Construction has been central to the country’s development over the past decade across several sectors of the economy, and notably, from 2013-21, the sector contributed an average of 7.2% to the country’s GDP. Although infrastructure dominates the construction landscape in Ghana, other segments are exhibiting strong growth potential, such as construction in the commercial, industrial, residential and energy spaces.

As a result of the government’s focus on infrastructure development, domestic and foreign investors have emerged, resulting in the establishment of multiple construction companies. The government believes that enhancing the country’s port and transport infrastructure is crucial to promoting trade. Ultimately, it is of vital importance that Ghana can reap the economic benefits of increased regional trade heralded by the African Continental Free Trade Area (AfCFTA) Agreement (see Transport & Infrastructure chapter). Ghana also has a sizeable untapped market for the construction of affordable homes and commercial buildings, and infrastructure development, which presents a substantial opportunity for investors and companies in the sector.

Structure & Oversight

Several government ministries and bodies are involved in Ghana’s construction sector. The Ministry of Works and Housing (MoWH) is responsible for formulating, monitoring and evaluating the implementation of policies, plans and programmes for the sustainable management of public landed property, drainage and coastal protection works, operational hydrology and affordable housing.

The Ministry of Sanitation and Water Resources (MSWR) is also involved in the sector, where it plays a significant role in national, regional and international initiatives to provide sanitation and water sectors with necessary infrastructure. The Ministry of Roads and Highways (MRH) formulates policies; coordinates and oversees the sector; and provides monitoring and evaluation in road infrastructure financing, development and maintenance, as well as engaging itself in training and capacity building. Other ministries involved in the sector include the Ministry of Energy, the Ministry of Education, the Ministry of Health (MoH) and the Ministry of Special Development Initiatives, the latter of which is tasked with overseeing infrastructure upgrades at the constituency level.

The government collaborates with technical institutions to enforce high construction standards through the Ghana Building Code 2018, created by the Ghana Standards Authority in partnership with other agencies. The establishment of the Environmental Protection Agency (EPA) with the EPA Act, 1994 (Act 490) grants the agency the power to enforce environmental regulations during construction.

In April 2020 in response to the shortage of health care facilities exposed by the Covid-19 pandemic, the MoH secured a $100m start-up fund through the Ghana Investment Infrastructure Fund and unveiled Agenda 111, which aims to construct 111 hospitals. As of October 2023, the average completion rate for 89 of the hospital projects was 52%, with a target completion date set for end-2024, according to Kojo Oppong Nkrumah, the former minister of information.

Performance & Size

The sector has an estimated market size of between $9bn and $13.2bn, according to industry intelligence provider ConstructAfrica’s “Ghana Construction Market Report”, published in May 2023. With a compound annual growth rate (CAGR) of 13.8% from 2013-21, construction revenue increased from GHS10.4bn ($944m) in 2013 to GHS29.3bn ($2.7bn) in 2021. The sector’s growth can be attributed in part to the ongoing expansion of airports and seaports, modernisation of the country’s railway system and interventions to revitalise water transport on Lake Volta, which aims to provide a multi-modal corridor to serve landlocked countries in the West African region and boost export efficiencies.

According to research firm Fitch Solutions, Ghana’s construction sector had been anticipated to increase by 4.1% in 2022, down from 5.7% growth in 2021. However, the Ghana Statistical Service reported that the sector witnessed a year-on-year (y-o-y) contraction of 11.7% in the second quarter of 2023. Ghana’s GDP from construction rose from GHS3bn ($272.4m) in the final quarter of 2022 to GHS3.2bn ($290.6m) in the first quarter of 2023, before dipping to GHS3.1bn ($281.5m) the following quarter. Notwithstanding market fluctuations, average annual growth for the sector is forecast at over 5% between 2024 and 2027, aided by public sector investment in transport infrastructure to enhance regional connectivity.

