Thought of starting a project but were deterred by the high project costs? Now is the time to revisit the project as the cedi’s recent favourable momentum is translating into massive gains in the construction sector.
The construction industry has begun responding favourably to the cedi’s recent form, according to Prof. Gabriel Nani at the Department of Construction at the Kwame Nkrumah University of Science and Technology (KNUST).
Speaking at the 16th Annual General Meeting of the Association of Building and Civil Engineering Contractors of Ghana (ABCECG), the construction expert indicated that at a time when Ghana’s construction industry is struggling under the weight of delayed payments, inflated material costs, and regulatory bottlenecks, a glimmer of hope has emerged, thanks to the appreciating Ghana cedi.
He is therefore calling on contractors to embrace this turning point with renewed strategy and purpose to fully benefit from the development.
A Window of Relief: Falling Costs and Rising Optimism
According to Prof. Nani, the recent stabilization and appreciation of the cedi have brought “much-needed relief” to the construction sector, especially for firms heavily reliant on imported materials.
He notes that the prices of imported construction materials are significantly declining to the advantage of the industry.
“This shift has the potential to lower project costs, improve contractor margins, and encourage investment in capital projects,” he emphasized to a room full of industry stakeholders in Accra.
Experts have explained that the cedi’s newfound strength, driven by prudent fiscal measures and foreign inflows, is already reversing the inflationary pressures that have plagued project estimates and material procurement over the last three years. Contractors who previously faced a 20%–30 % markup on steel, cement, and mechanical fittings due to forex volatility are now seeing those prices stabilize, or even decline.
Improving Profit Margins
Prof. Nani further explained that in an industry where profit margins are often eroded by delayed payments and ever-rising cost of inputs, the drop in project inputs due to the cedi’s recent appreciation presents a rare opportunity to regain profitability.
He calls on contractors to reposition themselves, innovate, and strategically plan to take full advantage of the development to enhance their profitability.
“Contractors must strategically plan procurement, optimize project financing, and leverage exchange rate advantages to secure financial sustainability,” Prof. Nani advised.
Rethinking Cost Versus Value
Even as materials become more affordable, Prof. Nani warned contractors against cutting corners to maximize short-term gains.
“Does lower cost always mean better development?” he asked. “Quality infrastructure demands adequate investment.” He urged the sector to balance affordability with durability, especially in delivering roads, schools, housing, and hospitals that serve critical public needs.
This moment, he emphasized, is not just about cheaper construction. He says it’s about smarter construction. From leveraging modern tools and Building Information Modeling (BIM) to adopting sustainable materials, the cedi’s appreciation must be seen as an enabler of transformation, not just a cost-saving buffer.
Government Collaboration and the Big Push
The Ghanaian government’s 2025 “Big Push Infrastructure Programme” allocates over GHS13.85 billion to drive public works and infrastructure development. Prof. Nani pointed out that with approximately 1,000 contractors in the ABCECG, each member must handle projects worth up to GHS7 billion to meet national targets.
The cedi’s appreciation, he argued, makes this goal more attainable, provided contractors are well-prepared and collaborative.
He emphasized stronger partnerships with regulatory institutions like the Public Procurement Authority, GRA, and SSNIT, noting that the public sector’s own budgeting and procurement practices must also reflect the currency gains to ensure timely disbursements and equitable project awards.
A Call to Reset
The 16th AGM of ABCECG was under the theme, “Resetting the Construction Industry: The Way Forward.” For Prof. Nani, the cedi’s recovery is not just an economic indicator; it’s a springboard for contractors to move the sector into new heights that benefit themselves and the country at large.
He concluded that the reset is not merely about adapting to new trends. He declared, “It’s about leading with vision.” Ghana’s construction industry, he concluded, must now transform optimism into opportunity, leveraging the tailwinds of a stronger currency to deliver impactful, timely, and high-quality infrastructure for generations to come.
