President of Building Contractors urges members to keep hope alive

Building contractors have been encouraged not to abandon their trade but be hopeful of a brighter future.

That was the advice by the president of the Association of Building and Civil Engineering Contractors of Ghana (ABCECG) Prosper Yao Ledi, following a recent report by the Ghana Statistical Service indicating that the construction sector recorded a negative growth last year.

In a statement, he noted that the previous year was harsh for building contractors with many contemplating abandoning their business. But he urged them to remain steadfast and strategise for a better future.

Mr. Ledi particularly encouraged registered foreign contractors to shelve the idea of relocating to other countries, adding that with continuous advocacy, the business environment will get better.

Construction companies have been struggling for years, largely due to unpaid arrears and complaints of unfair award of contracts to cronies. Moreover, the rapid depreciation of the cedi for the most part of last year, with the attendant rising cost of building materials, worsened their already bad situation.

According to figures released by the Ghana Statistical Service, the Construction sub-sector of the economy contracted significantly, recording a -4 percent growth in 2022.

The negative growth in 2022 reflects the hardship contractors went through, due to fewer jobs and accumulation of arrears alongside the hikes in prices, Mr Ledi said.
The ABCECG President described last year as a very difficult one for the industry as it has been for many other businesses. But he explained that he and his executives are constantly looking for innovative ways to create a congenial atmosphere for members, including exploring construction opportunities in the West Africa subregion and elsewhere.

Mr. Ledi said the Association is paying critical attention to the African Continental Free Trade Agreement (AfCTA) to see how Ghanaian contractors can leverage on the Agreement and partner contractors from other African countries, to extend their operations beyond Ghana, under the AfCTA arrangement. “Thanks to AfCTA, we can venture into other African countries with much ease than previously, so we will vigorously pursue that agenda this year”.

Mr Ledi challenged the government to pay particular attention to the construction industry to save jobs and help create wealth for the population. He urged the government to ensure that more contracts are awarded to registered indigenous contractors to support the formalization of the sector.

The ABCECG President explained that construction was an important growth pole that government can take advantage of to create jobs for the teaming unemployed youth, create wealth and improve the country’s infrastructure.

“When the government puts money into construction, the benefits are massive. Many different jobs, both skilled and unskilled are created, wealth is generated and life becomes better for all, because of additional infrastructure. If you support our sector, the country benefits immensely but if you neglect the sector, many people get agitated’

Mr Ledi urged the government to be more engaging with the industry to ensure it benefits from the knowledge and experience of contractors, in developing the country.