infrastructure

Infrastructure

Ghana’s capacity to fully absorb and benefit from increased investments would depend to a large extent on the availability, quality and efficiency of its infrastructural base. Infrastructure significantly permeates various sub-sectors including ports, roads, rail, aviation, electricity, water supply, transportation and telecommunications. 

The soft components of Ghana’s infrastructure base have witnessed improving performance over the past two decades, thereby helping the country to maintain satisfactory growth.  The country’s rising trade has been reflected in growing cargo throughput, which increased from 15.99 million (2014) to about 23.13 million (2018).  From 17.71 million in 2010, the mobile telephony subscriber base expanded to 40.9 million by December 2018.   Data and mobile penetration rates stand at 88.84% and 138.8% respectively (December, 2018).

The Transportation segment, made up mainly of road transport, maritime and water transport, aviation and rail, is also witnessing significant developments. Aside the Kotoka International Airport, located in the Greater Accra Region, there are five domestic airports (located in Kumasi, Sunyani, Tamale, Ho and Takoradi) and two airstrips (located in Wa and Kpong).  The expansion of the Kumasi and Tamale airports are underway and the projects are expected to be 75% and 65% complete respectively by the close of 2019. All these come at the back of increasing throughput, with air passenger traffic rising from 1.2 million in 2008 to approximately 2 million by the close of 2018. 

The bulk of inland transport presently happens on the roads with over 50% of the national road network assessed to be in good condition. The rail industry in Ghana has a total track length of 1300km and operates a route length of 947km. Whilst the rehabilitation of existing rail lines and the construction of new ones are ongoing (eg. Kojokrom-Tarkwa, Kojokrom-Manso, Achimota-Nsawam, etc), Government is actively seeking private sector participation in the development and rehabilitation of the railway infrastructure.

Ghana, seeking to serve as a maritime hub for West Africa, has two main seaports - Tema and Takoradi.  Whilst Tema’s operations are skewed towards imports, Takoradi is skewed towards exports. A new inland port, being constructed at Boankra near Kumasi in the heart of the country, is expected to be an important staging post for goods in transit to neighboring landlocked countries.

On energy, Ghana has total installed electricity generation capacity of 4,420 Mega Watts (MW) with total dependable capacity of 3,877 MW (March, 2019). The sub-sector is mainly run a mix of state owned agencies and various Independent Power Producers. Government’s medium term target is to attain generation capacity of 5,000 MW. 

The infrastructural base in the ICT sub-sector encapsulates undersea cable connectivity, Private Licensed VSAT Systems, Fixed Wired Line Networks, Wireless Mobile Operators, Public telephones systems, Internet Backbone Connectivity, Broadcasting Systems, etc. The National Fibre Communications Backbone Infrastructure Network aimed at providing open access broadband connectivity is also being steadily developed. 

Estimates suggest a backlog of two million housing units across the country and an annual delivery rate of 20,000 units is required to meet demand in the next 10 years. Government has created an enabling environment to provide affordable, quality and adequate housing and is also encouraging Public-Private Partnerships (PPPs) in housing development and construction of ancillary facilities. 

There are considerable investment opportunities in the sector. Some of the opportunities in the various segments are highlighted below:

Roads and Transport

  • Major investment opportunities for the roads and railways segments in the areas of construction, maintenance and services.
  • Rail upgrades and passenger rail transport on chosen corridors
  • Lake transportation systems
  • Air transport operators for domestic and sub-regional services
  • Upgrading of existing trunk roads