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    • Construction Industry Ghana

    The Construction Industry in Ghana 2017

    Carole Veitch | Ghana | 09 February 2017

    The Construction Industry in Ghana 2015

    Carole Veitch | Ghana | 19 October 2015

    The Construction Industry in Ghana 2015

    Carole Veitch | Ghana | 20 April 2015

    The Construction Industry in Ghana 2014

    Carole Veitch | Ghana | 21 October 2014

    Report Info

    Report Summary Table of Contents
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    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.

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    The Construction Industry in Ghana
    The Construction Industry in Ghana 2017

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    Industry Landscape

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    The Construction Industry in Ghana 2015-10-19

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Construction Industry in Ghana 2015-04-20

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    The Construction Industry in Ghana 2014-10-21

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    Table of Contents

    [ Close ]
    PAGE
    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

    Report Coverage

    This report on the construction industry in Ghana focuses on conditions in the local sector as well as market opportunities for construction companies in all the sectors of the economy. It investigates government initiatives as well as recent developments and factors influencing the success of the sector. The report also profiles 25 foreign and local construction companies, ranging from South African subsidiary, Group Five Construction Ghana Ltd, which has operated in Ghana for the last 15 years and was recently awarded a US$374m tender to design and construct a 350MW gas and oil-fired power plant in Ghana’s Kpone municipality, to wholly-owned Ghanaian company, Proconsult Ltd, headquartered in Accra.

    Introduction

    This report focuses on the construction industry and infrastructure development in the Republic of Ghana. The US$4.5bn industry, which has been identified as a cornerstone of the West African nation’s national development agenda, accounted for more than 12% of Ghana’s annual Gross Domestic Product (GDP) in 2014. Despite the prevailing macro-economic headwinds facing the Mahama administration, the construction sector continues to capitalise on opportunities across all sectors of the economy. With the country entering an election year in 2016, the current government faces the daunting prospect of trying to woo disgruntled voters by delivering on its 2012 election promises on a tight budget. Speaking at an event marking Ghana’s 55th Republic Day Anniversary, President Mahama reiterated the need for fiscal discipline. “I am determined to end the economic boom and bust that comes with every election cycle, no matter the political cost,” he stated. With analysts predicting a closely contested election, it remains to be seen whether the government will manage to curb expenditure, as required by the International Monetary Fund (IMF).

    Strengths

    • Ghana is viewed as a gateway to West Africa. The country’s transit trade corridor, incorporating Lake Volta, serves land-locked 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 infrastructural development.
    • The construction sector has experienced sustained growth in recent years.
    • The Ghanaian government has prioritised infrastructural development and capacity expansion projects.

    Weaknesses

    • Technical and managerial skills are in short supply. Training and skills development programmes are inadequate. Consequently, workmanship is commonly sub-standard.
    • The cost of inputs, particularly, electricity, fuel, building materials and construction equipment is extremely high.
    • The government has failed to formulate a comprehensive development policy for the construction sector.
    • The industry is not well regulated and infringements are seldom punished.
    • Working capital and long term financing are difficult to procure. Interest rates are high.

    Opportunities

    • Numerous construction opportunities are offered by the Economic Community of West African States.
    • Public-Private-Partnerships (PPP) will present a broad spectrum of opportunities.
    • Rising urbanisation, together with the emerging middle class, will continue to drive demand across a multitude of sectors.
    • The diversification of the economy presents many new opportunities.
    • The Ghanaian government has prioritised infrastructure development

    Threats

    • Sustained decline in commodity prices; notably gold, cocoa and crude oil.
    • The influx of foreign and regional competitors, which poses a threat to indigenous contractors.
    • The slowing of growth in the emerging market economies, particularly China.
    • Worsening macro-economic situation, including inflationary pressures and the continued depreciation of the Ghanaian cedi.

