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TRANSCRIPT
Infrastructure Investment
Opportunities In Ghana
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Presented by:
Ms. Victoria Cobbah
Ghana Investment Promotion Centre
Presentation Outline
The Ghana Advantage
Ghana’s FDI Drive
Australian Investments in Ghana
Investment Opportunities
Key Infrastructure Priority Sectors
Gaps & Opportunities
Specific Projects
Investing in Ghana
Investment Incentives & Guarantees
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The Ghana Advantage
A stable democracy, with a strong legal
and regulatory framework to support investors
West Africa’s 2nd largest economy
GDP Growth rate of 6.9% in 2014.Average
growth rate of 8% over past 6 years.
Access to 300 million ECOWAS Market
with an established financial hub in
West Africa
Best destination for ease of doing
business in West Africa – World Bank’s Doing
Business Report 2014
Highly skilled and trainable labour.
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Ghana’s FDI Drive
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Investments are allowed in all
sectors of the economy.
Joint Ventures are strongly
encouraged and promoted.
Drive for FDI is targeted and
sector-specific.
The total investment cost of
projects in 2014 stood at US$ 3.57
billion.
US$ 3.39 billion represented the FDI component.
Average of US$ 4.3 billion investment a year over the last five years.
Australian Investments in Ghana
The GIPC has registered 60
Australian projects valued in excess
of US$ 66 million.
Most Australian investments have
been in the Services sector, with 32
projects valued at US$ 60 million .
Notable Australian Companies
operating in Ghana include
DaleBrook Company, Logistics
Direct Co, SAS Services, Intertek
Minerals.
Sustained interest in Ghana by
Australian companies.
Australian Investments (1994 – 2014)
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Investment Opportunities
Key Infrastructure Priority sectors are
Energy (Power generation – Hydro, Thermal, Solar, Gas and
Biogas)
Transport (Rail and Ports)
Construction (Real Estate, Telecommunication, Oil & Gas)
Tourism (Sanitation, Retail Centres, Parks & Gardens, Resorts )
Bankable Investment Projects, drawn from these sectors, are available for consideration.
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Energy
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Energy Deficit
Current demand 2,393 MW
Available 1693 MW
Deficit 700 MW
Operational Challenges
Inadequate Investment in generation capacity
Opportunities
Network Operation & Maintenance activities in remote areas
Distribution Automation Systems
Metering and Loss Recovery
Specific Energy Projects
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PROJECTANTICIPATED
AMOUNT REQUIRED
TYPE OF COOPERATION
SOUGHT
Eastern Corridor
Transmission ProjectUS$ 72.5 million
Equity (Capital, Expertise,
Technology & Equipments
Development of
450MW Combined
Cycle Plant at Kpone
Enclave
US$ 315 millionEquity (Capital, Expertise,
Technology & Equipments)
Domunli Power
Evacuation ProjectUS$159 million
Equity (Capital, Expertise,
Technology & Equipments)
Construction
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Industrial (light industrial parks,
warehousing facilities)
Commercial (office or mixed use
space, storage facilities, model
markets, and shopping malls)
Production and marketing of
construction equipment and
building materials.
Construction
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Current residential property demand - over 300,000 units pa, with focus
on low-cost housing
Annual supply = 40,000 units.
Rent rates for commercialproperties range from $12 to $25per sqm per month.
Residential property rents rangefrom $1,500 to $3,500 per month(for bungalows in the upper endof the market).
Construction costs range from$250 -1,000 per sqm forbuildings.
Commercial Construction - Retail
Currently 7 shopping malls in Ghana, with the Accra Mall commencing business in 2007.
Between 2013 and 2015, there have been 5 new malls opening across Accra, Ghana’s capital city.
Namely, Marina Mall, Oxford Street Mall, West Hills Mall, Junction Mall, and Achimota Mall.
The Kumasi Mall is under construction, to be completed in 2016
Approx. US$370 million in investments and 130,000 sqm retail space construction.
Yet, 69% of shopping in Ghana are done in street markets across the country, with these retail malls covering 17% over the past 7 years.
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Gaps & Opportunities
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Building technologies and
materials which are ideal for
the local climatic conditions
Developing of a competitive,
and sustainable mortgage
market, in the case of
residential properties.
Developing skilled and specialized labor for construction projects.
Introduction of prefabricated or modular construction designs
Ports & Harbours
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Two main ports in Ghana presently; Tema and Takoradi Ports
Tema is the biggest and its major operations are skewed towards import
commodities such as heavy machinery, containerized cargo etc.
