Are you looking for investment opportunities in Ghana? Are you an investor or entrepreneur seeking to participate in the growing Ghanaian economy by establishing a business or access market opportunities for consulting, equipment supply, construction etc? The 2018 budget highlights 10 key projects and opportunities for investors to participate in Ghana.
The Government of Ghana presented the 2019 budget in November on the theme, “A Stronger Economy for Jobs and Prosperity”. The budget at a glance projects Government’s expectation of raising a total revenue of Ghs 58.9 billion while spending some GHs 73.4 billion. Overall real Gross Domestic Product (“GDP”) growth is targeted at 7.6% with end-period inflation at 8.0%.
Firmus Advisory has identified some investment opportunities in the budget through policy initiatives that focuses on building a more dynamic and stronger economy by accelerating economic growth, modernising agriculture, industrialising society and protecting the vulnerable to create jobs and prosperity for the Ghanaian people.
Key Investment Opportunities;
Rehabilitation and Construction of Roads
In 2019, government will undertake 11,100km, 25,000km and 6,500km of routine maintenance activities on trunk, feeder and urban road networks, respectively. In addition, periodic maintenance activities will be undertaken on 55km, 500km, 400km which includes spot improvement, re-gravelling, resealing, asphaltic overlaying, partial reconstruction, and bridge maintenance on trunk, feeder and urban roads, respectively. In addition, minor rehabilitation works on 5km of trunk roads, 450km of feeder roads and 60km will be undertaken on urban roads. It will also implement an electronic tolling of roads to improve revenue generation into the Road Fund.
Rehabilitation of the Tema Port
In order to decongest the Tema Port and to facilitate transit trade especially to landlocked countries, a Strategic Investor will be engaged in 2019 to partner Government to develop an Inland Port at Boankra. In addition, Government will engage a Strategic Investor to upgrade the facility for ship repairs and refitting, shipbuilding, aluminium and steel fabrication as well as metal and general engineering services.
Construction of Coastal Protection
In 2019, the Ministry will commence coastal protection works on Amanful Kumah, Dansoman Phase II, Komenda, Anomabo, Cape Coast, Mensah Guinea, Ningo Prampram, New Takoradi Phase III (Elmina), Apam, Kokrobite, Bortianor, Blekusu Phase II, Aboadze Shama Phase II, Maritime University, Nungua, Takoradi, Anyanui and Essipong.
Construction of small-scale dams and irrigation facilities
Designs for rehabilitation of Sankana (UWR), Tanoso (BAR), Kpando Torkor, (VR) Amate (ER), Libga and Golinga (NR) as well as 12 small dams under the One Village One Dam programme are completed and construction will start in 2019. In addition, designs for 180 dugouts are also completed for construction under the remit of the Ministry of Special Development Initiatives. To increase access to water for crop and animal watering, a 100ha land will be put under irrigation through surface water abstraction with solar water pumps while 200 boreholes mounted with solar water pumps will be drilled throughout the country to harness groundwater.
Rehabilitation and Construction of hatcheries to support aquaculture
In 2019, two public hatcheries at Sankana and Dormaa Ahenkro will be rehabilitated, and three additional ones constructed at Asankragua, Sefwi Wiawso and Nkawie to support aquaculture operators with fingerlings to increase fish production. The Ministry will also partner the private sector to build a National Aquaculture Centre at Shama for learning fish farming.
Establishment of storage facilities for agricultural produce
In 2019, Government will construct additional 30 new warehouses (1,000mt capacity each) equipped with seed cleaners, dryers and weighing scales to minimize losses along the supply chain. This is under government’s warehouse construction initiative, and opportunities exist for investors and businesses to provide various services under this scheme.
Government will also establish two facilities worth US$216 million for the importation of farm machinery and equipment suitable for smallholders in 2019. The machinery and equipment for land preparation, planting, harvesting and primary processing will be used to revive the 168 existing Agricultural Mechanization Services Centres (AMSECs).
In 2019, the Ministry will roll out the BSTEM programme in 7,000 basic schools across the country; construct 10 STEM Centres; initiate the development of knowledge cloud to make educational materials content accessible to all; and provide multimedia laboratories as well as internet connectivity to cover many more schools.
Establishment of training schools for skills enhancement
In 2019, a set of 10,000 entrepreneurs will be trained and financial support provided to about 2,000 beneficiaries under the National Entrepreneurship and Innovation Plan (NEIP).
In 2019, the Ministry in collaboration with the private sector will establish 25,000ha of forest plantation, maintain an estimated 40,288ha of established plantations and restore 2,500ha of degraded landscape including mining sites and illegal farms in forestry reserves. In addition, 13.3million seedlings will be procured and supplied. These are expected to create 32,250 jobs.
Industrial Parks and Special Economic Zones
Under the “One Region, One Park” initiative, the Ministry of Trade, the Ghana Free Zones Authority and Ghana Investment Promotion Centre are supporting private investors in the establishment of Industrial Park infrastructure. This includes facilitating access to land, providing off site infrastructural facilities, and promoting the Parks to potential anchor tenants and industries from around the world. In addition to the existing industrial parks, Government will, in 2019, seek Public Private Partnership investment to develop selected Industrial Park projects. This includes the proposed new Greater Kumasi Industrial City and Special Economic Zone, which covers a landmass of 5,000 acres and will incorporate the Inland Port at Boankra.
Provision of health facilities
Construction of the following new infrastructural projects will commence in 2019: one district hospital and five polyclinics in Western region at Akontombra, Bogoso, Wassa Dunkwa, Mpoho, Elubo and Nsuaem; and expansion and equipping of facilities at Aburi, Kyebi, Atibie and Mampong. This is an opportunity for investors to partner government to construct above listed health facilities.
How to access these investment opportunities
A lot more information is required if you are to take advantage of any of these investment opportunities. The budget by itself offers no information on the timelines for execution of these projects and in some instances, the project owner or responsible MDA is not clearly defined.
Going forward, we recommend the following guidelines;
- Investors should first identify the project owner or responsible Ministry, Department or Agency of Government that will be undertaking the project.
- Once the project owner has been established, it is important for you to also seek clarity on the funding for the project; whether it is a Government of Ghana or external funded project (Common Fund, GetFund, IGF, World Bank, Donor Funded etc)
- For planning purposes, investors must inquire on the timelines for publication of tender advert and seek additional information on the project location, specifications and type of tender (national or international competitive bidding) among others.
- Once clarity has been obtained on the above factors, you can commence planning, market research or any other preparatory activity as you wait for the tender process to commence.
- Avoid unofficial dealings with people and any form of upfront payment in lieu of the contract or project.
The 2019 Budget Statement provides great investment opportunities and hope for the future for both investors and Ghanaians through the construction of roads, small-scale dams and warehouses, provision of health care facilities, training and skills development, distribution of agriculture mechanization equipment among others. We look forward to an exciting economic year.
We look forward to an exciting year!