    Outlook

    Construction Industry Forecast In view of the current state of Ghana’s economic environment and given that 2016 is an election year, it is anticipated that foreign capital investment will be relatively subdued in the short-term. With public expenditure cuts on the horizon, the Ghanaian government is expected to become increasingly receptive to the prospect of entering into PPPs. Buoyed by the establishment of the Ghana Infrastructure Fund (GIF), construction activity in the extractive industries, transport and real estate sectors is expected to remain particularly robust. Notwithstanding the challenging operating conditions, analysts predict that real growth in the construction industry will average around 6.5% per annum over the next decade. Macroeconomic Outlook Ghana has become highly indebted and with total public debt stock having reached 70.9% of the country’s GDP, borrowing on the commercial market is proving to be increasingly challenging. According to IMF projections, the situation is not expected to improve in the short-term and by the end of 2015, the country is forecast to have a 75% debt-to-GDP ratio. The postponement of Ghana’s fourth Eurobond is widely expected to further inflate the ballooning public debt. Moreover, analysts predict that the country’s widening current and fiscal account deficits will keep the Ghanaian cedi under pressure.Although current macro-economic fundamentals are grim, IMF economists are confident that the implementation of tighter fiscal policies, together with other stabilisation measures will lead to recovery in the medium-term, with growth accelerating to an average rate of around 6.75% per annum. However, Ghana remains extremely exposed to sustained downward pressures on the international benchmark prices of crude oil, gold and cocoa. In view of this, diversification of the Ghanaian economy remains a key priority. Political OutlookNotwithstanding the fact that 2015 is proving to be an ‘annus horribilis’ for President Mahama, the incumbent president is widely touted as the NDC’s presidential candidate in Ghana’s December 2016 election. Although the NDC is confident of another victory at the polls, the opposition has been vociferous in its condemnation of the party’s performance. The IMF bailout remains a bitter point of contention between the ruling and opposition parties.As a member of the Economic Community of West African States (ECOWAS), Ghana continues to play an important role as a facilitator of trade within the West African sub-region. With the development of multi-modal transportation systems linking the country’s ports to rail, road, aviation and barge networks, Ghana is expected to further strengthen its position as one of West Africa’s major regional transit trade corridors.

    Read More..
    The Construction Industry in Ghana
    The Construction Industry in Ghana 2015

    Full Report

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.80 (USD)*

    Buy Now +

    Historical Reports

    The Construction Industry in Ghana 2017-02-09

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Construction Industry in Ghana 2015-04-20

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Construction Industry in Ghana 2014-10-21

    R 1 900.00(ZAR) estimated $106.86 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Value Chain 2
    2.2. Geographic Position 3
    2.2.1. Key Regions and Cities 4
    3. SIZE OF THE INDUSTRY 6
    3.1. Size of the Industry 6
    3.1.1. Key Local and Foreign Players 6
    4. STATE OF THE INDUSTRY 16
    4.1. Local 16
    4.1.1. Corporate Actions 18
    4.1.2. Regulations and Government Programmes 19
    4.1.3. Opportunities for the Construction Industry 21
    4.1.3.1. Transport 21
    4.1.3.2. Energy/Power 25
    4.1.3.3. Water Supply and Treatment 26
    4.1.3.4. Healthcare 27
    4.1.3.5. Education 28
    4.1.3.6. Telecommunications 28
    4.1.3.7. Residential Building 29
    4.1.3.8. Commercial 30
    4.1.3.9. Retail 31
    4.1.3.10. Hospitality 31
    4.1.3.11. Mining and Industrial 32
    4.2. Continental 33
    4.3. International 37
    5. INFLUENCING FACTORS 39
    5.1. Economic Environment 39
    5.1.1. General 39
    5.1.2. Effects on the Construction Sector 41
    5.2. Socio-Political and Socio-Economic Environment 42
    5.3. Infrastructure Deficit 43
    5.3.1. Government Infrastructure Programme Spend 43
    5.3.2. Foreign Direct Investment (FDI) 44
    5.3.3. Private Sector Investment 44
    5.3.4. Public-Private-Partnerships (PPP) 44
    5.4. Urbanisation 45
    5.5. Local Content 46
    5.6. Corruption 46
    5.7. Construction Equipment and Materials: Capacity, Quality and Security of Supply 47
    5.8. Input Costs 48
    5.9. Cyclicality 49
    5.10. Health and Safety Concerns 49
    5.11. Information Technology 49
    5.12. Technology 50
    5.13. Labour Resources 51
    5.13.1. Training and Skills Development 52
    5.13.2. Licensing 53
    5.13.3. Skills Shortages 53
    5.13.4. Opportunities for Foreign Professionals 54
    5.14. Environmental Concerns 54
    6. COMPETITION 55
    6.1. Barriers to Entry 57
    6.2. Public Procurement and the Tendering Process 57
    6.3. Research and Development (R&D) 57
    6.4. Innovation 58
    7. SWOT ANALYSIS 60
    8. OUTLOOK 61
    8.1. Construction Industry Forecast 61
    8.2. Macroeconomic Outlook 61
    8.3. Political Outlook 61
    9. INDUSTRY ASSOCIATIONS 62
    10. REFERENCES 63
    10.1. Publications 63
    10.2. Websites 64
    APPENDIX 1 66
    The Global Competitiveness Index 66
    COMPANY PROFILES 67
    AURECON GHANA 67
    BEROCK VENTURES LTD 69
    CHINA STATE HUALONG CONSTRUCTION GHANA LTD 71
    CONSAR LTD 72
    DE SIMONE LTD 75
    DEVTRACO LTD 77
    EUGO TERRANO LTD 79
    FASAT CONSTRUCTION LTD 81
    GROUP FIVE CONSTRUCTION (GHANA) LTD 83
    ITALCONSTRUCT INTERNATIONAL LTD 85
    JESCAN CONSTRUCTION LTD 87
    M BARBISOTTI & SONS LTD 89
    MANET INTERNATIONAL COMPANY LTD 90
    MICHELETTI & CO LTD 92
    MURRAY & ROBERTS HOLDINGS LTD 94
    PROCONSULT LTD 98
    PROKO GHANA LTD 100
    PW GHANA LTD 102
    ROLIDER LTD 104
    SINOHYDRO CORPORATION LTD 106
    TAYSEC GROUP LTD 109
    TOP INTERNATIONAL ENGINEERING (GHANA) LTD 111
    WBHO GHANA LTD 112
    WILKADO CONSTRUCTION WORKS LTD 114

