Fitch Solutions forecasts Ghana’s construction industry to grow by 4.1 per cent year–on year in 2022, a slowdown compared to the estimated growth of 5.7 percent year–on–year in 2021.
The rating agency notes that despite the market’s strong fundamentals including a track record of private energy investment, and infrastructure, comparatively high political stability and security, and a relatively diverse competitive landscape, it expects a substantial depreciative of the cedi against the U.S Dollars in 2022 will in the near terms, make private investors more reluctant to invest in Ghana’s infrastructures.
It further indicates that it does not expect that private investment will meaningfully cushion the negative impact of subdued public infrastructure spending on the market’s construction industry growth.
“We forecast that in 2022, the Ghana cedis will depreciate by 22.7 per cent against the USD significantly increasing revenue risks for the foreign investors that rely on expatriation of revenues.” It said.
