Ghana - Construction and Infrastructure Industry

Construction and Infrastructure Industry

Last published date: 2023-11-26

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 (see our Market Intelligence Report)
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

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.

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 and property – please see our latest market intelligence report.
Sale of affordable and durable building materials such as fixtures and furnishings

(See the Selling to the Public Sector section for more information about tenders, bidding procedures and approaches. Commerce Service Ghana can provide support for business activity in the public sector.)

Contact: U.S. Commercial Service Ghana Commercial Specialist PaaEkow Quansah at Office.Accra@trade.gov or +233 (0) 30 274 1329 for more information on this sector.

Resources

Description of 2013 Local Content Law

Ghana Investment Promotion Center