Construction activity in Ghana to remain heightened – International construction firms told
Construction activity in Ghana is said to remain heightened on the back of a well-stocked pipeline of planned road construction projects in the country.
International construction firms have been advised to take keen interest in the nation’s road construction sector given the substantial number of unpaved roads and the demand for maintenance, upgrading and construction of roads by Ghanaians.
“Ghana has one of Sub-Saharan Africa’s longest existing roads networks, ranking among the region’s top five. The high level of current construction activity is highlighted by the large number of road infrastructure projects currently under construction in Ghana. A well-stocked pipeline of planned road construction projects indicates that construction activity in the sector will remain heightened,” said Fitch Solutions in its recent analysis of the country’s road infrastructure.
Ghana Roads Construction Outperforms Industry Peers In SSA
Selected Markets – No. Of Roads & Bridges Projects Under Construction & Construction Industry Value
According to Fitch Solutions, the risk profile of Ghana’s construction sector particularly the road construction sub sector, is attractive compared with its peers on the continent.
The sector’s attractive risk profile the research agency notes, is supported by an open competitive landscape, availability of cost-effective labour, and wide access to development funding.
Ghana Industry Risk Profile Outperforms Many Economic Peers
SSA – Industry Risk Score & Construction Industry Value, USDbn
“Access to infrastructure construction and financing opportunities in Ghana is widened by an open competitive landscape. Ghana’s construction industry is the most diverse in Sub-Saharan Africa, hosting contractors of more distinct nationalities than any other market in the region.
“A comparatively low number of Chinese- and French-held shares of key construction roles enables the diversity of the construction competitive landscape to translate into significant opportunities for a wide range of international construction firms,” remarked Fitch Solutions.
Adding international construction firms currently active in Ghana’s road construction sector benefit from a comparatively attractive labour market, characterised by a large, expanding workforce, strong female participation, and low labour costs.
The agency however, warned international construction firms that they face risks of high severance pay requirements for labour and rigid wage determination structures, all which limit firms’ flexibility in adjusting their labour requirements in response to economic shocks.