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 her 2018 budget in November titled, ‘Putting Ghana back work’. The budget indicates the direction of the government’s plans, initiatives and programme for 2018. In summary, the government expects to raise a total revenue of Ghs 51 billion while spending some GHs 62 billion. The government is targeting an end of year GDP growth rate of 6.2% for 2018 and end of year inflation 9.8%.
The budget also highlighted a number of investment opportunities for the private sector. Firmus Advisory has identified some investment opportunities in the budget through policy initiatives that focus on accelerating investments in Agriculture, Infrastructure Development and Industrialization in Ghana.
This article enumerates key investment opportunities for the private sector as stated in Ghana’s 2018 Budget Statement.
Key investment opportunities;
investment opportunities in Ghana
1. Road and Bridge Construction
Over a short to medium term period, the Government of Ghana will construct roads and bridges as part of the economic transformation programme in order to connect key food basket zones in the country. In 2018, Government is expected to construct 99 steel bridges and several other roads in the middle to the northern belt of Ghana.
2. Investing in the Railway sector
Government wishes to revamp the railway network mostly in the southern part of the country; Western, Ashanti, Eastern and Greater Accra regions. Works for the development of the Western Line (Kojokrom-Kumasi with branch lines to Dunkwa-Awaso-Nyinahin) as well as works on the 85km railway line from the Tema Port to link the Volta Lake via the Akosombo Port will continue in 2018. Feasibility studies for the development of the Eastern Railway Line and the Boankra Inland Port on a public-private partnership basis have been completed and Government is in the process of procuring strategic investor(s) for the project.
3. Establishment of training schools for skills enhancement
In a bid to increase graduate employment, improve skills and employability, public service delivery and revenue mobilization, Government in 2018 will train unemployed graduates in the National Builders Corps Program. The program will equip and deploy graduates around the country to be engaged in the “Teach Ghana”, “Clean Ghana”, “Feed Ghana” and “Revenue Ghana” programs.
This is an opportunity for recruitment and training agencies to partner government to set up training schools. In the long term, this initiative is expected to decrease the graduate unemployment rate and improve public service delivery in health, education, agriculture, sanitation and drive revenue mobilization and collection.
4. Procurement of Meteorological equipment
In 2018, the Meteorological Services Programme by the government will facilitate the acquisition of radar and other equipment to improve weather reporting. The objective of this programme is to improve meteorological services to meet International Civil Aviation Organization (ICAO) and World Meteorological Organization (WMO) standards. This is an opportunity for investors to partner government to supply equipment for weather narrations.
5. Public-Private Partnership for the supply of Agriculture equipment
Government through public-private partnership, will distribute tractors and matching implements, power tillers, and walking tractors, tractor mounted rippers, tractor-drawn rear blade, tractor mounted slashers, boom and orchard sprayers, motorised sprayers, mechanical and pneumatic planters, cereal harvesters, multi-crop threshers, irrigation kits (engine and solar powered sprinklers sets), and greenhouse technology for horticulture production.
6. Construction of small-scale Dams, Irrigation facilities, and boreholes
To facilitate the provision of community-owned and managed small-scale irrigation facilities across the country, especially in northern Ghana, Government has identified 192 small dams and dugouts in 64 districts for development under the ‘One-Village-One Dam’ initiative. The government will facilitate the construction of 50 small dams and dugout as well as complete Phase I of the Tamne, Kornorkle and Uasi Irrigation schemes, making available additional 147ha of irrigable land for crop production. In addition, 30 pumping schemes and 100 boreholes will be developed and feasibility study conducted for water transmission lines in Northern Ghana.
7.Establishment of storage facilities for agricultural produce
To provide warehouses for storage of fertilizer, improved seed, and strategic output stocks, Government will rehabilitate at least 140 existing warehouses and construct 18 new ones and equip each with seed cleaners, dryers and weighing scales. This is under the government’s warehouse construction initiative, and opportunities exist for investors and businesses to provide various services under this scheme.
8. Provision of Solar energy installation services for Ministries and Government Agencies
In line with Government’s goal of increasing the penetration of renewable energy in the energy generation mix and the promotion of distributed solar power for government and public buildings, the Ministry of Energy will embark on Ministries, Departments and Agencies (MDAs) Solar Rooftop Programme dubbed “Government Goes Solar” to reduce Government’s expenditure on utilities.
9. Construction of 10,000 housing units under the affordable housing program
In order to reduce the housing deficit, the Government will continue to work on the provision of safe and affordable housing. In the coming year, the government will construct about 10,000 housing units of various types in all the regional capitals of the country. This will be an investment opportunity for real estate companies to partner Government to enhance the affordable housing agenda.
10. ICT Park
To accelerate the growth of the nation’s economy and competitiveness, Government will construct an ICT Technology Park to create an entrepreneurial and innovative culture. In 2018, Government will undertake the construction of the ICT Park to promote Research and Development and entrepreneurship among the youth. The Park will provide a multi-tenant facility and infrastructure to meet the needs of interested tenants.
TECHNOLOGIES AND INNOVATIONS; THE RISE OF DIGITAL GHANA
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.
2018 promises to be exciting for the private sector and investors in general, provided Government can fund these laudable projects. There are various investment opportunities, according to the 2018 Budget Statement in the areas of project consulting, road and building construction, railway development, training and skills development, solar renewable, ICT, agricultural mechanization systems and equipment supply among others.
We look forward to an exciting year!