    Introduction

    This report focuses on the construction sector and infrastructure development in the nation described as the poster child of the ‘Africa Rising’ phenomenon; the Republic of Ghana. Given that it supports all sectors of the Ghanaian economy, construction is viewed as a highly strategic industry and has been identified as a cornerstone of the country’s national development agenda. In 2014, the sector generated revenue of approximately US$4.5bn, accounting for just over 12% of Ghana’s annual Gross Domestic Product (GDP). Despite Ghana’s reputation as an attractive investment destination, a multitude of economic challenges have reined in the rapid rise of the West African nation. While recently implemented measures aimed at restoring macroeconomic stability have generally been welcomed, some stakeholders fear that Africa’s ‘golden child’ may struggle to regain its former lustre, as the country’s grapples with the impact of the crude oil price plunge, as well as weaker gold and cocoa prices.

    Strengths

    • Ghana is viewed as a gateway to West Africa. The country’s transit trade corridor, incorporating Lake Volta, serves land-locked West African countries.
    • Public-private partnerships (PPP) are encouraged.
    • The construction industry serves all sectors of the economy and is a key driver of socio-economic development, providing shelter, employment and infrastructural development.
    • The construction sector has experienced sustained growth in recent years.
    • The Ghanaian government has prioritised infrastructural development and capacity expansion projects.

    Weaknesses

    • Technical and managerial skills are in short supply. Training and skills development programmes are inadequate. Consequently, workmanship is commonly sub-standard.
    • The cost of inputs, particularly, electricity, fuel, building materials and construction equipment is extremely high.
    • The government has failed to formulate a comprehensive development policy for the construction sector.
    • The industry is not well regulated and infringements are seldom punished.
    • Working capital and long term financing are difficult to procure. Interest rates are high.

    Opportunities

    • Numerous construction opportunities are offered by the Economic Community of West African States.
    • Public-private-partnerships (PPP) will present a broad spectrum of opportunities.
    • Rising urbanisation, together with the emerging middle class, will continue to drive demand across a multitude of sectors.
    • The diversification of the economy presents many new opportunities.
    • The Ghanaian government has prioritised infrastructure development

    Threats

    • Sustained decline in commodity prices; notably gold, cocoa and crude oil.
    • The escalation of geo-political tensions.
    • The influx of foreign and regional competitors poses a threat to indigenous contractors.
    • The spread of Ebola throughout West Africa
    • The weakening of global financial markets.
    • Worsening macroeconomic outlook, including inflationary pressures and the continued depreciation of the Ghanaian Cedi.

