Ghana - Country Commercial Guide
Construction and Infrastructure

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2020-08-31

Overview of the sector:

Construction refers to the creation, repair, maintenance, alteration and demolition of buildings, highways, streets, bridges, roads, sewers, railways and communication systems. Key construction subsectors in Ghana include housing and urban development - residential buildings; municipal and commercial buildings; infrastructure - water and sanitation; energy; and transport infrastructure – roads, airports, ports and harbors. The government of Ghana is working to provide sufficient investment in the construction sector so that it is able to respond adequately to the oil-fueled increase in demand for construction and infrastructure development.

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.

Current position of the industry

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

Total Imports

120.13

122.59

138.66

108.26

Local Production

23.20

33.52

45.56

89.55

Proposed or Ongoing Projects in Ghana

  • Rail network, including several rail lines within Ghana and regional lines; a coastal line running from Nigeria through Ghana to Cote d’Ivoire; and a North-South line from Ghana to Burkina Faso
  •  District and regional hospitals project
  • West Africa Petroleum Hub - proposed
  • Takoradi Gas Tank Farms
  • Gas Pipelines – laying pipelines in mining areas around Tarkwa
  • Ghana Trade Fairground Redevelopment
  • Expansion of Secondary Schools under the Second Cycle system
  • Affordable Housing
  • Accra Marine Drive Tourism Project
  • Tetteh Quashie Cocoa Museum
  • National Cathedral
  • Cape Coast Slavery Museum
  • Petronia City Project

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 governing and regulating the activities of this industry, from advocating to helping find overseas suppliers.

Contractors in Ghana are classified under the housing and roads and civil works subsectors. This classification is made primarily based on the company’s financial resources, human resource capacities and level of technology (i.e. type and efficiency of equipment employed). However, there are different classifications for contractors in the housing and roads subsectors. Those in the housing subsector are grouped into four classifications, depending on the value of the project to be implemented. Please find classification below:

  1. Contractors with the capacity to execute projects that are above $500,000 in value
  2. Contractors that have the capacity to execute projects up to a value of $500,000
  3. Contractors having the resources to implement projects with a maximum value of $200,000
  4. Contractors with the means to carry out projects with a maximum value of $75,000.

Opportunities for U.S. companies

  • 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
  • Sale of affordable and durable building materials i.e. fixtures and furnishings

How projects tenders operate:

All infrastructure projects go through the Public Procurement Act tender process via either

  1. Competitive tendering
  2. Selective tendering
  3. Sole-source tendering

All government tenders are advertised on the relevant Ministry’s website. Bid documents then go through final evaluation based on price and quality of service.

Here are some factors that add value to bid documents for public tenders:

  1. Identifying a funding source
  2. Providing feasibility studies for the project
  3. Partnership with a local company

Resources

GIPC Ghana

CM Online

Public Procurement Authority (Ghana)

Trading Economics (Ghana)