Ghana: Outlook for port construction positive due to strong port infrastructure demand – Fitch Solutions
Fitch Solutions, the research arm of Fitch Ratings, has said the long-term outlook of port construction in Ghana remains positive given the strong demand for port infrastructure improvements by the country.
According to Fitch Solutions, its positive long-term outlook for port construction in the country is on the back of Ghana’s ability to attract port infrastructure investment, as the country competes with other West African markets to establish itself as a regional transhipment hub and gateway to the region’s hinterland.
Ghana’s ability to attract port infrastructure investment, the research agency further notes is due to the fact that the Ghana is well-integrated into the global liner shipping network, holding the second-highest score in the UN Conference on Trade and Development Liner Connectivity Index among Sub-Saharan African markets.
”We maintain a positive long-term outlook for port construction in Ghana, supported by strong demand for port infrastructure improvements and a favourable political risk profile. Ghana’s port infrastructure construction industry exhibits high levels of activity, with a comparatively large number of port projects currently under construction.
“The country is well-integrated into the global liner shipping network, holding the second-highest score in the UN Conference on Trade and Development Liner Connectivity Index among Sub-Saharan African markets. We expect that this will boost Ghana’s ability to attract port infrastructure investment, as the country competes with over West African markets to establish itself as a regional transhipment hub and gateway to the region’s hinterland,” said Fitch Solutions.
Trade Growth Supports Port Infrastructure Demand
Ghana – Goods Imports, USDbn
Ghana’s long-term demand for port infrastructure projects, Fitch Solutions also asserts, will be supported by stable trade growth adding that it forecasts Ghana’s goods imports (USD) to grow by 4% per annum between 2023 and 2030, following a strong short-term growth rebound in 2021 and 2022.
With a 4% per annum growth in goods imports from 2023 to 2030, the agency further notes that Ghana will have the second-largest goods imports in West Africa, trailing Nigeria in USD terms.
“Port infrastructure opportunities will be supported by a relatively well-stocked project pipeline and steady overall economic growth in Ghana, as we forecast GDP real growth rates to average 4.9% per year in the medium term,” added Fitch Solutions.
With over 109 financing roles in the country’s construction industry being occupied by development finance institutions and export banks, Fitch Solutions remarked that Ghana has a comparatively attractive industry risk profile due to its wide access to development funding.
“Ghana has a comparatively attractive industry risk profile, supported by wide access to development funding and a diverse competitive landscape. Ghana exhibits wide access to development funding, with 109 financing roles in the country’s construction industry being occupied by development finance institutions and export banks. A relatively diverse construction competitive landscape increases the accessibility of port infrastructure opportunities in Ghana to a wider array of domestic and international contractors and financiers,” stated Fitch.
Ghana Political Risk Profile More Attractive Than Peers’
Selected West African Markets – Long Term Political Risk Index
