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18Oct’25
ACEACRES 2025: 48 SPEAKERS, ONE VISION; ENGINEERING AFRICA’S FUTURE
ACEACRES 2025: 48 VOICES, ONE VISION; ENGINEERING AFRICA’S FUTURE ACEACRES 2025, held on September 29–30, was a resounding success, bringing together 48 distinguished speakers from across Africa and beyond to engage, inspire and chart a bold course for the continent’s built environment. Hosted by the Africa Continental Engineering & Construction Network (ACECN), the summit proved to be one of the most comprehensive and visionary platforms ever assembled in the sector. From infrastructure resilience to sustainable urban development, ACEACRES 2025 tackled the full spectrum of challenges and opportunities shaping Africa’s future. A Program of Depth and Diversity The two-day summit featured: 48 Expert Voices (speakers) including engineers, architects, urban planners, academics, surveyors, legal practitioners, innovators, investors, policymakers and development partners, each contributing to a shared vision of progress. Insightful Direct Presentations: Eight (8) direct presentations that delivered cutting-edge insights into emerging technologies, policy frameworks, transformative case studies and bold proposals for engineering, architecture and construction excellence. High-impact Panel Discussions: Eight (8) panel discussions where experts tackled urgent themes like climate-resilient construction, urban mobility, sustainable housing, and infrastructure financing and workforce development. Cross-sector Representation: Speakers included engineers, architects, urban planners, policymakers, academics and development partners, each bringing unique perspectives to the table. Every session was designed to spark dialogue, drive innovation and build consensus around the future of Africa’s built environment. Why ACEACRES 2025 Mattered ACEACRES 2025 wasn’t just an event, it was a continental milestone. It demonstrated: Strategic Leadership in convening the brightest minds and boldest institutions Policy Relevance in shaping infrastructure agendas across Africa Cross-sector Collaboration that bridged public, private and civil society perspectives Momentum for Change that continues beyond the summit A Call to Partners, Sponsors & Visionaries The success of ACEACRES 2025 is a clear signal: Africa is ready to build smarter, stronger, and more sustainably. We invite corporate organizations, development partners, professional bodies, and visionaries to join us in scaling this movement. Your partnership fuels innovation, amplifies impact and helps shape the future of Africa’s cities and communities. Author Daniel Kontie Chief Executive Officer Africa Continental Engineering & Construction Network Ltd Email: d.kontie@acecnltd.com Contacts: +233209032280 or +233558650199
18Oct’25
ACEACRES: BUILDING MOMENTUM AND UNITING AFRICA’S BUILT ENVIRONMENT THROUGH STRATEGIC INDUSTRY STAKEHOLDER COLLABORATIONS
ACEACRES: BUILDING MOMENTUM AND UNITING AFRICA’S BUILT ENVIRONMENT THROUGH STRATEGIC INDUSTRY STAKEHOLDER COLLABORATIONS In just three years, the African Continental Engineering, Architecture, Construction and Real Estate Summit (ACEACRES) has evolved from a visionary concept into one of the most influential platforms driving Africa’s built environment transformation. What began in 2023 with zero formal stakeholder collaboration/partnership has now blossomed into a continental movement, with 12 collaborators/partners in 2024 and an impressive 16 industry associations and corporate partners in 2025. This rapid growth is not by chance. It is the result of a clear mission, strategic leadership and an unwavering commitment to creating a unified ecosystem for Africa’s engineering, architecture, construction and real estate sectors. From Vision to Movement: The ACEACRES Story ACEACRES was founded on a bold vision; to create a central platform that brings together professionals, investors, policymakers and innovators from across the built environment value chain to discuss challenges, showcase solutions, and unlock new opportunities for Africa’s infrastructure growth. In its early days, collaboration was a dream rather than a reality. Many industry players watched from a distance, unsure of how the initiative would evolve. But through consistency, transparency, and the delivery of high-impact events, ACEACRES quickly began to prove its value and relevance. By 2024, 12 key collaborators; including industry professional bodies, corporate institutions, regulators and development agencies had come on board. Their participation injected both credibility and depth into the summit. The 2025 edition saw this number rise to 16 strategic collaborators, a clear sign that ACEACRES is now viewed as the home for continental dialogue and partnership in Africa’s built