    Outlook

    Construction Industry Forecast Although Ghana’s current macroeconomic challenges have dampened investor confidence, many analysts believe that the country’s construction sector will remain robust, growing by over 7% in 2015. Activity in the transport, natural resources, power and private residential segments is expected to remain particularly strong. Stakeholders report that the industry has been buoyed by the establishment of the Ghana Infrastructure Fund (GIF). Going forward, the GIF is expected to drive growth by enhancing and streamlining the future implementation of construction projects.Macroeconomic Outlook Analysts forecast that the implementation of tighter monetary policy and other stabilisation measures will result in slower economic growth in the short term, but that economic activity will recover in the medium term, growing at an average annual rate of around 6.75%. However, given Ghana’s high level of public debt, the IMF warns that the risk of the country being downgraded to HIPC status is high and, in view of this, borrowing on the commercial market will prove to be difficult. Notwithstanding initiatives to diversify the Ghanaian economy, the West African nation remains extremely vulnerable to sustained downward pressures on the international benchmark prices of crude oil, gold and cocoa. Political OutlookAlthough Ghana’s Mahama-led National Democratic Congress government has been widely criticised by members of opposition parties for accepting a bailout from the IMF, the country is considered to have solid democratic credentials and continues to be viewed as one of the most politically stable nations in Africa. Although the outcome of the closely contested December 2012 election was challenged by the opposition, the results were upheld by the Supreme Court and the climate of political uncertainty has since eased. The leadership of the re-elected National Democratic Congress has reiterated its commitment to the Gateway Project, which aims to position Ghana as a preferred destination for international trade and investment in the West African sub-region. Given Ghana’s solid track-record over the past two decades, analysts are generally confident that the nation will continue to play an increasingly important role in West Africa.

    The Construction Industry in Ghana
    The Construction Industry in Ghana 2015

    Full Report

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 74.80 (USD)*

    Buy Now +

    Historical Reports

    The Construction Industry in Ghana 2017-02-09

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Construction Industry in Ghana 2015-10-19

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    The Construction Industry in Ghana 2014-10-21

    R 1 900.00(ZAR) estimated $106.86 (USD)*

    View Report Add to Cart

    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION 1
    2.1. Value Chain 2
    2.2. Geographic Position 3
    2.2.1. Key Regions and Cities 4
    3. SIZE OF THE INDUSTRY 6
    3.1. Size of the Industry 6
    3.1.1. Key Local and Foreign Players 6
    4. STATE OF THE INDUSTRY 16
    4.1. Local 16
    4.1.1. Corporate Actions 17
    4.1.2. Regulations and Government Programmes 17
    4.1.3. Opportunities for the Construction Industry 19
    4.1.3.1. Transport 20
    4.1.3.2. Energy/Power 21
    4.1.3.3. Water Supply and Treatment 22
    4.1.3.4. Healthcare 23
    4.1.3.5. Education 24
    4.1.3.6. Telecommunications 24
    4.1.3.7. Residential Building 24
    4.1.3.8. Commercial 26
    4.1.3.9. Retail 26
    4.1.3.10. Hospitality 26
    4.1.3.11. Mining and Industrial 27
    4.2. Continental 27
    4.3. International 30
    5. INFLUENCING FACTORS 31
    5.1. Economic Environment 31
    5.1.1. General 31
    5.1.2. Effects on the Construction Sector 33
    5.2. Socio-Political Environment 34
    5.3. Infrastructure Deficit 35
    5.3.1. Government Infrastructure Programme Spend 35
    5.3.2. Foreign Direct Investment (FDI) 36
    5.3.3. Private Sector Investment 36
    5.3.4. Public-Private Partnerships (PPP) 37
    5.4. Urbanisation 37
    5.5. Local Content 38
    5.6. Corruption 38
    5.7. Construction Equipment and Materials: Capacity, Quality and Security of Supply 38
    5.8. Input Costs 39
    5.9. Cyclicality 40
    5.10. Health and Safety Concerns 40
    5.11. Information Technology 41
    5.12. Technology 41
    5.13. Labour Resources 42
    5.13.1. Training and Skills Development 44
    5.13.2. Licensing 44
    5.13.3. Skills Shortages 45
    5.13.4. Opportunities for Foreign Professionals 45
    5.14. Environmental Concerns 45
    6. COMPETITION 47
    6.1. Barriers to Entry 47
    6.2. Public Procurement and the Tendering Process 47
    6.3. Research & Development (R&D) and Innovation 48
    6.3.1. Research and Development (R&D) 48
    6.3.2. Innovation 49
    7. SWOT ANALYSIS 50
    8. OUTLOOK 51
    8.1. Construction Industry Forecast 51
    8.2. Macroeconomic Outlook 51
    8.3. Political Outlook 51
    9. INDUSTRY ASSOCIATIONS 52
    10. REFERENCES 53
    10.1. Publications 53
    10.2. Websites 54
    COMPANY PROFILES 56
    AURECON GHANA 56
    BEROCK VENTURES LTD 58
    CHINA STATE HUALONG CONSTRUCTION GHANA LTD 60
    CONSAR LTD 62
    DE SIMONE LTD 65
    DEVTRACO LTD 67
    EUGO TERRANO LTD 69
    FASAT CONSTRUCTION LTD 71
    GROUP FIVE CONSTRUCTION (GHANA) LTD 73
    ITALCONSTRUCT INTERNATIONAL LTD 75
    JESCAN CONSTRUCTION LTD 77
    M BARBISOTTI & SONS LTD 79
    MANET INTERNATIONAL COMPANY LTD 80
    MICHELETTI & CO LTD 82
    MURRAY & ROBERTS HOLDINGS LTD 84
    PROCONSULT LTD 88
    PROKO GHANA LTD 90
    PW GHANA LTD 91
    ROLIDER LTD 93
    SINOHYDRO CORPORATION LTD 95
    STRUCTCON LTD 97
    TAYSEC GROUP LTD 99
    TOP INTERNATIONAL ENGINEERING (GHANA) LTD 101
    WBHO GHANA LTD 102
    WILKADO CONSTRUCTION WORKS LTD 104