Operations at Takoradi are skewed towards the export trade with
emphasis on commodities such as cocoa, timber, manganese and
bauxite, etc.
Tema Harbour Expansion Project
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1) Entrance Channel & Harbour Basin 2) Breakwater 3,850 meters3) 4 berths total length of 1,400 meters.4) 120-Hectare container yard and
other user facilities.
Takoradi Harbour Expansion Project
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Increased oil & gas exploratory activities
has created major challenges in spatial
management.
Current waiting times of vessels are increasing
and deterrent to favourable port business.
This project is currently underway to expand the
port infrastructure and facilities.
reclamation of 53,000 hectares of land
dredging of an access channel
new bulk unloading facilities,
container & crane terminals
construction of oil services terminal
reconfiguration of access roads and rail lines
Current Project – Atuabo Freeport
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A dedicated Oil and Gas Free Port strategically located within the Gulf of Guinea and in the heart of Ghana's oil and gas enclave.
A Free Zone and Duty-free Port. All goods imported are exempted from duties and taxes for the period the goods remain in the Free Port.
A regional hub supporting the upstream activities and service companies.
The Port will provide
a 18.5m deep channel
three quays of varying depths
clear activity zones including Offshore Logistics, Subsea Fabrication, Rig and Vessel Repair, Business Technology Park and General Business Support Infrastructure.
Visit www.atuabofreeport.com
Specific Ports Projects
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PROJECTANTICIPATED
AMOUNT REQUIRED
TYPE OF COOPERATION
SOUGHT
Upgrade and Expansion
of Tema PortUS$ 715 million
PPP Arrangement (Design, build, finance, operate
and maintain)
Upgrade and Expansion
of Takoradi Port (Phase 2) US$ 253 millionPPP Arrangement (Design, build, finance, operate
and maintain)
Eastern Corridor Multi-Modal Transport Project
Feasibility Studiesunderway
PPP Arrangement (Design, build, finance, operate
and maintain)
Development of the Boankra Inland Port
Feasibility Studiescompleted
PPP Arrangement (Design, build, finance, operate
and maintain)
Ghana’s Rail System
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Ghana’s Rail System
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Government has the strategic objective of rehabilitating the
existing network and improving services and operating
standards:
Rehabilitating the main line locomotives
Modernization of the Western Railway Line(CDB)
Rehabilitating of the 100 main line
inter-city coaches
Rehabilitating 220 mineral wagons
Acquisition of additional 70 mineral
wagons (using Diesel Multiple Units)
Installation of modern signal
and telecommunication systems
Specific Rail Projects
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PROJECTANTICIPATED
AMOUNT REQUIRED
TYPE OF COOPERATION
SOUGHT
Reconstruction of
Western Railway LinesUS$ 303 million
PPP Arrangement (Design, build, finance, operate
and maintain)
Reconstruction of
Sekondi-Takoradi
Suburban Rail LinesUS$ 170 million
PPP Arrangement (Design, build, finance, operate
and maintain)
Establishment of Railway
and Petroleum Training Institute in Sekondi
US$ 50 millionPPP Arrangement (Design, build, finance, operate
and maintain)
Re-establishment of the
Ghana Railway Company Ltd.
US$250 millionPPP Arrangement (Design, build, finance, operate
and maintain)
Gaps & Opportunities
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Connecting South to Northern Ghana
Rehabilitation and Expansion projects
Access to landlocked ECOWAS neighbours, increased traffic
through Ghana
Building of Inland ports
Adding value and developing new businesses along rail network.
Accessing Ferry Transport Routes on Volta Lake along the main
rail network.
Investing in Ghana
Step 1 - Register with Registrar General's Department
Step 2 - Meet the Minimum Equity Contribution
Step 3 – Register with GIPC
Incentives and Guarantees Custom duties exemptions
Automatic immigrant quotas
Relief from double taxation
Repatriation of dividends and net profit
Transfer of funds in respect of servicing
of foreign loans
Guarantee against expropriation
Remittance of proceeds in the sale or
liquidation of investment
Strategic investment incentives
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Contact us today
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Ghana Investment Promotion Centre, Public Services
Commission Building, Ministries, Accra, Ghana
P.O. Box M193 Accra, GhanaT +233 302 66 5125 – 9 F +233 302 66 3801
W www.gipcghana.com