Report Coverage
The detailed report on the Ghanaian construction industry focuses on conditions in the sector, including current and planned construction projects, as well as factors influencing the industry’s success. Profiles for 25 companies are provided, including foreign multinational companies such as Murray & Roberts Holdings Ltd and China State Hualong Construction Ghana Ltd, which dominate the civil construction market and high-value projects. Also profiled is Micheletti & Co. Ltd, one of numerous local Ghanaian-registered construction companies where partnerships have been established between expatriate and indigenous contractors.
Introduction
The construction industry is a central pillar of Ghana’s National Development Plan. The US$5bn sector, which accounted for 14.8% of the nation’s annual GDP in 2015, supports infrastructure development projects in Ghana, as well as across the West African sub-region. With the development of multi-modal transportation systems linking Ghana’s ports to rail, road, aviation and barge networks, the oil-producing nation has positioned itself as a major regional transit trade corridor within West Africa. However, after sustaining robust growth for more than two decades, the Ghanaian economy has floundered, slowing to its lowest level since 1990. While the country’s economic environment remains a significant concern, many role players in Ghana’s construction industry are confident that the recent inauguration of the New Patriotic Party’s Nana Addo Dankwa Akufo-Addo as President of Ghana will reinvigorate the sector.
Strengths
• A National Infrastructure Plan has been formulated, which prioritises the roll-out of projects over a period of 40 years.
• Ghana is viewed as a gateway to West Africa. The country’s transit trade corridor, incorporating Lake Volta, serves landlocked West African countries.
• Public-Private Partnerships (PPPs) are encouraged.
• The construction industry serves all sectors of the economy and is a key driver of socio-economic development, providing shelter, employment and infrastructure.
• The construction sector has experienced sustained growth in recent years.
Weaknesses
• Although the construction industry is highly regulated, there is little enforcement and infringements are seldom punished.
• Construction delays are common due to complex bureaucratic procedures relating to the issuing of the relevant permits.
• Corruption and tender fraud are not uncommon in the industry.
• Ghana’s construction industry has a poor safety record.
• Technical and managerial skills are in short supply and as training and skills development programmes are inadequate, workmanship is commonly sub-standard.
• The cost of inputs, particularly, electricity, fuel, building materials and construction equipment is high.
• There is a high level of reliance on the public sector.
• Working capital and long-term financing are difficult to procure and interest rates are high.
Opportunities
• Numerous opportunities exist in the public sector.
• Population growth and rising urbanisation, as well as the emerging middle class, will continue to drive demand across a multitude of sectors.
• Public-Private Partnerships (PPPs) offer a broad spectrum of opportunities.
• Regional construction opportunities are offered by the Economic Community of West African States (ECOWAS).
• The diversification of the economy presents many new opportunities.
• The renewable energy segment has been identified as a growth area.
Threats
• External global pressures, as well as the sustained weakness of commodity prices, notably gold, cocoa and crude oil.
• Macroeconomic pressures.
• The delayed implementation of large projects and/or the failure to implement proposed public sector infrastructure development projects.
• The influx of foreign and regional competitors, which poses a threat to indigenous contractors.
• The slowing of growth in both the developed and emerging market economies, particularly China, which could result in lower levels of investment.
Outlook
Political commentators predict that President Akufo-Addo’s brand of moderate centre-right politics, coupled with his resolve to rid Ghana of corruption, will do much to restore confidence in the West African nation. Foreign investment is widely anticipated to rebound, facilitating the completion and development of infrastructure projects across all sectors. Construction activity is expected to be particularly brisk in the transport and power sectors, as well as in the affordable housing and middle income residential segments. The recently inaugurated NPP administration is expected to collaborate closely with private construction companies and the announcement of further PPP projects is anticipated. Although exchange rate volatility remains a concern, the IMF predicts that the Ghanaian economy will rally, growing by 7.4% in 2017 and by 8.4% in 2018.
