Ghana has kicked off construction of a US$30m cement factory that is being financed by Iran. Completion of the cement plant is set for 2019.
According to officials intimate with the project, Iran will be a major shareholder with 90 percent stake. Ghana on the other hand will have 10 percent of the project that is being built at the Dawa Industrial Enclave on the Tema-Aflao road.
Once complete,the factory is expected to produce some 600,000 tonnes of premium cement annually.
Ghana hopes that the new cement factory will help enhance the country’s infrastructural drive, create jobs and help make the price of cement competitive. The project is also expected to further cement the good relationship between Ghana and Iran.
With a number of public works projects currently in the pipeline – ranging from housing developments to port upgrades – Ghana is likely to see an uptick in spending on construction projects in the coming months.
However, the price of raw materials used in construction, such as cement and water are rising, along with an increase in electricity tariffs and labour costs.
According to Oxford Business Group,foreign direct investment in Ghana construction sector will increase in the second half of 2016 through to 2017.
The country is witnessing a surge in infrastructure development projects such as harbour expansion projects in Tema and Accra, and ongoing expansion work at Takoradi Harbour.
Growing year-on-year as a contributor to the economy, Ghana’s construction sector is increasingly dynamic and led by private sector participants.