Ghana’s construction industry value of $9 billion is ranked 7th in Sub-Sahara Africa, Fitch Solutions, research arm of ratings agency, Fitch, has said.
The country’s risk profile also places it as the 6th most attractive market in the region.
According to Fitch Solutions, research arm of ratings agency, Fitch, the country’s construction industry which grew by 14.2% in the first quarter of this year is reasonably attractive, compared to many of its peers in the region.
The report said contractors are exposed to less political risk than in many other markets on the African continent.
“In addition, we note that the generally lower complexity and shorter time frame of road construction projects will reduce their exposure to longer-term political and economic risks.”
Fitch Solutions further said construction firms in the road construction sector benefit from a comparatively attractive labour market, characterised by a large, expanding workforce, strong female participation, and low labour costs.
The country’s competitive wage costs, it also said are supported by comparatively high levels of productivity and moderate requirements for labour tax and social contributions.
“Despite the presence of strong labour unions, labour costs remain highly attractive on a regional and global scale, particularly for foreign investors”, it explained.
“Nonetheless, investors face risks associated with the country's high severance pay requirements and rigid wage determination structures, which limit firms' flexibility in adjusting their labour requirements in response to economic shocks”, it added.
Africa’s most populous nation, Nigeria is ranked 1st in terms of the construction firm industry value on the continent.
Namibia and South Africa are however the most attractive construction markets in the region, placing 1st and 2nd respectively.
Country | Construction Industry Value (US$) | Industry Risk Score (Position) |
Ghana | 9bn | 6th |
South Africa | 24bn | 2nd |
Nigeria | 55bn | 9th |
Kenya | 10bn | 5th |
Ethiopia | 26bn | 13th |
Ivory Coast | 5bn | 11th |
Uganda | 5bn | 11th |
Latest Stories
-
‘Dumsor’ will be over by end of May – Former NPP MP assures
11 mins -
Power crisis is not about money – NPP Manifesto Committe chair
17 mins -
Education Minister urges graduates to embrace opportunities
26 mins -
UN rights chief ‘horrified’ by mass grave reports at Gaza hospitals
42 mins -
We need more resources to deal with flooding – NADMO
48 mins -
We’ll not contest in Ejisu by-election – CPP tells EC
1 hour -
Thomas Partey makes first start in 2024 as Arsenal hit Chelsea for 5
2 hours -
Fatawu Issahaku scores hattrick as Leicester thrash Southampton
3 hours -
I was never interested in fame – Kofi Sarpong
3 hours -
CPP files injunction to halt Ejisu by-election
4 hours -
GRA clarifies status of resident individuals for tax purposes
4 hours -
Minority criticises Energy Minister for lack of leadership amid ‘dumsor’
4 hours -
Ghana’s cocoa farmers lament low earnings amid high prices
5 hours -
Rainstorm caused power outages in Greater Accra Region – ECG
5 hours -
KODA’s family requests for privacy ‘to mourn and heal’
5 hours