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05Jun’25
PRESS RELEASE: THE 3RD AFRICAN CONTINENTAL ENGINEERING, ARCHITECTURE, CONSTRUCTION AND REAL ESTATE SUMMIT (ACEACRES, 2025) COMES OFF 29TH SEPTEMBER 2025 – 30TH SEPTEMBER 2025.
PRESS RELEASE: THE 3RD AFRICAN CONTINENTAL ENGINEERING, ARCHITECTURE, CONSTRUCTION AND REAL ESTATE SUMMIT (ACEACRES, 2025) COMES OFF 29TH SEPTEMBER 2025 TO 30TH SEPTEMBER 2025. The Africa Continental Engineering & Construction Network is set to organize the 3RD African Continental Engineering, Architecture, Construction and Real Estate Summit dubbed (ACEACRES, 2025) come September 29, 20205 and September 30, 2025, at De Icon Conference Centre, East Legon, Accra. This 3rd edition comes under the theme, Revolutionizing the Built Environment for Sustainable Infrastructure Development Through the use of Disruptive Innovations, Big Data and Quantum Technologies. The objective is to bring together industry experts, innovators, investors, thought leaders, and top business executives from various sectors of the built environment across the African continent (Nigeria, South Africa, Rwanda, Uganda, Ethiopia, Algeria, Egypt etc), to share knowledge, showcase cutting-edge innovations, technologies and to brainstorm on how the African continent can catch up with modern trends using disruptive innovations, big data and quantum technologies. The choice of this year’s theme is partly influenced by the United Nation’s universal declaration of the year 2025 as the International Year of Quantum Science and Technologies, launched at its UNESCO Headquarters in Paris, February 4, 2025. Objective of the Summit The core objective of ACEACRES is to build an integrated African built environment to create opportunity for knowledge sharing, technology transfer, capacity building for socio-economic transformation of the continent through high-end business networking, partnerships and collaborations. This premier event serves as a strategic platform for industry leaders, architects, engineers, surveyors, planners, developers, legal practitioners, SMEs, policymakers, project managers, investors etc to collaborate on shared mission to transform Africa’s physical and economic landscape through sustainable development, inclusive growth, and impactful public-private partnerships. Who to Attend As it has always been our target, ACEACRES is designed to bring under one roof, all stakeholders of the built environment: the building contractors, road contractors, engineers (civil, electrical, electronic, mechanical, structural, safety, mining, environmental, chemical, geotechnical, geodetic, materials etc), surveyors, planners, architects, project managers, real estate developers, builders. Landscape professionals/contractors, real estate professionals, home buyers, building and construction material suppliers, equipment/machinery suppliers, glaziers, fabricators, interior deco companies/professionals, roofing companies/technicians, transport & logistics companies, facility management professionals/institutions, innovators, technologists, financial and insurance institutions, investors, government agencies, regulators, IoT experts, construction legal consultants, artificial intelligence professionals, sustainability consultants, artisans et cetera. Key and Guest Speakers The event shall host two (2) guest speakers including the keynote speaker, with Dr. Daniel McKorley, Executive Chairman, McDan Group of Companies, Ghana and Mr. Tony O. Elumelu, Executive Chairman, Heirs Holdings and UBA Bank Group, Nigeria serving as the guest speakers, whilst Ing. Prof. Elsie Effah Kaufmann, Dean, School of Engineering Sciences, University of Ghana speaking as the keynote speaker. In all, a total of about 40 industry thought leaders across the African Continent will be speaking at this all-important Summit. African Sub-regional and International Participant’s Confirmations High-profile participants from across Africa and international participants from Canada, Australia, United States of America, South America, United Kingdom, Germany et cetera. An estimated number of about 800 in-person participants are expected with confirmations already received from these African sub-regional states namely, Nigeria, Rwanda, Kenya, Uganda, South Africa, Egypt, Liberia, Sierra Leon and Morocco. Benefits to be Derived by Exhibitors and Participants Exhibitors and participants alike will have the opportunity to leverage on this common regional platform for all stakeholders of the African built environment to gain industry insights, network and build collaborations aimed at maximizing the continent’s prosperity at large. Sponsors For sponsors or exhibitors, B2B, B2C networking opportunities, connecting with manufacturers, distributors, wholesalers, retailers as well as end consumers, access to attendees for data for future leads generation, meet potential investors, enhance brand visibility and credibility, real time lead