achieving net zero emissions by 2060. The plan focuses on four decarbonization technologies, renewables, low-carbon hydrogen, battery electric vehicles, and clean cookstoves.
Delays in payment by the Government of Ghana for projects - especially in the road sector - is a common phenomenon.
| Indicator | Value/Target |
|---|---|
| Construction Sector Contribution to GDP (2013-2021) | 7.2% (average) |
| Forecasted Real GDP Growth (2024-2027) | 2.8% (average) |
| Forecasted Construction Industry Growth Rate (2025-2028) | 5.4% (average) |
| Renewable Energy Target by 2030 | 10% of total electricity mix |
| Nuclear Energy Target by 2070 | 30% of electricity generation |
Working in Ghana’s construction sector – Patrick’s story
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