Ghana has around 2500 active building and construction contractors and employs approximately 420,000 people, according to the US Department of Commerce’s International Trade Administration. Additionally, the MoWH reported that Ghana had 1170 architects as of end-2021. This represents an increase of 2.8% compared to the 1137 architects recorded at end-2020, in trades ranging from domestic micro-businesses and independent contractors to multinational civil engineering and construction companies.

The One District, One Factory (1D1F) government programme continued to make significant progress in 2022 (see Industry chapter). According to Kobina Tahir Hammond, the minister of trade and industry, there were 296 1D1F projects in various stages as of September 2023, with 126 operational, 143 under construction and 27 projects in the pipeline, which showcases the government’s commitment to developing the construction sector.

The sector also faces headwinds, including the high costs of building materials, inadequate funds and the need for a skilled workforce. These can be addressed by mobilising long-term credit to the sector and establishing training centres and construction material factories in the country. Establishing rural-urban connectivity also stands to boost the sector, and with transport projects in the pipeline, the government is on track to address issues surrounding the lack of connectivity as it continues to attract foreign direct investment (FDI).

Building Materials

In 2023 housing demand among the working and middle classes and the pace of activity in Ghana’s real estate market were the main drivers of activity in the building materials subsector. Additionally, rising disposable income for consumers, high population density, increased government infrastructure development programmes and partnerships with foreign investors helped drive demand.

The building materials subsector, excluding cement, was valued at approximately $3.8bn at end-2021, according to locally owned GCB Bank’s “Sector Industry Analysis: 2022 Building Materials Report”. Ceramics and roofing sheets contributed $1.3bn, or about one-third of the total. The ceramics subsector is dominated by tiles, and accounts for around 70% of market share, and sanitary wares, the remainder.

GCB Bank forecast that around $800m is spent annually on domestic building materials, such as cement, iron rods, wood and roofing sheets, with $280m budgeted on imported raw materials for real estate development each year. In 2021 imports of luxury brand building materials totalled $150m, while imports of mediumand low-priced brands equalled $300m.


Activity in the construction sector, measured by cement sales volume, decreased by 20% in September 2022 to 255,046 tonnes from 318,656 tonnes a year earlier, according to the Bank of Ghana’s November 2022 “Monetary Policy Report”. Total cement sales decreased by 9.1% in September 2022 when compared to the previous month’s total of 280,708 tonnes, while cement sales for the first three quarters of 2022 decreased by 15.6% to 2.6m tonnes from 3.1m tonnes during the same period in 2021. Ghana imported $190m worth of cement and exported $6.4m in 2021, according to the Observatory of Economic Complexity.

The slowdown in building activities and the increase in cement prices starting in 2020 triggered a fall in total cement sales. By November 2022, cement prices of 50-kg bags had increased to approximately GHS90 ($8.17) from GHS50 ($4.54) from only a year earlier. Cement sales in November 2022 totalled 266,695 tonnes, a 21.5% decline from the 339,879 tonnes sold during the same month in 2021.

Real estate developers are required to pay about 40% in duty, value added tax and other taxes, along with levies on building materials, upon the import of cement under the present tax structure. Cement production accounts for 3% of Ghana’s total manufacturing industry. Research and consulting firm ConsTrack360 forecast CAGR of 3.6% for the cement subsector over the 2023-27 period, with cement output also forecast to increase from $1.6bn in 2022 to $2bn by 2027.

The government has been promoting the building materials subsector by encouraging the production and use of local building materials, as it aims to both boost domestic manufacturing, and in turn, reduce the country’s reliance on imported building materials. This strategy is expected to help private developers save on costs and increase job opportunities in the country.

Major Projects

The infrastructure construction industry in Ghana is experiencing substantial growth as a result of government initiatives, global partnerships and private investment. Transport, water and sanitation, and energy are key focus areas for the government. The country has made considerable investment in the modernisation and expansion of its road infrastructure, as demonstrated by the Eastern Corridor Road project and the Accra-Tema motorway expansion, which links Ghana’s key cities and regions.