    Introduction

    This report focuses on the infrastructure sector in one of the world’s fastest growing economies, the Republic of Ghana. Given that infrastructural development is one of the indicators used to determine a country\'s development, the construction industry, which serves all sectors of any economy, is regarded as a sector of strategic importance. Ghana’s construction sector, which generated revenue of approximately US$3.5bn in 2013, representing 11.8% of the country’s annual Gross Domestic Product (GDP), has been identified as a cornerstone of the national development agenda and is the second largest area of investment in the Ghanaian economy. The recent discovery of commercial quantities of offshore oil and gas at Ghana’s Jubilee Field fuelled a construction boom across the country. However, serious economic challenges currently facing the country have significantly eroded business sentiment. With the implementation of austerity measures appearing to be increasingly likely, the construction sector, dogged by project setbacks and payment delays, finds itself confronting the prospect of a possible reduction in the Ghanaian infrastructure development budget. Stakeholders have cautioned that projects may remain on the drawing board, unless sustainable solutions are found to address the critical financing issues facing the industry.

    Strengths

    • Ghana is viewed as a gateway to West Africa. The country’s transit trade corridor, incorporating Lake Volta, serves land-locked West African countries.
    • Public-private partnerships (PPP) are encouraged.
    • The construction industry serves all sectors of the economy and is a key driver of socio-economic development, providing shelter, employment and infrastructural development.
    • The construction sector
    • The Ghanaian government has prioritised infrastructural development and capacity expansion projects.

    Weaknesses

    • Technical and managerial skills are in short supply. Training and skills development programmes are inadequate. Consequently, workmanship is commonly sub-standard.
    • The cost of inputs, particularly, electricity, fuel, building materials and construction equipment is extremely high.
    • The government has failed to formulate a comprehensive policy for the construction sector.
    • The industry is not well regulated and infringements are seldom punished.
    • Working capital and long term financing are difficult to procure. Interest rates are high.

    Opportunities

    • Numerous construction opportunities are offered by the Economic Community of West African States.
    • Public-private-partnerships (PPP) will present a broad spectrum of opportunities.
    • Rising urbanisation, together with the emerging middle class, will continue to drive demand across a multitude of sectors.
    • The diversification of the economy presents many new opportunities.
    • The Ghanaian government has prioritised infrastructure development

    Threats

    • Sustained decline in commodity prices; notably gold, cocoa and crude oil.
    • The escalation of geo-political tensions.
    • The influx of foreign and regional competitors poses a threat to indigenous contractors.
    • The spread of Ebola throughout West Africa
    • The weakening of global financial markets.
    • Worsening macroeconomic outlook, including inflationary pressures and the continued depreciation of the Ghanaian Cedi.