generation, gain industry insights eg dynamics and modern trends, identification of new business opportunities, opportunity for joint ventures. Opportunity to close B2B contracts, seal partnership deals, boost brand development, maximize sales, share product knowledge and utility information with potential customers, demonstrate unique selling proposition to potential customers, build strong network with influential industry players, get in contact with the diaspora community and opportunity to get connected by organizers to top-rated projects/contractors/professionals in Ghana and across the African continent. Participants Networking opportunities with industry leaders, access to cutting edge insights and new trends, learning from successful case studies, building personal capacity for professional resilience, exposure to new business opportunities, gaining inspiration and motivation from industry thought leaders, building relationship with potential employers/employees and mentors, access to innovative products. Meeting with potential investors, opportunity to share your perspective during Q&A time, identify lucrative business niches in the industry et cetera. In addition, participants will gain industry insights eg dynamics and modern trends, industry/academia engagements aimed at reaching a consensus on skills training, meet regulators to proffer regulatory solutions, meet the CEO of the Africa Continental Engineering & Construction Network and team for specific industry information and opportunities, et cetera. Achievements of previous Editions The 2023 and 2024 editions recorded close to a thousand (1000) participants combined and in a couple of two (2) years down the line, the Summit has been able to refer, recommend or connect a little over three hundred (300) combined; exhibitors, construction companies, professionals, contractors, building material/equipment suppliers real estate developers etc to top building projects, contracts and jobs in Ghana and across the African continent. This figure excludes businesses, projects, contracts or jobs individuals got through personal networking at the Summit. ACEACRS is by far the singular and most impactful built environment Summit in Africa. Among the participants recorded for the 2024 edition particular, a little over five hundred (500) in-person participants from Nigeria, Uganda and the United States of America (USA), with majority from the host country Ghana. Some of the high profile in-person participants from the African Continent were the keynote speaker Madam Engr. Margaret Aina Oguntala, FNSE, President, Nigerian Society of Engineers (NSE), Engr. Olu Ogunduyile FNSE Vice President, Council for the Regulation of Engineering in Nigeria (COREN), Engr Dr. Mudasiru Bola J. (Principal Partner, Prolarank
20Apr’25
REAL ESTATE INVESTMENT OPPORTUNITIES IN AFRICA: A SYSTEMATIC DATA-DRIVENANALYSIS OF THE CONTINENT-PART-1
REAL ESTATE INVESTMENT OPPORTUNITIES IN AFRICA: A SYSTEMATIC DATA-DRIVEN ANALYSIS OF THE CONTINENT-PART-1 Published: March 2025 Author: Daniel Kontie Category: Real Estate Real estate investment in Ghana has become an increasingly attractive option for investors looking to diversify their portfolios and tap into the country’s promising real estate industry, the country with a stable political environment, a young and rapidly urbanizing population, and rising incomes, Ghana’s real estate sector presents exciting opportunities in all categories of real estate, the residential, commercial, and industrial properties. This is a series brought to you by the Africa Continental Engineering & Construction Network Ltd, a Pan African built environment firm based in Ghana but with a wide range of projects and network of built environment professionals across the continent. The objective is to provide a systematic exposition on the real estate investment opportunities in Africa. Today’s article is part one (1) and we shall be examining five (5) fundamental factors (indices) that positions Ghana strategically, as the most preferred destination for real estate investment in Africa. The Ghanaian political environment, rate of urbanization, middle class growth, Ghana as the African hub for tertiary education and most importantly, Ghana’s housing deficit. Purpose The purpose is to help potential investors make informed decisions in the event they so wish to venture into the African real estate market, for that matter the Ghanaian market. Now, take a seat, grab a glass of chilled drinks and come along with us as we run you down a data driven analysis on the prospects of real estate investment in Ghana. 