Ghana’s construction sector is poised for a robust rebound, with real growth projected at 7.6% in 2025, signaling a strong post-crisis recovery anchored by public infrastructure investment, urban expansion, and renewed investor confidence. This is according to the latest industry outlook by Fitch Solutions.
The bullish forecast follows a sharp 9.6% expansion in 2024, marking a dramatic turnaround for a sector that endured back-to-back contractions of 6.8% in 2022 and 11.2% in 2023, during Ghana’s peak economic turmoil.
Crisis to Comeback: Sectoral Shift Underway
Fitch attributes the recovery to improving macroeconomic conditions including moderating inflation and growing fiscal space for capital expenditure as well as surging demand for both residential and commercial infrastructure in key cities like Accra and Kumasi.
“The anticipated growth comes on the back of a strong 9.6% expansion in 2024, supported by a recovery in public infrastructure investment and a buoyant real estate market,” Fitch noted.
The sector’s contraction had coincided with Ghana’s 2022 sovereign default and the ensuing economic crisis, which saw the cedi plummet, inflation spiral, and foreign reserves dwindle. Investor sentiment dried up, especially in capital-intensive sectors like construction, as the government tightened spending under the US$3.0 billion IMF Extended Credit Facility (ECF) secured in May 2023.
Election-Year Spending Reignites Growth
In a pivotal policy shift, 2024 saw the government ramp up capital expenditure by 39.2% year-on-year, largely driven by pre-election infrastructure commitments. This, combined with a resilient property market fueled by urban migration, sparked a significant boost in construction activity.
Urbanisation remains a core engine for growth. Fitch projects Ghana’s urban population to grow by 2.7% annually over the next decade, rising from 59.8% in 2024 to 65.5% by 2034. This demographic shift is expected to sustain demand for housing, transport systems, and commercial developments.
Sustaining the Momentum
While fiscal pressures and the need for macroeconomic stability persist, Fitch maintains a broadly positive outlook. The sector’s recovery will hinge on effective policy execution, stable inflation, and sustained public investment aligned with Ghana’s medium-term development goals.
In Fitch’s view, “Ghana’s construction industry is on course for sustained recovery,” thanks to deepening urbanization, resurgent real estate demand, and a stronger policy environment. As long as reforms hold and investor confidence grows, the sector could become a bellwether for Ghana’s economic resilience in the years ahead.
