Construction & Real Estate

Infrastructure development in Ghana has seen a healthy progression over the past decade, mainly as a result of the Jubilee oil field discovery in 2007. Demand for construction surged in 2011-12 as the government commenced various large-scale infrastructure projects. However, the sector is not without its various challenges. Following the oil discoveries, local financing was readily available. As revenue began to slow and, more recently, the value of the cedi slid, depreciating by 27% against the US dollar from January to July 2014, a number of local banks became reluctant to fund large-scale infrastructure projects, as turnover requires a long-term investment. The recently established Ghana Infrastructure Fund intends to facilitate private investment, with a new public-private partnership (PPP) infrastructure law expected to be passed in late 2014. Capital generated by Ghana’s energy-led aggressive growth from 2010 onwards has both helped attract high-end real estate offerings, largely funded by foreign investors, and stoke home-grown demand. Returns on commercial property are steady but the real growth opportunity lies in the provision of affordable housing to the urbanised middle-income earners.

This chapter contains interviews with David Adjaye, Principal, David Adjaye Associates; and David Morley, Partner and Head of Real Estate, Actis.