1.Ghana’s Political Environment First and foremost is the Ghanaian political eenvironment, since the adoption of the 1992 constitution, Ghana have enjoyed political stability and have become a global center of attraction and a case study for many African nations and beyond. It is therefore not by chance that the Global Peace Index (2022) ranked Ghana as the 2nd most peaceful country in Sub-Saharan Africa among 46 others, top six (6) most peaceful countries in Africa and the 40th most peaceful country in the world out of 163. This guarantees security at all levels and gives confidence to the investor community that every dollar worth of investment within the shores of Ghana is secured regardless of which political party is in government. The supremacy of the constitution and the rule of law ensured the checks and balances among the arms of government. The Police Service, the Army, the National Security and all other state institutions mandated to keep democratic balance and political stability have always worked in synchrony, thereby placing Ghana ahead of its peers in Africa to emerge as the most preferred African state for both local and foreign direct investment, of which real estate investment is not an exception. Ghana’s Housing Deficit In addition to the stable political environment, the Ghana Housing Deficit presents a profound real estate investment opportunity. According to the Ghana Statistical Service (2022), Ghana’s housing deficit stood at a staggering rate of 1.8 million. This has made the provision of more affordable housing options for urban dwellers a big challenge for the Ghanaian government. State Intervention The state has over the years undertaken a few housing projects and policy interventions in attempt to bridge the gap, however, this was quite unsuccessful as the deficit continue to grow with time. Efforts have been made by private individuals which contributes but little to closing the gap, leaving the few private institutional developers a huge housing supply gap to meet. Private Developer’s Input GREDA (Ghana Real Estate Developers Association) appears to be the only beacon of hope if the housing supply will ever meet the demand. But for potential investors to appreciate where the investment jackpot lies within the property supply landscape in Ghana, we would like to run you through a brief but empirical analysis. Property Development Mix There are currently about one hundred and forty (140) private real estate developers in good standing in Ghana according to GREDA real estate journal (2023). The 140 have various specialties within the sector, that is to say it is not all of them that are into residential property development. Analysis However, for the purpose of this analysis, we shall assume that all of them develop residential properties. What this implies essentially is that, each developer will have to develop approximately thirteen thousand (13,000) housing units, though not feasible, within the year to be able to bridge the 1.8million gap. This shows how huge the real estate investment opportunity is, in Ghana that cannot be compared to any other destination in Africa. Increasing Urbanization Rate Moreover, another index worth mentioning is Ghana’s increasing rate of urbanization, according to Urban Land Institute, London (2018), urbanization leads to high demand for housing in urban centers thereby putting pressure on residential properties and consequentially leading to high rates of rent in the urban centers across the world. It was against this backdrop that we decided to explore the rate of urbanization in Ghana and its impact on real estate investment opportunities. Ghana’s increasing rate of urbanization is another index that gives prospects to real estate investment particularly in Ghana’s urban centers across the country. A recent observation made by our outfit, the Africa Continental Engineering & Construction Network (ACECN) on some selected African countries points to the fact that Ghana has the highest rate of urbanization, (ACECN, 2024). This again positions Ghana as the most preferred destination for real estate investment in Africa. The figure below is the graphical representation of the rates of urbanization with Ghana topping the list with 58.62% in 2022. Growing Middle Class Also, the ever-growing middle class is another crucial index worth considering, Africa is developing faster than it was in the 20th century, it is therefore not a surprise to see many economic indicators assuming positive resilience across the African continent. Figure 1. ACECN (2024), Data Source (Statista 2022) Ghana have had its share of this rapid development over the years. In 2013, the African Development
20Apr’25
REAL ESTATE INVESTMENT OPPORTUNITIES IN AFRICA: A SYSTEMATIC DATA-DRIVEN OF THE CONTINENT-PART-2