Full Report
R 1 900.00(ZAR) estimated $105.22 (USD)*
Industry Landscape
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Historical Reports
The Construction Industry in Ghana 2015-10-19
R 1 900.00(ZAR) estimated $105.22 (USD)*
View Report Add to CartThe Construction Industry in Ghana 2015-04-20
R 1 900.00(ZAR) estimated $105.22 (USD)*
View Report Add to CartThe Construction Industry in Ghana 2014-10-21
R 1 900.00(ZAR) estimated $105.22 (USD)*
View Report Add to CartTable of Contents
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1. | INTRODUCTION | 1 |
2. | DESCRIPTION OF THE INDUSTRY | 1 |
2.1. | Industry Value Chain | 2 |
2.2. | Geographic Position | 3 |
3. | SIZE OF THE INDUSTRY | 6 |
4. | STATE OF THE INDUSTRY | 17 |
4.1. | Local | 17 |
4.1.1. | Opportunities in the Construction Industry | 19 |
4.1.1.1. | Transport | 19 |
4.1.1.2. | Roads | 19 |
4.1.1.3. | Railways | 20 |
4.1.1.4. | Ports and Harbours | 20 |
4.1.1.5. | Airports | 21 |
4.1.1.6. | Energy/Power | 22 |
4.1.1.7. | Water Supply and Treatment | 23 |
4.1.1.8. | Healthcare | 24 |
4.1.1.9. | Education, Sport and Recreation | 25 |
4.1.1.10. | Telecommunications | 26 |
4.1.1.11. | Residential Building | 26 |
4.1.1.12. | Commercial | 28 |
4.1.1.13. | Retail | 28 |
4.1.1.14. | Hospitality | 29 |
4.1.1.15. | Mining and Industrial | 30 |
4.1.2. | Corporate Actions | 30 |
4.1.3. | Regulations and Government Policies | 31 |
4.2. | Continental | 34 |
4.3. | International | 37 |
5. | INFLUENCING FACTORS | 39 |
5.1. | Government Interventions | 39 |
5.2. | Economic Environment | 40 |
5.3. | Socio-Political and Socio-Economic Environment | 42 |
5.4. | Infrastructure Deficit | 43 |
5.4.1. | Government Infrastructure Programme Spend | 43 |
5.4.2. | Foreign Direct Investment (FDI) | 44 |
5.4.3. | Private Sector Investment | 44 |
5.4.4. | Public-Private Partnerships (PPPs) | 44 |
5.5. | Urbanisation | 45 |
5.6. | Local Content | 45 |
5.7. | Corruption | 46 |
5.8. | Construction Equipment and Materials: Capacity, Quality and Security of Supply | 46 |
5.9. | Input Costs | 48 |
5.10. | Cyclicality | 48 |
5.11. | Health and Safety Concerns | 48 |
5.12. | Technology, Research and Development (R&D) and Innovation | 49 |
5.13. | Labour | 53 |
5.14. | Environmental Concerns | 55 |
6. | COMPETITION | 56 |
6.1. | Barriers to Entry | 58 |
7. | SWOT ANALYSIS | 59 |
8. | OUTLOOK | 60 |
9. | INDUSTRY ASSOCIATIONS | 61 |
10. | REFERENCES | 62 |
10.1. | Publications | 62 |
10.2. | Websites | 63 |
APPENDIX 1 | 66 | |
The Global Competitiveness Index 2016-2017: Ghana | 66 | |
COMPANY PROFILES | 67 | |
AURECON GHANA | 67 | |
BEROCK VENTURES LTD | 69 | |
CHINA STATE HUALONG CONSTRUCTION GHANA LTD | 71 | |
CONSAR LTD | 72 | |
DAVID WALTER LTD | 75 | |
DE SIMONE LTD | 77 | |
DEVTRACO LTD | 80 | |
EUGO TERRANO LTD | 82 | |
FASAT CONSTRUCTION LTD | 84 | |
GROUP FIVE CONSTRUCTION (GHANA) LTD | 86 | |
ITALCONSTRUCT INTERNATIONAL LTD | 88 | |
JESCAN CONSTRUCTION LTD | 90 | |
M BARBISOTTI & SONS LTD | 92 | |
MANET INTERNATIONAL COMPANY LTD | 94 | |
MICHELETTI & CO LTD | 96 | |
MURRAY AND ROBERTS HOLDINGS LTD | 98 | |
PROCONSULT LTD | 102 | |
PROKO GHANA LTD | 104 | |
PW GHANA LTD | 106 | |
ROLIDER LTD | 108 | |
STRUCTCON LTD | 110 | |
TAYSEC GROUP LTD | 112 | |
TOP INTERNATIONAL ENGINEERING (GHANA) LTD | 114 | |
WBHO GHANA LTD | 115 | |
WILKADO CONSTRUCTION WORKS LTD | 117 |