    Outlook

    Opportunities in Ghana’s construction sector are plentiful. However, the growth potential of the industry continues to be constrained by a broad spectrum of challenges. Analysts warn that the envisaged scaled-up delivery of housing and infrastructure development will not progress beyond the drawing-board, unless issues such as poor planning, cost over-runs and spiralling input costs are resolved. The current economic climate has further dampened business sentiment and investor confidence, with several stakeholders expressing concern that the government may be obliged to implement a moratorium on new construction contracts until the country’s macroeconomic stability has been restored. Stakeholders have welcomed the creation of the Ghana Infrastructure Fund (GIF) and generally are optimistic that it will significantly improve the future implementation of projects, while leveraging greater private sector participation.

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    Table of Contents

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    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Supply Chain 2
    2.2. Geographic Position 2
    2.2.1. Key Regions and Cities 3
    3. SIZE OF THE INDUSTRY 4
    3.1. Size of the Industry 4
    3.2. Key Local and Foreign Players 5
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 13
    4.1.2. Regulations and Government Programmes 13
    4.1.3. Opportunities for the Construction Industry 15
    4.1.3.1. Transport 15
    4.1.3.2. Energy/Power 16
    4.1.3.3. Water Supply and Treatment 16
    4.1.3.4. Healthcare 17
    4.1.3.5. Education 17
    4.1.3.6. Telecommunications 18
    4.1.3.7. Residential Building 18
    4.1.3.8. Commercial 19
    4.1.3.9. Retail 19
    4.1.3.10. Hospitality 19
    4.1.3.11. Mining and Industrial 19
    4.2. Continental 20
    4.3. International 21
    5. INFLUENCING FACTORS 22
    5.1. General Trends 22
    5.2. Economic Environment 22
    5.2.1. General 22
    5.2.2. Effects on the Construction Sector 24
    5.3. Socio-Political Environment 24
    5.4. Infrastructure Deficit 25
    5.4.1. Government Infrastructure Programme Spend 25
    5.4.2. Foreign Direct Investment (FDI) 25
    5.4.3. Private Sector Investment 25
    5.4.4. Public-Private Partnerships (PPP) 25
    5.5. Urbanisation 26
    5.6. Local Content 26
    5.7. Corruption 26
    5.8. Construction Equipment and Materials: Capacity, Quality and Security of Supply 26
    5.9. Input Costs 27
    5.10. Cyclicality 27
    5.11. Health and Safety Concerns 27
    5.12. Information Technology 28
    5.13. Technology 28
    5.14. Labour Resources 29
    5.14.1. Training and Skills Development 29
    5.14.2. Licensing 30
    5.14.3. Skills Shortages 30
    5.14.4. Opportunities for Foreign Professionals 30
    5.15. Environmental Concerns 30
    6. COMPETITION 31
    6.1. Barriers to Entry 31
    6.2. Public Procurement and the Tendering Process 31
    6.3. Research & Development (R&D) and Innovation 32
    6.3.1. Research and Development (R&D) 32
    6.3.2. Innovation 32
    7. SWOT ANALYSIS 33
    8. OUTLOOK 34
    8.1. Construction Industry Forecast 34
    8.2. Macroeconomic Outlook 34
    8.3. Political Outlook 34
    9. INDUSTRY ASSOCIATIONS 34
    10. REFERENCES 35
    10.1. Publications 35
    10.2. Websites 35
    COMPANY PROFILES 37
    AURECON GHANA 37
    BEROCK VENTURES LTD 38
    CHINA STATE HUALONG CONSTRUCTION GHANA LTD 40
    CONSAR LTD 41
    DE SIMONE LTD 43
    DEVTRACO LTD 45
    EUGO TERRANO LTD 47
    FASAT CONSTRUCTION LTD 49
    GROUP FIVE CONSTRUCTION (GHANA) LTD 50
    ITALCONSTRUCT INTERNATIONAL LTD 51
    JESCAN CONSTRUCTION LTD 52
    M BARBISOTTI & SONS LTD 54
    MANET INTERNATIONAL COMPANY LTD 55
    MICHELETTI & CO LTD 57
    MURRAY & ROBERTS HOLDINGS LTD 59
    PROCONSULT LTD 63
    PROKO GHANA LTD 65
    PW GHANA LTD 66
    ROLIDER LTD 68
    SINOHYDRO CORPORATION LTD 69
    STRUCTCON LTD 70
    TAYSEC GROUP LTD 71
    TOP INTERNATIONAL ENGINEERING (GHANA) LTD 73
    WBHO GHANA LTD 74
    WILKADO CONSTRUCTION WORKS LTD 75

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