GHANA GENERAL ECONOMIC DATA Population - 2005 22,1 million Area 239 000 Km2 GDP - 2005 USD 10.7 billion GDP per inhabitant - 2005 USD 450 Growth rate - 2005 5.8% Inflation rate 2005 15.1% Trade balance (% of GDP) - 2005-22.2% Budget balance (% of GDP) - 2005-1.3% Investment (% of GDP) - 2005 29.5% Domestic savings (% of GDP) - 2005 6.9% Total debt (% of GDP) - 2005* 71.7% COFACE Country risk rating C * External debt towards public creditors Sources : World Bank, World Development Indicators database, April 2006 BAfD/OCDE (2005), Perspectives économiques en Afrique FMI, Perspectives Economiques Régionales, May 2006 Missions Economiques, MINEFI - DGPTE CIA, The World Factbook - COFACE Rating ECONOMY STRUCTURE Ghana has undergone considerable growth for the last several years (with a growth rate in excess of 5% since 2000) as a result of political stability and reforms initiated in the 90 s. Agriculture, which represents up to 50% of GDP, remains the prime engine of the economy, particularly owing to the cocoa production. This sector has benefited from a significant support granted by the Government for the former s development and modernisation. The industrial sector has been stimulated by the processing industry (cocoa and aluminum), mining (gold, bauxite), manufacturing and refining. In the services industry, Bernard Krief Consultants Page 1/6
tourism has also become an expanding sector. As never before, since 2004 private investments have substantially increased. However, the economic development is hindered by insufficient infrastructures, especially for transport, and the economy remains dependent on the fluctuations of raw material prices. The donor community is also very active in supporting poverty reduction in Ghana. The European Union has programmed an aid of EUR 280 million over the period 2002-2007 (9 th EDF) of which EUR 80 million are earmarked for infrastructure development. In 2003 the World Bank allocated loan of MUSD 725 of which over MUSD 200 is intended for infrastructures (railways, energy and water). Ghana also benefits from the support of the AfDB and other international and bilateral donors (especially German and Danish). Sectorial distribution: Primary industry (39% of GDP) : cocoa (4,7%), wood, palm oil, manioc, sorghum, millet, breeding Manufacturing industry (25% of GDP) : mines (5,7% gold, bauxite), textile, agro-food, hydrocarbon, processing industry (plastification, aluminium), and building materials Services industry (37% of GDP) : trade, transport, tourism, financial services CONSTRUCTION & CIVIL ENGINEERING SECTOR The sector is fostered by the policy of major projects initiated since 1999. The transport sector has become a priority for the government who intends to open up certain regions and turn Ghana into the main transit corridor for the neighboring landlocked countries (Mali, Burkina Faso), which as already the case owing to the Ivorian conflict. Thus, several projects have been or will be launched in relation to road, water or port infrastructures. International and mainly European groups are dealing with the infrastructure projects. On the other hand, in the housing and building fields competition is mostly local. PLAYERS The main international groups established in Ghana in the sector are: Taylor Woodrow (Taysec subsidiary - UK) the leader of the market with a turnover exceeding $50 million, Bilfinger Berger (Germany), Sogea-Satom (Vinci - Fr), Sade (Fr) and China International Construction Co. (Ch). These companies are actively present in the major infrastructure projects market. Ghana also features several local companies which are very active in this field, among which Interplast and De Simone. There are many other contractors in the sector. Several intermediary organisations also represent this sector, among which the most important are the Association of Construction and Civil Engineering Companies of Ghana (ABCCG), the Association of Road Construction Companies (ASROC) and the Ghanaian Institute of Engineers (GHIE). INFRASTRUCTURES Roads: the Ghanaian road network comprises approximately 42.500 km of which only 3.267 km were asphalt coated in 2004. Several projects are under consideration or scheduled, such as the Accra-Kumasi (233 km), Accra-Yamoransa (134km), Accra-Alheo (82 km) highway construction projects. Some rehabilitation projects are also programmed, representing 235 km of which 50% will be financed by international donors. Railways: the railway network covers 947 km, mainly servicing the cocoa regions, the mining cities and the port cities, around the triangle Accra - Tema-Kumasi, Sekondi - Takoradi. The network is somewhat obsolete and is being rehabilitated and extended; the Accra-Tema connection is under completion, the Takoradi-Awaso connection will begin and the studies will be launched for the Tema-Akosombo axis. The Ghana Railway Corporation still holds the monopoly of the network operation and the Government is currently trying to privatise the whole railway system. Bernard Krief Consultants Page 2/6
