Ghana’s Construction Sector Set to Expand by 7.6% in 2025 Amid Post-Crisis Recovery — Fitch Solutions
Ghana’s construction industry is projected to grow by 7.6% year-on-year in real terms in 2025, as the sector continues its rebound from the significant contractions witnessed during the peak of the country’s economic crisis, according to new analysis by Fitch Solutions.
The anticipated growth comes on the back of a strong 9.6% expansion in 2024, supported by a recovery in public infrastructure investment and a buoyant real estate market.
Fitch attributes the sector’s resurgence to moderating inflation, improved fiscal space for capital expenditure, and increased demand for residential and commercial infrastructure in key urban centres such as Accra and Kumasi.
Sector Rebounds After Crisis-Induced Decline
The construction sector had been one of the hardest-hit segments of the economy in recent years, shrinking by 6.8% in 2022, and a further 11.2% in 2023, as macroeconomic instability and public spending cuts under the IMF programme weighed heavily on activity.
The 2022 downturn followed Ghana’s sovereign default, which triggered a severe economic crisis marked by a sharp depreciation of the cedi, depleted foreign reserves, and runaway inflation. The International Monetary Fund (IMF) noted that these conditions significantly eroded investor confidence, particularly in capital-intensive sectors like construction.
With the approval of the US$3.0 billion IMF Extended Credit Facility (ECF) in May 2023, the government embarked on sweeping fiscal consolidation efforts, curtailing public investment and compounding the sector’s contraction in that year.
Pre-Election Spending Boosts 2024 Growth
However, 2024 marked a pivotal turning point, as capital expenditure surged by 39.2% year-on-year, driven largely by increased government infrastructure spending ahead of the December 2024 general elections.
This expenditure contributed significantly to the sector’s growth and was further supported by a resilient real estate market, bolstered by rising urbanisation and strong demand for housing and commercial property.
Fitch expects urbanisation trends to remain a key driver of long-term construction growth. Ghana’s urban population is projected to expand by 2.7% annually over the next decade, with urban residents forecast to account for 65.5% of the total population by 2034, up from 59.8% in 2024.
Outlook Remains Positive
Despite lingering fiscal pressures and the need for continued macroeconomic stability, the outlook for Ghana’s construction sector remains broadly positive. Fitch’s projection of 7.6% growth in 2025 suggests the industry is on course for sustained recovery, underpinned by structural urbanisation, real estate development, and renewed investor confidence.
The momentum, however, will depend on continued macroeconomic reforms, stable inflation, and the effective implementation of public infrastructure commitments under the medium-term development agenda.
