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

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

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

Transport

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

E info@gipcghana.com

W www.gipcghana.com