Airports : there are 11 airports : the Kotoka international airport in Accra which was subject to several rehabilitation programs, 2 secondary airports (Sekondi-Takoradi et Tamale) and 8 aerodromes. The air transport is regulated by the Ghana Civil Aviation Authority (GCAA). Harbours and Waterways: the two main seaports of Takoradi and Tema are tightly connected to the road and railway transport system. As a result of the traffic explosion linked, inter alia, to the Ivorian crisis, Ghana has become a regional power in sea transport. Several modernisation and extension projects have been implemented. The rehabilitation of the Boanka river port is ongoing. Ghana has a fluvial system of 1,293 km mostly around the Volta lake affluents. Water: 79% of the population has access to drinking water (93% in the urban area and 68% in the rural area). The Ghana Water Company Limited, managed by the Aqua Vitens Rand Ltd (Netherlands/South Africa) consortium since 2005, is in charge of the water production and distribution in the urban area and the Community Water and Sanitation Agency in the rural area. The rehabilitation of several water distribution systems is in progress in 6 cities (Koforidua, Asamankese, Nsawam, Nkawkaw, Akim Swedru and Anum Boso). Moreover, 7 urban centres will be subject to the rehabilitation of their water system (Accra, Ashanti, Central, Northern, Upper East and West Volta). Numerous projects are also launched in the rural sector with the support of bilateral donors (AFD, DIDA, DFID, KFW, Jica (Japan) and international donors (EU, WB, UNDP ) Energy : Ghana has an installed generating capacity for the production of electricity estimated at 1903 MW of which 63% of hydroelectric origin and 27% of thermal origin. The Volta River Authority is in charge of the production and distribution of the industrial and domestic electricity for most of the country. However, given the increase by 15% per year, Ghana imports electricity from Côte d Ivoire and has scheduled several projects to be launched: o WAPP Project for the creation of a regional market and the implementation of infrastructures for the electric inter- State transmission network. o WAGP Project: ongoing construction of a gas pipeline with a total length of 800 km which will connect Ghana to Nigeria through Togo and Benin and will boost the electric power stations. o The construction of new thermal (Tema - 350 MW) and hydro-electric power stations (Bui - 400 MW). HOUSING AND FUNCTIONAL BUILDINGS Housing: recognising that the access to housing is too expensive for many inhabitants, the Government has launched a low-cost program for lands and building materials as well as for the development of long-term financing. In this respect, a National Housing Authority will be created in order to implement the National Housing Policy. The dwelling shortage is estimated between 350,000 and 400,000 units in Ghana. On the average, only 25,000 dwellings are built each year, which is insufficient to meet the deficit. The key players in the housing funding sector are: o the Home Purchase Mortgage (HFC) : a mortgage funding service conceived for facilitating the purchase of dwellings o the Bank for Housing and Construction : responsible for the funding of new dwellings to be constructed. Functional buildings: besides the educational and sanitary public buildings, the private sector also offers many opportunities for the construction of industrial and commercial buildings: hotel complexes in the expanding tourism sector, industrial buildings, especially for agro-industry and the processing industry (wood, building materials, non-ferrous metals) and in the tertiary sector (trade, services ). Bernard Krief Consultants Page 3/6
