The Ghana Chamber of Construction Industry (GhCCI) has described government’s flagship “Big Push” infrastructure programme as a game changer for the sector, citing renewed confidence among local contractors, while warning that persistent payment delays continue to undermine progress.
Speaking at a presentation ceremony where Justmoh Construction Limited was adjudged Overall Best Construction Company for 2024/2025, Chief Executive Officer of GhCCI, Emmanuel Cherry, said recent reforms have significantly improved the operating environment for indigenous firms.
“Previously, local contractors were treated as secondary players by banks, insurers and suppliers,” Mr Cherry noted. “Today, the narrative has changed. Financial institutions and partners are now actively engaging us, largely due to confidence created by the government’s Big Push policy.”
He attributed the turnaround to reduced bureaucratic bottlenecks and improved procurement structures, which have strengthened the position of Ghanaian contractors after years of marginalisation.
Despite the optimism, Mr Cherry cautioned that lingering legacy debts owed to contractors remain a significant burden on the industry. He disclosed that government has so far paid about GH¢12 billion out of an estimated GH¢44 billion inherited liabilities.
“While we acknowledge the effort, the amount settled represents only a fraction of the total debt,” he said. “A substantial portion remains outstanding, and clearing it will be critical to restoring full operational capacity within the sector.”
Mr Cherry explained that delayed payments continue to distort contractor performance and relationships with financial institutions.
“In many cases, mobilisation funds released by government are immediately absorbed by banks to offset existing loans,” he said. “This creates the impression that contractors are underperforming, when in reality they are constrained by debt recovery mechanisms.”
On discussions about awarding contracts to the military, Mr Cherry clarified that such proposals remain preliminary and should not be misinterpreted.
“Projects such as the Expressway are still at feasibility level and have not been awarded,” he stated. “The military has expertise in certain technical areas, but there is no indication yet that they will replace civilian contractors.”
He suggested that any military involvement would likely be limited to specialised functions such as right-of-way clearing rather than full-scale project execution.
The Chamber also raised concerns over persistent flooding in urban areas, blaming the situation on weak enforcement of regulations, poor planning and logistical constraints within local government authorities.
According to GhCCI, widespread indiscipline—particularly illegal construction in waterways—has worsened the problem. However, officials emphasised that Metropolitan, Municipal and District Assemblies (MMDAs) are often ill-equipped to monitor developments effectively.
“Many assemblies lack the logistics, funding and professional staff needed to enforce building regulations,” the Chamber noted. “Even basic inspections are difficult due to lack of vehicles and equipment, leading to compromised processes in issuing permits.”
The Chamber called for urgent government intervention to retool MMDAs, warning that failure to act will perpetuate flooding and urban inefficiencies.
Industry players also noted that recent macroeconomic improvements have had a positive effect on construction activity. Stabilisation of the cedi, easing inflation and relatively lower lending rates have improved business conditions across the sector.
However, they cautioned that a reduction in material costs may not immediately translate into lower housing prices.
“Construction pricing reflects historical input costs,” an industry representative explained. “If a developer purchased materials at higher prices, reductions in the market later will not automatically lead to cheaper housing.”
Nonetheless, stakeholders expressed optimism that sustained macroeconomic stability will gradually ease pressure on property prices over time.
On government’s intention to terminate contracts awarded to underperforming contractors, the Chamber urged a more balanced approach. While acknowledging that some contractors may be under-delivering, officials stressed that structural challenges—particularly delayed payments—must be considered.
“Performance issues cannot be assessed in isolation,” the Chamber cautioned. “Many contractors are operating under financial strain due to unpaid certificates and legacy debts.”
At the ceremony, Justmoh Construction Limited was honoured for its contribution to Ghana’s infrastructure development. The wholly Ghanaian-owned company, established in 1991, has undertaken major projects including the Boankra Inland Port, as well as numerous road, bridge and drainage works.
Receiving the award, Chief Executive Officer of Justmoh, Justice Amoh, expressed appreciation and reaffirmed the company’s commitment to national development.
“This recognition is both an honour and a challenge,” Mr Amoh said. “We are motivated to do even more in supporting Ghana’s infrastructure growth.”
He credited the company’s performance to effective planning, timely mobilisation of resources and strategic scheduling of work around seasonal conditions.
Also addressing the gathering, Chairman of GhCCI, Nana Ofori Kwafo I, called for stronger collaboration between government and contractors, particularly in ensuring timely payments and adequate resourcing of projects.
“Nation-building is a shared responsibility,” he said. “When contractors are properly supported, they can deliver world-class infrastructure that meets national expectations.”
He appealed directly to the President to prioritise prompt payments and sustained investment in the sector.
“As we have seen, when the right conditions are created, local contractors can compete and excel,” Nana Ofori Kwafo added.
Source: businesspostonline