REAL ESTATE INVESTMENT OPPORTUNITIES IN AFRICA: A SYSTEMATIC DATA-DRIVEN OF THE CONTINENT-PART-2 Published: March 2025 Author: Daniel Kontie Category: Real Estate Last week we published part one (1) of this series and we are indeed thrilled with the positive feedback that came from our readers across the globe. It will interest you to know that over one hundred (100) people read the article within the first week of its publication according to our reading tracker. This is good news and an encouragement for us to work harder in disseminating the information on the prospects of real estate investment in Africa to all prospective investors across the world. This article is the professional work and intellectual property of the Africa Continental Engineering & Construction Network Ltd, a Pan African Built Environment Firm based in Ghana but with a wide range of projects and network of Built Environment Professionals across Africa. In this second edition, we shall be examining the last three (3) indices which again like the first edition is, a comparative data-driven analysis that points to the fact that Ghana remains the most lucrative real estate investment destination in Africa. But before we go into the intricacies of the data, we would like to have a recap of the first edition for the benefit of readers who may not have the opportunity to read the first edition. In the previous edition, we examined five (5) fundamental indices, and the data available for all five points to the fact that Ghana stood tall among its peers as the most lucrative real estate investment destination in Africa. We looked at the current housing deficit which stood at 1.8 million and is projected to hit 4.2 million by 2030 if there are no conscious actions to bridge the gap as against the projected population growth of 39 million by same year, that is one side, and the other is the low supply side where it was observed that, the combined effect of the works of the state, individuals as well as the private institutional developers, was not significant enough to still bridge the gap. We also examined the Ghanaian political environment, known to be one of the most democratic and peaceful across the globe with the Global Peace Index (2022) ranking as the 2nd most peaceful country in sub-Saharan Africa among 46 countries, top six (6) most peaceful countries in Africa and 40th most peaceful country in the world. This presents a positive signal while guaranteeing the security of investments at all levels in Ghana including real estate. Urbanization was another index we examined, and it was found that among the thirty-three (33) African states purposively selected for our analysis, Ghana tops the urbanization rate with a staggering rate of 58.62%. This we presume could be a significant contributory factor to the persistently high demand for housing and general infrastructure around the urban centers across the country thereby, increasing the real estate investment prospects. The growing middle class which was found to be rising speedily hitting a height of about 46% as was reported by the African Development Bank in 2013, has also impacted the real estate investment prospects of Ghana significantly, despite the gains that have been eroded by the Covid-19 pandemic in recent past and finally, we also examined the rapid population growth which is said to have stood at 35 million currently and is projected to reach 39 million by 2030. In a nutshell, all the aforementioned indices explored are real estate demand-driven factors, and interestingly, all point to the fact that Ghana remains the most preferred destination for real estate investment in Africa. Today, we shall be looking at the last three (3) indices and this will draw the curtains on the subject under discussion. Now, stay tuned, get a glass of fruit juice, and grab your reading lenses as we run you down yet another data-driven analysis of the real estate investment prospects in Africa using the final three (3) indices, crime rate, foreign direct investment and government policy. To begin with, economic theory suggests that, crime rate has an inverse relationship with investment, particularly foreign direct investment, and what this means essentially is that, a higher crime rate threatens both human and property security. This security threat leads to low foreign direct investment, holding other variables constant. On the other hand, low crime rates boost investor confidence, and the higher the level of investment, the bigger the expansionary growth of the economy. The ripple effect most often under such circumstances, is higher demand for housing as it is the case in Ghana currently. During our analysis of global crime ranking, Ghana ranked 84 with a crime index of 43.9 among 146 countries according to Numbeo (2024), and 17 in Africa among 52 states (Africa Organized Crime Index, 2024). The crime index of 43.9 is classified as moderate according to the Numbeo scale of measurement which grades crime levels between 41 to 60 as moderate. This gives confidence to the general investor community that, Ghana is comparatively one of the most conducive destinations to invest, of which real estate investment is not an exception. Also, sight is not lost on the fact that foreign direct investment (FDI) is another driver of investment globally. Just like all other sectors of the economy, foreign direct investment has a direct relationship with demand for real estate. Interestingly, our exploration found that Ghana is among the top ten (10) countries in Africa with high levels of foreign direct investment with a total FDI value of US$1.5 billion according to Business Insider Africa (2023). Below is a diagram that depicts the top ten (10) African countries with the highest foreign direct investment. Naturally, one would have expected that Zambia, Egypt, South Africa etc would have been projected as the most promising real estate investment destinations in this analysis, taking into consideration their volumes of FDI compared to others such as Ghana. However, the broader scope of analysis taking into cognizance the