BUILDING MATERIALS Cement: Ghacem (Scancem, Heidelberg Cement Group) is the sole cement producer in Ghana. Cement consumption has increased from 1 MT in 1992 to 2.2 MT in 2005. The high cost of cement entails high construction costs. Ghacem has recently invested in a lime ore in order to cut the import related costs. Other building materials: given the high construction costs due to the import of building materials, the government has launched a policy to foster the manufacture of local building materials. KEY PLAYERS Institutions Ministry of Ports, Harbours & Railways PO PMB, Accra - Tel : +233 21 68 17 80 - Fax : +233 21 68 17 81 - Email : poharail@yahoo.com Web : www.mphrgh.org Ministry of Water Resources, Works & Housing PO Box M43, Accra - Tel : +233 21 68 55 12 - Fax : +233 21 66 76 89 - Web : mwh@ighmail.com Ministry of Transport PO Box M57 Accra - Tel : +233 21 67 26 76 - Fax : +233 21 67 36 76 - Email : info@mrt.gov.gh Web : www.mrt.gov.gh Contractors ABP Consult Ltd. 1 Milne Close, Airport Residential Area, Accra - Tel : +233 21 77 30 78 - Fax : +233 21 77 30 94 Email : fkakwaboah@abpconsult.com - Web : www.abpconsult.com Bilfinger Berger Ghana Ltd North Industrial Area, P.O. Box KA-16404, KIA, Accra - Tel : +233 21 22 94 35 - Fax : +233 21 22 13 02 China Int. Construction Co. 45/1 West End Ridge, Cape Coast - Tel : +233 42 33 814 De Simone South Ring Road Industrial Area, GPO. Box 2141, Accra, - Tel : +233 21 227788/21 232207 Fax : (+233) 21 237039 Email : info@desimoneltd.com - Web : www.desimoneltd.com Home Development Company Opp. the Mobil Filling Station, Sakaman-Mallam Rd. (Chabar), Accra - Tel : +233 21 23 24 34 Fax : +233 21 32 28 07 Email : info@ghanahomecompany.com - Web : www.ghanahomecompany.com Interplast Limited South Ind. Area, - Tel : +233 21 22 84 22 / 22 92 97 / 23 33 99 - Fax : +23321 22 17 03 Email : pipes@africaonline.com.gh - Web : www.interplastghana.com Ital Prestress & Construction Products Off the Accra-Tema Motorway, UPO PMB LG 21 Legon, Accra - Tel +233 21 70 12 101 Fax : +233 21 70 12 103 Email : info@trasaccovalley.com Web : www.trasaccovalley.com Pentabuild #65, 3rd floor Caledonian House, Accra - Tel : +233 21 25 54 78 - Fax : +233 21 24 03 95 Email : info@pentabuild.com - Web : www.pentabuild.com P.W. Ghana Limited 10 Abidjan Avenue, East Legon, Accra Tel : +233 21 51 811 26 Fax : +233 21 51 81 17 Email : pwg@pw-limited.com Sade 10 Sir Arku Korsah Road, Roman Ridge, PO Box 30215, Accra, Ghana - Tel : +233 21 77 73 03 Bernard Krief Consultants Page 4/6
Satom Sogea PO. Box 754, Accra - Tel : +233 77 56 62 - Fax : +233 76 35 44 Taysec Construction Ltd 2 Kwashie Street, North Industrial Area, P O Box Os 1010, Osu, Accra Tel : +233 21 22 85 44 Fax : +233 21 22 51 65 Email : taysec@uk.taylorwoodrow.com The Arab Contractors O.A.O 18 Orphan crescent Labone, Accra Tel : +233 21 76 36 94 Fax : +233 21 76 57 63 Email : ghana@arabcont.com Intermediary Organisations ABCCG - Association of Building & Civil Contractors of Ghana Odorkor-Mallam Road, PO Box 14293 GPO, Accra - Tel : +233 21 30 07 22 - Fax : +233 21 30 07 22 Email : abccghana2002@yahoo.com ASROC - Association of Road Contractors Po Box C 2823 Cantonments, Accra - Tel : +233 21 30 42 18 GHIE - Ghana Institute of Engineers 13 Continental Road, Roman Ridge, Accra - Tel : +233 21 76 08 67/ 868 - Fax : +233 21 77 20 05 Email : secretariat@ghie.org - Web : www.ghie.org GIPC - Ghana Investment Promotion Centre East Legon, PO. Box :7143, Accra - Tel : +233 21 70 12 340 - Fax : +233 24 45 19 785 Water / Energy / Transport Ghana Civil Aviation Authority(GCAA) PMB, Kotoka International Airport, Accra - Tel : +233 21 77 61 71 - Fax : +233 21 77 32 93 Email : info@gcaagh.com Ghana Water Company Limited PO Box 194 Accra - Tel : +233 21 66 67 81 - Fax : +233 21 66 35 52 Volta River Authority PO Box M. 77, Accra - Tel : +223 21 66 49 41/22 11 24 - Fax : 223 21 66 26 10 Email : paffairs@vra.com ; orgsrv@accra.vra.com - Web : www.vra.com Ghana Railway Corporation PO Box 251, Takoradi - Tel : +233 31 21 81 - Fax : +233 31 49 66 Banks BHC - Bank for Housing and Construction Okofo House, 24, Kwame Nkrumah Avenue, Accra - Tel : +233 21 22 00 33 - Fax : +233 21 22 96 31 Email : bhc@ghana.com Agricultural Development Bank Opp. Volvo House, Ring Road Central, P.O. Box 4191, Accra North Tel : +233 21 22 84 53 Bank of Credit & Commerce 4 Graphic Rd., P.O. Box 11011, Accra North - Tel : +233 21 22 00 33 Barclays Bank of Ghana Ltd. High St. PO. Box 69, Accra - Tel : +233 21 66 45 06 CAL Merchant Bank Ghana Limited Independence Ave. PO. Box 9592, Accra - Tel : +233 21 22 10 56 Meridian Biao Bank Caledonian Hse. Kojo Thompson Rd., PO. Box 1862, Accra - Tel : +233 21 22 98 47 Metropolitan & Allied Bank Valco Trust House, Castle Rd. PO. Box C1778, Accra - Tel : +233 21 23 27 70/3 Bernard Krief Consultants Page 5/6
National Investment Bank Liberty Ave., PO. Box, Accra. - Tel : +233 21 66 93 01/5 Standard Chartered Bank High Street, P.O. Box 768, Accra - Tel : +233 21 66 45 90/9 Bernard Krief Consultants Page 6/6