environment sector. Driving Impact through Collaboration What makes ACEACRES unique is its collaborative DNA. Each year’s summit is co-created with industry stakeholders who contribute not only resources but also technical insight, expertise, and networks. This inclusive approach ensures that discussions at ACEACRES are practical, solution-driven and tailored to the realities of Africa’s infrastructure landscape. Among the industry stakeholders who partnered with ACEACRES over the years include; Institute of Engineering & Technology, Ghana (IET-GH), Real Estate Agency Council, Ghana (REAC), Engineering Council, Ghana (EC), Local Government Service Engineers Association (LoGSEA), International Facility Management Association (IFMA), Ghana Real Estate Brokers Association (GAREB), Ghana Electrical Contractors Association (GECA), Certified Electrical & Wiring Professionals Association (CEWPAG), Interior Designers & Decorators Ghana (IDDG), Ghana Institute of Safety & Environmental Professionals Association (GhISEP), National Association for Heavy-Duty Equipment Operators Association (NAHEOG), Commercial Quarry Operators Association (COQOA), Chamber of Iron & Steel Industry, Ghana (CISIG), Chartered Institute of Builders (CIOB), Bricks & Tile Manufacturers of Ghana (BTMOG), Ghana Consulting Engineers Association (GCEA), Nigerian Society of Engineers (NSE) and Sierra Leon Institution of Engineering (SLIE). These partnerships have strengthened cross-sector linkages, connecting engineers with architects, contractors with real estate developers and policymakers with innovators. Together, they are shaping the future of sustainable urbanization, resilient infrastructure and smart city development across the continent. Why Industry Associations Should Partner with ACEACRES ACEACRES is not just an event; it’s a continental collaboration hub. Industry associations that partner with the summit gain access to; visibility and influence across the entire built environment ecosystem, networking opportunities with investors, policymakers and private sector leaders from across Africa, knowledge exchange on emerging trends, technologies and policies shaping the sector and joint advocacy platforms to push for reforms, standards and innovation-driven growth. The growing number of partnerships demonstrates one thing clearly; ACEACRES is where Africa’s built environment community converges to shape the future. Looking Ahead: The Road to 2026 and Beyond As ACEACRES continues its upward trajectory, the focus remains on deepening partnerships, expanding regional representation, and facilitating actionable outcomes that transform Africa’s infrastructure landscape. From zero collaboration in 2023 to sixteen strong partnerships in 2025, ACEACRES has proven that collective effort is the key to achieving sustainable development and excellence across the built environment. Now, the movement is calling on more industry associations, professional bodies and corporate institutions to join forces in this transformative journey, because the future of Africa’s infrastructure depends on collaboration, not competition. Join the ACEACRES Movement Now Together, we can build a stronger, smarter and more sustainable built environment for Africa. Partner with ACEACRES today and be part of this forward-thinking transformation. Our Contacts GH: +233 20 903 2280 GH: +233 55 865 0199 GH: +233 26 178 1279 UK: +44 740 573 9273 Author Daniel Kontie Chief Executive Officer Africa Continental Engineering & Construction Network Ltd Email: info@acecnltd.com d.kontie@acecnltd.com Website: https://www.acecnltd.com/ Address: 6 Flower Street-East Legon
17Oct’25
CELEBRATING AFRICA’S BEST: THE AFRICAN CONTINENTAL BUILT ENVIRONMENT EXCELLENCE AWARDS, ITS PURPOSE, ELIGIBILITY, NOMINATION CRITERION & ROLE IN SHAPING AFRICA’S SUSTAINABLE FUTURE (ACBEEA)
CELEBRATING AFRICA’S BEST: THE AFRICAN CONTINENTAL BUILT ENVIRONMENT EXCELLENCE AWARDS AND ITS ROLE IN SHAPING AFRICA’S SUSTAINABLE FUTURE (ACBEEA) About the Awards As part of the African Continental Engineering, Architecture, Construction & Real Estate Summit (ACEACRES), Africa’s leading annual Built Environment Summit which seeks to build an integrated African built environment for socio-economic transformation of the continent through high-end business networking, sustainable partnerships/collaborations for both corporate growth and continental prosperity at large. The African Continental Built Environment Excellence Awards (ACBEEA) comes as short ceremony climaxing the event at every edition. Its objective is to recognize and celebrate outstanding and innovative achievements among brands in the African built environment. The awards seek to promote innovation and excellence in construction, engineering, architecture, real estate as well as logistics, equipment and building material supplying sector of the built environment, contributing to the development of a more sustainable and resilient African built environment. The Summit is a grand gathering of influential building contractors, civil/electrical engineers and contractors, surveyors, planners, architects, project managers, real estate developers, road contractors, building and construction material/equipment suppliers, glaziers, fabricators, interior deco companies and professionals, roofing companies and technicians, transport & logistics companies, energy and power service providers, facility management professionals, legal practitioners, project management professionals and institutions, investors, financial institutions, policy makers, artisans and the diaspora community et cetera. Objective of the Awards Recognize and Celebrate Excellence: Acknowledge and celebrate outstanding achievements in exceptional excellence in the African built environment. Recognize and Celebrate Innovation: Encourage and reward innovation and creativity in the African built environment. Share Best Practices: Provide a platform for sharing best practices, knowledge and technology among industry professionals. Award Benefits By participating in the African Continental Built Environment Excellence Awards (ACBEEA), organizations and individuals alike can demonstrate their commitment to innovation and excellence in the African built environment whilst gaining recognition and benefits that can enhance their reputation and business opportunities. Prospective participants can: Gain International Recognition: Showcase their projects and achievements to a global audience, enhancing their reputation and credibility. Network with Industry Leaders: Connect with industry leaders, experts, and peers, potentially leading to new business opportunities and partnerships. Improve Brand Visibility: Increase brand visibility and awareness, both locally and internationally. Access to Knowledge Sharing: Benefit from knowledge sharing and best practices in built environment solutions. Enhance Business Opportunities: Potentially attract new clients, investors, and partners. Awards’ Area of FocusThe awards will feature various categories under but not limited to the following key thematic areas: Excellence and Innovations in Architecture Excellence and Innovations in Green Building Technologies Excellence and Innovations in Building and Construction Materials Eligibility CriteriaThe award is open to all stakeholders of the African Built Environment (public, private or regulatory) and prospective awardees must satisfy all the following conditions: Must be legally registered with the registrar general’s department of its country of origin. Must have an identifiable physical office address or location. Must have all regulatory certifications to operate in its area of practice. Judging and Selection CriteriaThe selection is based on a unilateral judgment of a panel of esteemed judges for all award categories based on the following variables: Innovation Excellence Impact Technology Brief Profile of Event Organizer The Africa Continental Engineering & Construction Network Ltd is a Pan African built environment and real estate firm based in Ghana but has a wide network of projects and network of built environment professionals across the African continent and beyond. Our Vision To be among Africa’s top five (5) built environment conglomerate in the next 10 years from 2024 while creating a strong continental network aimed at integrating Africa’s fragmented built environment through high-power professional and regional industry networking across the globe. Our Mission To be the industry game-changer in the delivery of superior general-built environment services in all disciplines whilst championing the course of contemporary innovations and excellence geared towards the socio-economic transformation of the African continent. Our Values Integrity Professionalism Sustainability. Our Contacts GH: +233 20 903 2280 GH: +233 55 865 0199 GH: +233 26 178 1279 UK: +44 740 573 9273 Author Daniel Kontie Chief Executive Officer Africa Continental Engineering & Construction Network Ltd Email: info@acecnltd.com d.kontie@acecnltd.com Website: https://www.acecnltd.com/ Address: 6 Flower Street-East Legon
08Oct’25
FROM VISION TO IMPACT: THE RESOUNDING SUCCESS OF THE 3RD AFRICAN CONTINENTAL ENGINEERING, ARCHITECTURE, CONSTRUCTION AND REAL ESTATE SUMMIT (ACEACRES 2025)
FROM VISION TO IMPACT: THE RESOUNDING SUCCESS OF THE 3RD AFRICAN CONTINENTAL ENGINEERING, ARCHITECTURE, CONSTRUCTION AND REAL ESTATE SUMMIT (ACEACRES 2025) ACEACRES 2025 has once again cemented its position as Africa’s premier platform for advancing innovation in the built environment and infrastructure development. This year’s edition, themed “Revolutionizing the Built Environment for Sustainable Infrastructure Development Through the Use of Disruptive Innovations, Big Data and Quantum Technologies,” brought together Africa’s brightest minds; engineers, architects, policymakers, investors, academics, and industry stakeholders, under one roof in Accra for two impactful days, September 29th and 30th, 2025. In his opening address, Mr. Daniel Kontie, CEO of the Africa Continental Engineering & Construction Network and Convenor of ACEACRES, delivered an inspiring message emphasizing African self-belief and the importance of collaboration. He affirmed that “Africa possesses the intellectual capital necessary to design, construct, and execute complex infrastructure projects synonymous with global standards.” Mr. Kontie called for a concerted effort across the African private sector encouraging banks, insurance firms, facility management companies, and innovators to partner in funding, constructing, managing, and protecting infrastructure investments through strategic insurance policies. Objective The core objective of the summit was to reflect on how Africa can close its infrastructure gap and develop strategies to position the continent among the world’s economic powers. Organized by the Africa Continental Engineering & Construction Network Ltd (ACECN), in collaboration with industry stakeholders, ACEACRES 2025 served as a vital gathering of professionals across the built environment spectrum; building contractors, engineers, surveyors, architects, project managers, real estate developers, suppliers, financiers, regulators, IoT experts, AI professionals, sustainability consultants, artisans, and more. Attendance The summit garnered over 400 in-person participants from Ghana and Nigeria, with the majority from Ghana. Notably, there were high-level representatives from the Angolan, Egyptian, and Turkish embassies as well as Nigerian developers, underlining the continental significance of the event. Leadership of Industry Partner Associations Prominent industry leaders in attendance included Ambassador Engr. Richard Ben Debrah, President of LoGSEA; Mr. Emmanuel Semedor, Executive Secretary of the Ghana Electrical Contractors Association (GECA); Mr. Samuel Nii N. Tackie, Vice President of CEWPAG; Engr. Jacob Ansong, President of GAREB; Dr. Gabriel Apotey of GhISEP; Mr. Sam Ekuban of Brick & Tile Manufacturers of Ghana; Mr. Emmanuel Jeffery of REAC; Engr. Dr. Mrs. Mariam Eduful of GhISEP; Ing. Felix Atsrim of Fedems Group; and Ambassador Gifty Nyarko of LoGSAPP, among others. Key Issues Discussed The summit prioritized the urgent need to bridge Africa’s infrastructure deficit via innovative Public-Private Partnership (PPP) models. Discussions featured 48 expert speakers across eight panel sessions and eight industry-led presentations, focusing on leveraging local solutions; banking, insurance, and facility management alliances to finance infrastructure projects, reducing reliance on external development loans. Exhibitions & Sponsors The event showcased cutting-edge innovations, products and services from a diverse array of sponsors and stakeholders, facilitating B2B and B2C networking opportunities. These engagements enabled participants to forge strategic partnerships, learn from successful case studies, access emerging trends, and explore new business niches. Key sponsors included Five Continents Bricks Company Ltd, Alendo Group, Alpha Engineering Services Ltd, Allied Home Stores Ltd, Nyonaah Developers, CBI Ghana, African Diamond Cable Ltd, MPC Ltd, Aya Toptech & Fabrication Ltd, and AAMUSTED (academic exhibitor). Other notable sponsors were Premier Steel, McDan Group, and the Primus Group. Strategic Partners The summit also benefited from the support of 15 strategic partners such as the Ghana Institution of Engineering and Technology (IET-GH), Ghana Electrical Contractors Association (GECA), the Ghana Institute of Safety and Environmental Professionals (GhISEP), the Chartered Institute of Builders (CIOB), the International Facility Management Professionals Association (IFMA Ghana Chapter), the Ghana Consulting Engineers Association (GCEA), and others, all committed to driving industry excellence and collaboration. The Awards Ceremony The summit culminated in the prestigious African Continental Built Environment Excellence Awards (ACBEEA), recognizing industry trailblazers for innovation and sustainability. A total of 15 awards were presented; 13 corporate awards and two (2) individual accolades. Award recipients included the Alendo Group, Alpha Engineering Services Ltd, B5 Plus Group, Cab Royale Ltd, Culnad Construction, Nimarc Consult, Berock Construction Ltd, B. O. Nhyira Engineering, McDan Group, Afro Arab Properties, Construction Ambassadors Ltd, and the Akmodel Group of Nigeria. In his concluding remarks, Mr. Daniel Kontie the convenor stressed the need for stakeholders of the African built environment to work strategically and tirelessly towards bridging the infrastructure gap which has been a bane to the economic development of the continent. He prayed for a long live for the vision of ACEACRES, long live for Ghana and long live for the African Continent. The organizer is the Africa Continental Engineering & Construction Network Ltd (ACECN), a Pan African built environment and real estate firm based in Ghana but has a wide range of projects and network of built environment professionals across the African continent and beyond. Its vision is to be among Africa’s top five (5) built environment brands in the next 10 years from 2024 while creating a strong continental network and integration of Africa’s fragmented built environment through strategic stakeholder collaborations and a high-level professional networking Summits. The mission is to be the industry game-changer in the delivery of superior general-built environment services in all disciplines while championing the course of contemporary innovations and sustainability geared towards the socio-economic transformation of the African continent. Media Contacts Mr. Daniel Kontie, (Founder & Chief Executive Officer, Africa Continental Engineering & Construction Network Ltd) Website: https://www.acecnltd.com/ E-mail: d.kontie@acecnltd.com Telephone: +233209032280/+233558650199
10Jul’25
IMPACT OF GHANA’S 24-HOUR ECONOMY ON THE CONSTRUCTION AND REAL ESTATE SECTORS: EXPLORING THE OPPORTUNITIES, CHALLENGES AND RECOMMENDATIONS
IMPACT OF GHANA’S 24-HOUR ECONOMY ON THE CONSTRUCTION AND REAL ESTATE SECTORS: EXPLORING THE OPPORTUNITIES, CHALLENGES AND RECOMMENDATIONS A few weeks after reading the 2025 Budget Statement and Economic Policy, we published an article in the Business & Financial Times Newspaper (B&FT) and on our website (Africa Continental Engineering & Construction Network Ltd). In that article we expounded the opportunities in the Budget Statement for the built environment and how the Real Estate and Construction Industry could take advantage of the opportunities. Key among the identified opportunities discussed was the 24-hour Economy and Accelerated Export Development Program. Fast forward on July 2, this groundbreaking policy has been launched, and our mission today is to delve into how this transformative economic policy can impact the Construction and Real Estate Industry, the opportunities, the inherent challenges and to offer recommendations on how the policy could further be shaped to deliver optimal results for the building, construction and real estate sectors. The introduction of the 24-hour economy is expected to drive a paradigm shift in Ghana’s economy with the aim of changing the structure of the economy from the current import-driven to a production-based or manufacturing economy to stimulate growth across all sectors. The policy is designed to promote continuous operations beyond the traditional 8-hour work schedule and presents unique opportunities for all sectors of the economy and by extension, the construction and real estate sectors. The Policy comprises eight interconnected sub-programs that form its foundation and these include Grow24 (agriculture), Make24 (manufacturing), Build24 (infrastructure), Fund24 (financing), Show24 (creative economy and tourism), Connect24 (logistics), Aspire24 (human capital development), and Go24 (governance and civic engagement), with the Build24 being the thematic area or program designed to deal with our industry, the Building, Construction and Real Estate sectors. Now stay connected, do not go away and let us discuss Build24 together, remember to share your views via the provided email address and your constructive views shall be adopted and acknowledged in subsequent updates of this article. Transformative Role of the 24-Hour Economy The 24-hour economic policy has the potential to transform the construction and real estate sectors in several ways. These areas of transformation include but not limited to the following, timely completion of projects, enhanced construction speed, foreign direct real estate investment attraction, job creation, increased demand and supply chain pressures, stimulating innovative industry growth and enhanced construction activities across major cities. Enhanced Construction Activities If the 24-hour Economy is fully implemented in the construction and real estate sectors, it will require not only housing projects but general basic infrastructure such as access roads, bridges et cetera that will support round-the-clock operations. This demand will undoubtedly lead to a dramatic expansion in construction projects, including commercial buildings, residential complexes and transportation infrastructure. Already, the resumption of major stalled projects in 2024 this year has come with a certain level of sector boost within the first two (2) quarters of the year. Demand for building materials has gone up dramatically as a result, according to a short survey we did at the 2nd quarter ending. Therefore, the full implementation of the 24-hour economy will lead to a substantial increase in construction activities across major cities. Increased Demand and Supply Chain Pressures The operationalization of the 24-hour economy will lead to timely completion of projects, potentially leading to increased demand for building materials, tools and equipment. Materials such as cement, steel, paint, plumbing, electricals, roofing sheets, granite chippings, sand, concrete blocks, fiber, et cetera will surge, putting pressure on suppliers. What this means essentially is that sector players should start expanding their stock storage spaces to be able to accommodate more materials in expectation of this demand. It is also likely to trigger innovative ways of doing business in the sector. Online automation, ordering, tracking and third-party delivery systems are likely to emerge. This is going to increase efficiency if the supply chain is well managed to avoid distortions. It is an opportunity for forward-thinking suppliers to make lifetime fortunes out of this. But even though this sounds good, unintended outcomes may occur, there could be price hikes for locally made building materials if the supply is unable to meet the demand. Investment Attraction A smooth implementation of the 24-hour economy will improve Ghana’s attractiveness to both local and foreign direct real estate investors by the level of efficiency and modernization that may have come as a ripple effect of the policy. Streamlined processes and job schedules extending beyond traditional 8-hrs will enhance productivity leading to higher investor confidence. This will attract more investments in the construction, real estate and general infrastructure across major cities in Ghana. Job Creation The expansion in operations that will come as a result of the extended work hours beyond the traditional 8-hours will create new employment opportunities in the value and supply chains in construction and real estate services. This shift will create more roles or jobs that will require the engagement of more hands leading to massive employment in the sector if the 24-hour economy policy is well implemented in the sector. Challenges and Mitigation Strategies While the implementation of the 24-hour economy may come so easy to other sectors of the economy, several challenges may prevent its success in the construction and real estate sectors. Challenges such as significant increases in operational costs, workforce fatigue and security concerns on project sites et cetera. Addressing these issues will require comprehensive policies and stakeholder collaboration. Recently, I watched one of the government appointees on a national media platform and he mentioned that the 24-hour economy is designed to be driven by the private sector instead, not the public sector as many think, he said. If indeed what he said is true, then getting the full benefit of this policy for the construction and real estate sector in particular may not materialize. We shall deal with some foreseeable challenges and further give recommendations on some public sector initiatives that could enhance the derivation of optimal results from this all-important
03Jul’25
UNDERSTANDING WHY REAL ESTATE PROPERTIES IN GHANA ARE PRICED IN US DOLLAR: DEMYSTIFYING THE CAUSES AND IMPACTS
UNDERSTANDING WHY REAL ESTATE PROPERTIES IN GHANA ARE PRICED IN US DOLLAR: DEMYSTIFYING THE CAUSES AND IMPACTS Before I entered the real estate industry, I used to question why properties in Ghana are most often priced in US Dollars even though the national currency is not the US Dollar. I became an ardent critique of the practice and frown at any property I see listed in US Dollars until I entered the real estate industry. Similarly, in the last three (3) years, I have had people ask the same question repeatedly, on several industry conferences and platforms. But what made me more concerned and triggered the decision to publish this article is an emotional video someone posted on Facebook a couple of months ago. The gentleman featured in the video literally insulted industry players for always quoting property prices in US Dollars and went ahead to jubilate over the ratios of losses suffered by sector players occasioned by the precipitous decline in value of the US Dollar against the Cedi in recent times. Despite the public’s disgust for this phenomenon, “it is also illegal to price, advertise, or receive payment for goods and services in foreign currency without authorization from the Bank