19Apr’25
REGULATING THE REAL ESTATE AGENCY SECTOR IN GHANA: IMPLICATIONS: IMPLICATIONS FOR AGENTS AND BROKERS
REGULATING THE REAL ESTATE AGENCY SECTOR IN GHANA: IMPLICATIONS: IMPLICATIONS FOR AGENTS AND BROKERS Published: March 2025 Author: Daniel Kontie Category: Real Estate The real estate agency sector in Ghana has long operated in an unregulated and informal environment, leading to issues such as fraud, unprofessional conduct, lack of consumer protection, and market inefficiencies. Over the years, there have been multiple attempts to regulate the industry but the absence of a proper legal framework meant that anyone could act as a real estate agent without professional training, licensing or accountability. The Real Estate Agency Act, 2020 (Act 1047) marked a turning point in Ghana’s real estate agency sector, leading to the establishment of the Real Estate Agency Council (REAC), a state authority mandated to regulate real estate agency practice, ensure professionalism, and protect property buyers and sellers from fraudulent individuals. The purpose of this article is to examine the historical background of an unregulated real estate agency practice in Ghana, the coming into force of the law and the implications of the law on real estate agents and brokers. Characteristics of the Unregulated Real Estate Agency Market Before the passage of the Real Estate Agency Act, 2020 (Act 1047), the real estate agency profession in Ghana was completely unregulated. Unlike other professions such as law, medicine, or engineering, where practitioners must obtain licenses and adhere to industry standards, any individual could act as a real estate agent regardless of qualifications or expertise. This led to high incidence of fraud and scam transactions, lack of consumer protection and dispute resolution mechanisms, market inefficiencies, poor transparency, misrepresentation of property ownership, fake property listings targeted at scamming prospective buyers or tenants, illegal agency fees with no structured commission system etc, with many unsuspecting Ghanaians including those in the diaspora, fell victim to real estate scams, leading to loss of investments and distrust in the system. The Coming into Force of the Real Estate Agency Council (REAC) Recognizing these challenges, the Government of Ghana passed the Real Estate Agency Act, 2020 (Act 1047) to establish the Real Estate Agency Council (REAC), which officially began operations in 2022. The objective was to sanitize the system by weeding out the fraudulent practitioners and the general unprofessional conduct that characterized the real estate agency sector for decades. Object and Function of the Real Estate Agency Council (REAC) Pursuant to section (3) and (4) (a) to (r) of the real estate Agency Act, 2020, (Act 1047), the object and functions of the Council is to facilitate and regulate the real estate agency practice and the provision of real estate agency services”. The performance of these functions includes but not limited to regulating real estate agency practice by setting standards, licensing of agents and brokers, enforcing ethical conduct, protecting consumers from fraudsters, standardizing agency fees and commissions, maintaining a national database of real estate transactions whilst ensuring the sector is not used as conduit for money laundering. Implications of Act 1047 on Real Estate Agents and Brokers The coming into force of the Act, 2020 (Act 1047) puts a huge responsibility on the shoulders of real estate agents and brokers. It is the arrival of a new dawn that makes agents and brokers quite uncomfortable whilst protecting all parties to real estate transactions including all parties alike. By implication, it is therefore mandatory for all persons and institutions practicing real estate agency before the coming into force of Act, 2020 (Act 1047) to quickly formalize their operations to avoid potential damaging legal consequences. The question however is, how many real estate agents and brokers are familiar with the provisions of Act, 1047 relevant to the core business of real estate agency and their legal implications in the event of a breach of any. In the subsequent considerations of this article, we shall be examining some selected provisions of the law and their implications on the operations of real estate agents and brokers for today. We shall visit that of the implications of Act, 1047 on developers, property owners and investors in subsequent articles. Implications of Section 22 of Act 1047 on Real Estate Agents and Brokers Pursuant to section (22) of Act 1047 “a person shall not (a) provide real estate agency services (b) provide services as a real estate broker or real estate agent (c) engage in any business connected with the provision of real estate agency services or (d) engage in a real estate transaction if that person is not a licensed real estate broker or a licensed real estate agent under this Act”. The law mandates that all individuals and companies engaging in real estate agency services to be licensed by the Real Estate Agency Council. What this means is that, all persons and institutions practicing real estate agency whether now or before the coming into force of Act, 1047 or persons and institutions showing interest in real estate agency practice must all be licensed under this Act, failure to do so amounts to an illegality that may subject one to the full rigors of the law. The purpose is to ensure that only qualified professionals operate in the industry, adhere to a code of conduct to protect clients and ensure transaction transparency etc. Implications of Section (30) of Act 1047 on Real Estate Agents and Brokers With reference to section (30) and (31), the law spelt out the conditions under which the agency license of an agent or a broker can be suspended or revoked whilst section (30) (1) mandates that, “the Council may suspend the license of a real estate broker or a real estate agent, where the Council determines that the real estate broker or real estate agent, in the performance of a function authorized by the license (a) fails to use the real estate forms required for the real estate transaction (b) accepts cash in payment for the real estate transaction (c) fails within a reasonable time which shall not exceed one month to payout moneys received, into
17Apr’25
WHAT THE 2025 BUDGET STATEMENT AND ECONOMIC POLICY COULD MEAN TO THE GHANAIAN CONSTRUCTION INDUSTRY: EXPLORING THE THREATS AND OPPORTUNITIES
WHAT THE 2025 BUDGET STATEMENT AND ECONOMIC POLICY COULD MEAN TO THE GHANAIAN CONSTRUCTION INDUSTRY: EXPLORING THE THREATS AND OPPORTUNITIES Published: March 2025 Author: Daniel Kontie Category: Real Estate There is this phenomenon I have studied over the years, the little or no importance stakeholders of the construction industry attach to the budget statement and economic policy of various governments. Unlike the general business community that takes keen interest in budget statements, our construction industry does not. To us, everything is about technical knowledge. We fail to appreciate the fact that it is not just enough to have the technical know-how but one has to be business-minded enough to be able to convert this technical know-how into physical cash. This reminds me of an article I read a couple of days ago where the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI) Mr. Mark Badu-Aboagye is reported on record to have commented on the 2025 Budget Statement and Economic Policy of the government with particular reference on the impact of the current VAT system which in his opinion has negative implications on the smooth operations and profitability of businesses. This he told the Accra Street Journal on March 13, 2025. The question I asked myself after reading the article was, what has been the position of the Ghana Construction Industry on the 2025 Budget Statement and Economy Policy of government until now. But anyway, let me leave this as a rhetorical question, less I incur the displeasure of others even though it is a legitimate question. This has always been the posture of the industry over the years, but the world has revolutionized, it is no longer enough to have a profession but how to convert your professional practice into a brand that can cross national boarders and transcend generations. It is for this reason that I have taken this upon myself to set the pace by this article to digest what the 2025 Budget Statement and Economic Policy could mean to the construction industry in Ghana. It is my prayer that having blazed this trail, the industry will begin to take keen interest in Budget Statements going forward whilst devising plans and strategies in lobbying with various governments before during and after the reading of national budgets. This will make the economic policy makers understand the dynamics of our industry better so that decision making will always align with the fundamentals to serve specific needs of our industry. Our focus will be on the budgetary provisions that relates to the construction industry and their implications on the functioning and operations of the industry. One thing we should bear in mind is that whether we like it or not, every budget has provisions that impact our sector in one way of the other. Therefore, our information about the budget and the subsequent use of what is provided for us is key to the overall success of the sector and by extension, the nation. Stalled Projects First and foremost, according to section (74) (75) and (76) of the 2025 Budget Statement and Economic Policy, there is a staggering number of 55 stalled projects over the past eight (8) years. This has left a whopping sum of about USD$3 billion in undisbursed loans and about US$300 million in outstanding interim payment certificates (IPCs). The statement went further to list a few of these stalled projects among which were the; Effia Nkwanta Regional Hospital, Kejetia Market Phase 2, Bolgatanga-Bawku Pulimakom road project and Tema-Aflao road project etc. Furthermore, section (92) also stated the outstanding cocoa road contracts reaching a tune GH¢21 billion. What does this mean to the construction industry? Should we celebrate because it has been captured in the budget to be taken care of. Many of these contractors have already demobilized from their various sites. A classic example is the reportage that showed a contractor demobilizing from the Takoradi Interchange project in the roundup to the December polls in 2024. We all know that demobilizing is a significant cost, now these contractors are going to remobilize which is another significant cost. This will automatically affect the profit margins of these contractors. Apart from this, the delay in payment to these contractors is a significant loss considering the time value of money even interest may be applied. Besides, the Finance Minister was also very clear in his statement that it will take 12 years from now to complete these projects considering the IMF’s conditionality which imposes an annual disbursement ceiling of USD$250million for official bilateral loans. This has always been the case with the construction industry, the delayed payments to contractors has been the biggest challenge local contractors face with all governments of the day. It is about time we adopt proactive ways of dealing with governments to mitigate these delayed payments that have always rendered the industry seriously incapacitated. Apart from the damage that has been caused already as a result of the stalled projects, it is great news to see government’s commitment to resume these projects. It is going to stimulate industry growth with a trickling down effect on the supply chain. This will stimulate demand for labor, materials, equipment etc. The question is, are sector players really aware of this and taking conscious steps in preparation for this?. Maybe as usual, we wait patiently to be taken by surprise before we begin to complain as it has always been the case with us. This is because there is no sign of enthusiasm whatsoever about the rejuvenation of these projects neither is there any sign of preparation for it either. Road Tolls and Its Impact Section (160) and (161) of the 2025 Budget Statement and Economy Policy stated that “while the annual average collections from road tolls have not been significant compared to its potential, the existing zero-rate policy for road tolls has exacerbated the situation and dimmed any prospects of raising enough revenue from tolls for road construction and maintenance. “Accordingly, government
17Apr’25
EXPLORING THE IMPACT OF STRATEGIC SOURCING OF LOCAL BUILDING MATERIALS: A NECESSARY CONDITION TO REDUCING HOUSING AND CONSTRUCTION COST
EXPLORING THE IMPACT OF STRATEGIC SOURCING OF LOCAL BUILDING MATERIALS: A NECESSARY CONDITION TO REDUCING HOUSING AND CONSTRUCTION COST Published: April 2025 Author: Daniel Kontie Category: Real Estate Will the affordable housing dream ever going to materialize in Ghana where several attempts to build affordable housing units for the citizenry have failed for several decades?. The evidence is as glaring as we keep recording huge housing and infrastructure deficits at every population census since independence. The Ghana Population and Housing Census 2021 reported a housing deficit of about 1.8 million. The ripple-effect is what we see today, the dramatic increase in slum communities, unapproved settlements, and substandard residential structures across major cities in Ghana, particularly Accra. The state tried to change the trajectory and so did the private sector to bridge this ever-widening deficit, but all proved futile. The good news however is that, the Africa Continental Engineering & Construction Network Ltd has developed a model of building residential properties relatively cheaper enough to put shelter over the heads of the average low-income earner in Ghana. One of these models is the use of Compressed Stabilized Earth Blocks (CSEB). The blocks by design are interlocking in nature eliminating the use of mortar joints in the construction process. This saves cost on the labor, sand, cement and water required for mortar works. The walls does not require plastering and painting, also eliminating the cost of labor, sand, cement, paint and water. The blocks are made on project site most often; this also eliminates transportation cost compared to the situation in traditional concrete blocks where blocks have to be transported from factory to site. Even in regular non-storey residential housing, columns may not be needed depending on the situation, expertise and experience of the interlocking building professional. This also eliminates the labor cost, steel reinforcement and in-situ concrete for column works etc and even in the event where it is necessary to use reinforcement, there is an alternative to steel bars, the fiber glass (polymer) bars that cut your reinforcement expenditure by 40%. Apart from the aforementioned cost-saving benefits of the interlocking Compressed Stabilized Earth Blocks, they also have technical properties that make them the ultimate choice by all permutations. First and foremost, the buildings are earthquake resistant by virtue of the interlocking property of the blocks, this interlocking mechanism helps in distributing seismic forces evenly throughout the structure. The other earthquake-resistant properties worth mentioning are its high density, high flexural strength and low void ratio. Last but not least, CSEBs are fire-resistant by virtue of their low thermal conductivity which slows transfer of heat and reduces the risk of fire damage in the event of fire outbreak. Remember the technology is not the conventional clayed-fired bricks that have been in the system all this while. It is a ratio of cement, clay or laterite in some cases, giving us a block with an average compressive strength of 8Mpa. The color of the block can be kept consciously by a selective choice of the clay or laterite or a mixture of the two. The building maintains an environmentally friendly temperature that there will be no need to spend so much on cooling systems. Alternatively, one can clad this structure with natural stone (décor marbles) to give it that luxurious taste and aesthetics. The interior can be plastered depending on the taste and preferences of the individual or better still, joints can be sealed and walls polished with a special varnish cheaper than plastering and painting. Ceiling works can be processed, treated or polish wood which is a local content input and environmentally friendly as well. Roofing can be locally made clay roof tiles common in the market, and the floor can be a terrazzo pavement etc. The reality is that, you end up having a complete house with sound and superior structural integrity, eco-friendly and much cheaper compared to the conventional concrete house. Now is the time for us, as Ghanaians and Africans at large, to embrace these models to build that enviable motherland of Ghana for ourselves and posterity. By this publication, we are therefore calling on all stakeholders in the building, construction and real estate industry, all sovereign African nations, regulatory bodies, civil society organizations, international bodies, non-governmental organizations, etc to rally behind this clarion call by patronizing these innovations and also spread the good news across the length and breadth of Ghana and Africa. We are also appealing to the World Bank, International Finance Corporation (IFC) through the EDGE initiative, ECOWAS, African Union, the African Continental Free Trade Area Secretariat (AfCFTA), the African Development Bank for partnerships and investment in this regard, so that the Africa Continental Engineering & Construction Network and other stakeholders can develop these low-cost residential housing units to put shelter over the heads of the homeless majority of Ghanaians and by extension the African people. On the contrary in concluding, let me be quick to draw the attention of readers to an error in thinking that, using locally sourced building materials will always lead to a reduced construction cost. Achieving low development cost depends to a large extent on the expertise and experience of the developer in question using these locally made building materials and this is where the expertise of the Africa Continental Engineering & Construction Network Ltd comes to bare. Sourcing locally made building materials can sometimes be very expensive compared to using imported products. First, many of these materials are produced manually; this leads to poor finishing, product defects and sometimes substandard. The implication in the long run is high maintenance cost of the buildings. Also, the inability to mechanize and automate production of these materials, we are unable to enjoy economy of scale. This makes production cost high which is transferred to the end user of the product. Apart from this, Ghana lacks robust transportation infrastructure coupled with poor maintenance culture, leading to high transportation cost of goods and services of which local building materials are no
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