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Business News of Tuesday, 31 August 2021

Source: www.ghanaweb.com

Ghana’s construction sector ranked 7th best in value for Sub-Sahara Africa – Fitch report

The construction sector witnessed a positive growth of 14.2% in the first quarter of 2021 The construction sector witnessed a positive growth of 14.2% in the first quarter of 2021

• Ghana’s construction industry has ranked 7th in value for Sub-Sahara Africa

• The sector also ranked 6th in attractiveness for the sub-region

• The construction sector witnessed a positive growth of 14.2% in the first quarter of 2021


International research agency, Fitch Solutions has placed Ghana’s construction sector in the 7th position in Sub-Sahara Africa with a value of US$9 billion.

On the attractiveness of the market, Fitch also ranked Ghana’s risk profile as the sixth in the sub-region.

Explaining the rationale behind the rankings, Fitch in its report pointed that Ghana’s construction sector witnessed a positive growth of 14.2 percent in the first quarter of 2021 as compared to other countries in the sub-region.

It further noted that contractors working in Ghana were less exposed to adverse political risks as compared to other markets in Africa.

“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.”

The research agency said construction firms working on road contracts in Ghana often gained a comparatively attractive labour market which is largely characterised by a large and expanding workforce, low labour costs and a rather strong female participation in projects.

It said Ghana’s competitive wage costs are comparatively supported by high levels of productivity and reasonable 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”, the agency 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.

Meanwhile in the full rankings, Fitch Solutions placed Nigeria in first place with regards to the value of construction firms operating in the country.

Nambia and South Africa on the other hand placed 1st and 2nd respectively when regards to the most attractive construction markets in the sub-region.

See the rankings below: