Transport infrastructure and services opportunities in GhanaFollow @MadeItInAfrica
Investors are invited to invest in Ghana‘s transport infrastructure and services. Identified as one of government’s priority areas to be developed under its medium term plan, transport services offer exciting opportunities especially in mass transportation – scheduled bus system, rail upgrades and passenger rail transport on chosen corridors, lake transport system (exports and imports to and from land locked neighbours of Burkina Faso, Mali and Niger), air transport operators for domestic and sub-regional services, as well as, upgrading of existing trunk roads.
Road transport is the predominant mode of transport in Ghana, accounting for the vast majority of freight and passenger travel. Ghana’s road construction boom followed the country’s independence in 1957. The road network at that time, though significant, was not well maintained. It began to deteriorate in the 1970s until the commencement of the structural adjustment programme in 1983. By the 1990s, Ghana had experienced marked improvement in its road network that led to its emergence as a hub linking the entire West African trading zone. The privatisation of many of Ghana’s transport and logistics enterprises has also led to greater efficiency in these areas.
Local and foreign investors have the opportunity to invest in the following areas:
Road construction and maintenance
The cost of road construction and maintenance is borne by the government while private contractors assume the task of implementation. Major opportunities in the sector are in the form of contracts between the Ministry of Roads and Highways and local and international engineering firms via competitive bidding. The exception is where emergency works are concerned, in which case selective tendering is employed. Eligibility for bidding on public road construction and rehabilitation projects requires the registration of prospective contractors with the Ministry. Donor groups such as the World Bank, African Development Bank, JICA, USAID, DANIDA, DFID and GTZ often underwrite road projects tendered by the Ministry.
Entry into the public transportation field is unrestricted. Most services are offered by private operators and competition is keen despite the presence of two state-owned firms, City Express Bus Company Ltd and the Omnibus Services Authority. Both companies are un-subsidised and presently on the government’s divestiture list. Another company, STC, has already been divested and now operates trucking services between the main urban centres.
Automobile sales and service
Another growth area is that of vehicle sales and after-sales service. Companies like PHC motors, Silver Star, Vodi Technik and Mechanical Lloyds are all operating dealerships with service centres in Ghana. In addition to car and truck sales, a number of firms also deal in modern vehicle diagnostic systems. Hundreds of independent dealers also serve the second-hand automobile market.
Investors interested in any of the above opportunities should contact the Ghana Investment Promotion Centre at: