ConstructAfrica Report Explores Ghana’s Construction Industry
The Ghanaian construction industry has clocked considerable achievements.
With a booming economy in West Africa, the Ghanaian construction industry plays a significant role in Ghana's economic growth and development, contributing more than 15% to the country’s Gross Domestic Product (GDP). It also employs approximately 420,000 people.
Let’s walk through its history, present state, local construction players, and outlook.
Pre-colonial Ghana saw a variety of traditional building techniques to construct homes, community buildings, and places of worship. With the construction of public buildings such as schools, hospitals, and government offices, colonial Ghana saw a boost in construction activities. Post-independence, in 1957, the construction industry grew, and Ghana slowly transitioned to modern architecture.
The economic downturn of the 1970s and 1980s decreased construction activities. The 1990s saw the industry’s recovery with the government’s economic reforms and policies that boosted private sector interest.
The Ghana construction industry is experiencing an uptick, with significant investment in infrastructure development. The government's commitment to developing the sector has attracted local and foreign investors, leading to the emergence of several construction companies. The Public-Private Partnerships (PPP) Bill, first drafted in 2016, was finally implemented and was vital to driving growth in the construction industry.
The Covid outbreak saw a swift response from the government in the “Ghana Beyond Aid” initiative. Its fundamental goal was to diversify Ghana’s manufacturing base and overhaul its taxation structure, helping it maintain its economic resiliency. The initiative covers infrastructure investment and industrialization projects.
The “One District, One Factory” scheme implemented will further support the industry in the form of 150 projects currently at different construction stages. Out of this, 104 projects have been completed and are operational.
Activation of the African Continental Free Trade Area (AfCFTA) is also helping to support and sustain growth in the industry through the facilitation of cross-border trade and travel.
A mix of SMEs and large construction companies dominate the market. These companies have the resources and expertise to undertake and support large-scale construction projects and have been instrumental in developing Ghana's infrastructure.
Local Construction Players
The Ghana construction industry has several locally established players that have helped develop local talent and resources. A few key players are:
- John Murphy Construction - Construction company specialising in civil works and the construction of commercial, industrial and steel structures. It is a subsidiary of LMI holdings, a Ghanaian conglomerate with operations across the construction, property development, logistics, utilities, and information and communication technology industries.
- Associated Consultants Ltd - Provides multi-disciplinary consultancy services in Architecture, Civil/Structural Engineering, Quantity Surveying and other related fields in infrastructure development in Ghana and the Africa region.
- Taysec Construction Limited – established in 1947 and reported to be Ghana's oldest construction firm. The company provides provides construction management and specialist construction services including building and civil engineering construction, multi-disciplinary design, project management, and facilities management services.
The future of the Ghana construction industry looks promising. The industry is expected to achieve an average annual growth rate (AAGR) of more than 4% from 2023 to 2026. with new construction companies emerging and existing companies expanding their operations.
However, the industry still faces challenges, including a shortage of funding, inadequately skilled labour, and a lack of regulatory oversight. Overcoming these challenges will be the key to ensuring the industry’s continued growth.
In conclusion, the Ghana construction industry has come a long way and will continue to expand further and play a significant role in the country’s economic growth and development.
Entering the Market
If you want to invest in or explore the Ghana construction industry, now is the time. Contact us today to learn more about ConstructAfrica’s Ghana Construction Market Report and how we can help you take advantage of the opportunities available in this booming industry.
Top Photo: Four Tier Pokuase Interchange, Accra-Ghana (associatedconsultantsltd.com | Associated Consultants, Ghana)