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BMI View: Although still largely underdeveloped Ghana shows potential based on a relatively strong business environment and growing interest in foreign investment. Transport and energy projects are expected to grow as the oil & gas industry in the country expands. We forecast year-on-year (y-o-y) growth of 10.2% in 2013 for the country’s construction industry, with an average of 7.6% y-o-y growth anticipated between 2013 and 2017. Construction industry value is expected to stand at US$3.5bn in 2013, rising to US$6.1bn by end-2017.
The key developments in the sector are:
We are sanguine on Ghana's growth prospects for the 2013-2021 period and forecast annual real GDP growth to average 6.5% per annum. The ramping up of domestic oil production will provide significant impetus to the economy, allowing the mitigation of fiscal and current account drags.
BMI View: Although still largely underdeveloped Ghana shows potential based on a relatively strong business environment and growing interest in foreign investment. Transport and energy projects are expected to grow as the oil & gas industry in the country expands. We forecast year-on-year (y-o-y) growth of 10.2% in 2013 for the country’s construction industry, with an average of 7.6% y-o-y growth anticipated between 2013 and 2017. Construction industry value is expected to stand at US$3.5bn in 2013, rising to US$6.1bn by end-2017.
The key developments in the sector are:
- In 2010, Ghana agreed to receive two Chinese loans totalling US$13bn, reflecting the country’s infrastructure-for-oil concessions strategy in the region, US$9.87bn was assigned to build up Ghana's infrastructure (including road, rail and dam projects). The second loan, signed with the Chinese Development Bank (CDB) and worth US$3bn, is to fund oil and gas infrastructure. The first tranche worth US$1bn was cleared by Beijing for disbursal in April, yet remains at the centre of political debate in Ghana: the presidential candidate of the opposition NPP, Akufo Addo, has announced that he would renegotiate the loan were he to win the looming presidential election (December 2012). The loans would likely support the work of China Communications Construction Company (CCCC), which has shown an interest in investing in projects to expand roads, railways and harbours in Ghana. The company will receive assistance from the China Development Bank (CDB), the China Exim Bank and other foreign financial institutions for the implementation of the projects.
- Abu Dhabi National Energy Company (TAQA) was granted financial assistance of US$355mn, as well as government approval, to expand its power plant in Ghana. TAQA is 75%- owned by the Abu Dhabi government and is aiming to expand the capacity of its Takoradi 2 power plant from 220 megawatts (MW) to 330MW. The power plant accounts for 15% of Ghana's installed power production capacity.
- A US$600mn plan to develop two satellite towns has been announced by emerging market investment firm, Renaissance Group, who have partnered with the traditional authorities of two of Ghana's fastest growing regions. King City, located in proximity to booming oil port Takoradi, and Appolonia, 30km from capital Accra, will each cover over 2,000 acres and include residential, retail and commercial units plus schools, healthcare facilities and other social infrastructure. The builds are scheduled to begin in 2013, with completion planned for 2023. Each area will provide housing for 80,000 people.
- The Ghana Highways Authority has announced that construction work on the 10km road between Techimantia and Akomadan has begun. The road aims to improve the local economy by facilitating the transportation of food produce to the region's major commercial centres. The project is due to be completed by December 8 2013.
We are sanguine on Ghana's growth prospects for the 2013-2021 period and forecast annual real GDP growth to average 6.5% per annum. The ramping up of domestic oil production will provide significant impetus to the economy, allowing the mitigation of fiscal and current account drags.
BMI Industry View
SWOT Analysis
Ghana Infrastructure Industry SWOT
Market Overview
West Africa Competitive Landscape
Table: Domicile And Number Of Contractors In West Africa, 2011
Building Materials
Africa
Cement Forecasts
Table: Ghana Cement Production And Consumption Data, 2010-2016
Table: Ghana Cement Production And Consumption Long Term Forecast, 2015-2021
Industry Forecast Scenario
Table: Ghana Construction And Infrastructure Industry Data, 2010-2016
Table: Ghana Construction And Infrastructure Long Term Forecast, 2015-2021
Construction And Infrastructure Forecast Scenario
Transport Infrastructure
Regional Transport Infrastructure Outlook And Overview
Major Projects Table – Transport
Table: West Africa Project Pipeline
Energy And Utilities Infrastructure
Regional Energy And Utilities Infrastructure Outlook And Overview
Major Projects Table – Energy And Utilities
Table: Major Projects – Energy And Utilities
Residential/Non-Residential Construction And Social Infrastructure
Regional Residential/Non Residential Building Outlook And Overview
Table: China Building A Regional Lead
Major Projects Table – Residential, Non-Residential And Social Infrastructure
Table: Major Projects – Residential/Non-Residential Construction And Social Infrastructure
Risk/Reward Ratings
Ghana’s Risk/Reward Ratings
Rewards
Risks
Sub-Saharan Africa Risk/Reward Ratings
Table: Sub-Saharan Africa Infrastructure Risk/Reward Ratings
Global Overview
BMI Methodology
Industry Forecasts
Construction Industry
Data Methodology
New Infrastructure Data Sub-sectors
Construction
Capital Investment
Construction Sector Employment
Infrastructure Risk/Reward Ratings
SWOT Analysis
Ghana Infrastructure Industry SWOT
Market Overview
West Africa Competitive Landscape
Table: Domicile And Number Of Contractors In West Africa, 2011
Building Materials
Africa
Cement Forecasts
Table: Ghana Cement Production And Consumption Data, 2010-2016
Table: Ghana Cement Production And Consumption Long Term Forecast, 2015-2021
Industry Forecast Scenario
Table: Ghana Construction And Infrastructure Industry Data, 2010-2016
Table: Ghana Construction And Infrastructure Long Term Forecast, 2015-2021
Construction And Infrastructure Forecast Scenario
Transport Infrastructure
Regional Transport Infrastructure Outlook And Overview
Major Projects Table – Transport
Table: West Africa Project Pipeline
Energy And Utilities Infrastructure
Regional Energy And Utilities Infrastructure Outlook And Overview
Major Projects Table – Energy And Utilities
Table: Major Projects – Energy And Utilities
Residential/Non-Residential Construction And Social Infrastructure
Regional Residential/Non Residential Building Outlook And Overview
Table: China Building A Regional Lead
Major Projects Table – Residential, Non-Residential And Social Infrastructure
Table: Major Projects – Residential/Non-Residential Construction And Social Infrastructure
Risk/Reward Ratings
Ghana’s Risk/Reward Ratings
Rewards
Risks
Sub-Saharan Africa Risk/Reward Ratings
Table: Sub-Saharan Africa Infrastructure Risk/Reward Ratings
Global Overview
BMI Methodology
Industry Forecasts
Construction Industry
Data Methodology
New Infrastructure Data Sub-sectors
Construction
Capital Investment
Construction Sector Employment
Infrastructure Risk/Reward Ratings