of Ghana pursuant to Section (3) (1) and (4) of the Foreign Exchange Act, 2006 (Act 723). One would then wonder why the public, including some parastatal institutions, are still engaging in this act even though the law frowns on it. Therefore, the purpose of today’s article is to educate the public about why real estate property prices are most often quoted in US Dollar in defiance of law in Ghana. But before we go into the details, it is important to remind you that Ghana is not the only developing economy where real estate properties are quoted in US Dollar. For want of space and time, we may not be able to mention many, but this practice is also prevalent in countries such as Nigeria, especially in Lagos and Abuja where majority of Nigeria’s high-end properties are situated, Nairobi, Kenya, Harare, Zimbabwe, Luanda, Angola, Maputo, Mozambique etc. Even there is enough evidence of this practice outside the African continent as well, to cite a few, Panama, United Arab Emirates (UAE), Cambodia, Vietnam and some Caribbean nations etc also quote real estate property prices in US Dollars. Now the multimillion-dollar question many ask and do not get the answers is this, why is this the case in Ghana and the aforementioned countries. Do not go away, the answer to this question is finally here, get a glass of a chilled soft drink and stay tuned as we run you through the basic economic principles behind these decisions. We shall be looking at a few, among which are these; currency instability, high direct foreign demand, a hedge against inflation and finally, a hedge against exchange rate depreciation losses. We shall conclude by giving economic impacts, whilst offering some recommendations for consideration by policy makers and the public. Currency Instability Ghana has always remained an import-driven economy, and this has made the Cedi a volatile currency among major global currencies since independence. This volatility comes with exchange rate depreciation losses to both private individuals and businesses. Therefore, in order to hedge investments and other assets against these depreciation losses, developers and investors price properties in US Dollars. Remember that the US Dollar is one of the most stable currencies across the globe and denominating property prices in the US Dollar serves as a preserve of value or a hedge against the impacts of local currency volatility. This ensures that the value of the property or the investment in question remains relatively constant over time. Let me cite a practical example for ease of understanding. The average US Dollar to Cedi exchange rate at the end of 2023 was Ghs 11.91/1US Dollar and it shot up astronomically within a short period to Ghs 15.84 in early 2024. If in 2023 I had a property that is listed for sale at Ghs 200,000 its UD Dollar equivalent at that time will be approximately USD$16,797.65 at the exchange rate of Ghs 11.91/1US Dollar. If I fail to sell it at that time and eventually sell it in 2024 at the same Ghs 200,000, the US Dollar equivalent of my Ghs 200,000 now will be USD$12,626.26 approximately instead of the USD$16,797.65. This will lead to an exchange rate depreciation loss of about USD$4,171.38 with its Cedi equivalent being Ghs 66,074.78. This in percentage terms will be about 33% loss, holding all other variables constant. This is significant!. It is therefore natural to see smart investors and individuals alike price their properties in a more stable currency, the US Dollar, rather than an extremely volatile currency such as the Cedi. Inflation Hedge Apart from the impact of exchange rate volatility, inflation over time erodes the purchasing power of local currencies. I mentioned this in one of my articles, properties are not like a tent that can be assembled in minutes. They take years to complete and even the selling takes a much longer time sometimes, particularly high-end properties. What this means essentially is that one property listed for sale can go through several waves of inflation and exchange rates, just as it is the case with the construction process. Therefore, developers will undoubtedly protect their investment against the cataclysmic effects of these volatilities over time. For ease of comprehension, let me use another practical example here also, on the assumption that all other variables are held constant. If a property is listed for sale at Ghs 100,000 at a time inflation rate was 10% and sells in two (2) years later when inflation rate stood at 20%, practically, the real value of Ghs 100,000 will drop. Using simple arithmetic, value after first year when inflation was 10% will be Ghs 100,000 (1+0.10) which will be equal to Ghs 110,000. Let’s take a look at the second year where inflation is 20%. Ghs 110,000
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