The Eastern Corridor is the 695.6-km National Highway 2, or N2, that runs from Tema Roundabout to Kulungugu, near the north-eastern border with Burkina Faso. As of the end of 2022 key improvements had been made to the Eastern Corridor Road, with 366 km, or 74% of the total stretch, said to be in an improved condition. This project is scheduled for completion at the end of 2024.

By improving its rail infrastructure, Ghana aims to enhance connections throughout the region. In August 2022 South African-based Thelo DB consortium signed a $3.2bn agreement with the government to develop and operate the Western Railway line to facilitate efficient freight haulage. Ghana’s master plan for modernising the railway network also includes the $2.2bn Eastern Railway line. The build-operate-transfer project involves transforming the existing 1067-mm gauge rail corridor into a double-track electrified standard gauge rail line. The concession will last 30 years, which includes three years for its construction and 27 years for operation.

Ghana is also boosting its maritime connectivity by developing its port infrastructure through various projects including the Keta port project, which involves the expansion of the Port of Tema and the Port of Takoradi and the development of the proposed Boankra Inland Port and a port at Mpakadan. The Keta port project aims to provide a bulk, containerised and oil- and gas-capable commercial cargo port. Additionally, a shipyard is planned. The project will be developed in four phases, with an estimated cost of $600m for the first phase. Ghana Ports and Harbours Authority is seeking private investors with which to partner to execute the project.

To meet rising electricity demand and diversify its energy sources, Ghana is developing its energy infrastructure (see Energy chapter), including the Ayitepa Wind Farm, a 225-MW onshore wind energy project in Greater Accra. The project was in its procedural stage as of August 2023. Upon completion, the project is expected to produce 700,000 MWh of electricity and power 150,000 households with clean energy, offsetting 250,000 tonnes of CO₂ emissions per year.

In addition, the government is expanding access to potable water and proper sewage systems by upgrading water and sanitation infrastructure nationwide (see Utilities chapter). In July 2023 President Nana Akufo-Addo commissioned Phase 3 of the Five Districts Water Supply Project at Adaklu in the Volta Region, which had broken ground in September 2020. The €11.5m project was financed by a concessionary facility from Austria-headquartered Raiffeisen Bank International and is expected to benefit 89,150 people in 95 communities in the Central Tongu, Adaklu and Agotime-Ziope districts once complete.


Capital expenditure for constructing roads, schools and hospitals were projected at GHS27.7bn ($2.5bn) or 3.5% of GDP. Parliament approved GHS5.3bn ($481.2m) for the MRH’s activities for FY 2023. The allocation of GHS4bn ($363.2m) to the MRH for 2022 was reduced to GHS3.6bn ($326.9m). As of September 2022, the ministry had incurred expenditure totalling GHS1.9bn ($172.5m).

The MoWH was allocated a budget of GHS474.3m ($43.1m) for the fiscal year ending on December 31, 2023. The MSWR received GHS1.8bn ($163.4m); the Ministry of Railways Development received GHS618.2m ($56.1m); and the Ministry of Transport received GHS1.2bn ($109m). The Ministry of Communications and Digitalisation was allocated GHS787.7m ($71.5m) to develop ICT infrastructure.

The government has also been supporting recreational infrastructure development in urban areas to promote tourism and provide employment. The Ministry of Tourism, Arts and Culture is undertaking the Marine Drive project, a 97.5-ha waterfront redevelopment plan for Accra that stretches from Black Star Square to the coast. The project is a 10-year public-private partnership (PPP) that will cost $1.2bn, with the new public infrastructure including commercial, recreational and retail facilities, exhibition centres and offices.


The government recognises the value of infrastructure development as an important driver for economic growth in the country. Initiatives such as the Ghana Infrastructure Plan 2018-47 will improve transport networks, expand housing options and enhance public facilities nationwide. The government also plans to improve infrastructure through PPP projects, private investment and FDI in the mining, and oil and gas sectors, ensuring the benefits of the AfCFTA accrue to Ghana as one of the region’s major construction markets. Additionally, an increased focus on energy efficiency and environmental responsibility has generated a growing need for green buildings that are taking steps to help reduce the country’s carbon footprint.