Ghana in Focus Special: Tackling the Soaring Costs of Construction in Ghana - A Guide for International Investors

Ghana / Afrika in Focus

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The latest episode of Ghana in Focus, tackles a pressing issue: the soaring costs of construction in Ghana. As building material prices continue to climb, this episode serves as an essential guide for those who want to build their property in Ghana.
Kwame opens the episode by discussing the significant increase in building material prices over the past two years. Cement, for example, has seen its price double or even triple. This drastic change is attributed to a combination of factors including the depreciation of the Ghanaian cedi against major foreign currencies, increased import duties, and inflation.
Kwame emphasizes the urgency of starting construction projects now, despite the escalating expenses. The financial landscape is rapidly evolving, and delays could mean even higher costs in the near future. For instance, a three-bedroom house that could be built for $70,000 just a few years ago now requires a much larger budget.
Kwame provides practical advice on converting Ghanaian cedi prices into dollars, pounds, and euros, helping international investors better grasp the financial implications. This detailed breakdown is invaluable for anyone considering investing in Ghana’s real estate market.
Kwame delves into the reasons behind the soaring costs. One primary factor is the depreciation of the cedi. At the beginning of the year, the exchange rate was 10 cedis to a dollar, but by mid-year, it had increased to 15.5 cedis to a dollar. This depreciation increases the cost of imported materials, which are a significant component of the construction industry in Ghana.
The episode also explores the lack of local production as a critical issue. Even materials that are supposedly manufactured in Ghana, such as cement, rely on imported components. This dependency on foreign goods makes the construction industry vulnerable to global market fluctuations and currency depreciation. Additionally, transportation costs within Ghana are high due to rising fuel prices, adding another layer of expense.
Despite these challenges, Kwame provides actionable solutions for international investors. He suggests considering alternative building materials like bricks, recycled plastics, and raffia wood, which can be more cost-effective than traditional methods.
Sources:
Price of Iron Rods, Cement, etc - Building in Ghana (youtube.com)
Alternative building ideas:
https://youtu.be/tTVEuSE2WKM ---- Rafia palm/wood
https://youtu.be/HUF1CAcbIZo ----- Brick house

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