Background Studies On Infrastructure Sector In Ghana
JUNE 2017Background Studies onInfrastructure SectorIn GhanaSubmitted by:Directorate of ResearchInnovation and ConsultancyUniversity of Cape CoastCape CoastTel: 03321-33172,024-44693747,020-3915027E-Mail: dric@ucc.edu.gh
Background Studies On Infrastructure Sector In GhanaSubmitted by:Directorate of Research, Innovation and ConsultancyUniversity of Cape CoastCape CoastTel: 03321-33172, 024-44693747, 024-4103776E-Mail:dric@ucc.edu.ghJUNE 2017
TABLE OF CONTENTSContentsPageLIST OF TABLESivLIST OF FIGURESvLIST OF ACRONYMSviACKNOWLEDGMENTSviiiEXECUTIVE SUMMARYix1SECTION 1: INTRODUCTION1.1 Background11.2 Objectives of the Study31.3 Research Questions4SECTION 2: METHODOLOGY52.1 Introduction52.2 Phase One: Preparation of Exploratory Work Plan andDesk Review5Work plan5Desk review62.3 Phase 2: Data Collection and Analysis6Data collection tools/protocol6Design of research instruments6Selection of key stakeholders6Recruitment and training of eld assistants6Reconnaissance survey to sector experts’ institutions6Data gathering (Stakeholders’ interviews and desk reviews)7Data analysis7SECTION 3: REVIEW OF POLICIES, STRATEGIES AND ESTABLISHSTATUTORY FUNDS83.1 National Housing Policies and Programmes83.2 National Employment Policy93.3 Labour-intensive Public Works Policy93.4 Local Content and Employment Creation123.5 Public-Private Partnership Strategies123.6 National Infrastructure Plan133.7 Ghana Road Fund13ii
3.8 Ghana Infrastructure Investment Fund153.9 Conclusion17SECTION 4: ANALYSIS OF EMPLOYMENT IN THEINFRASTRUCTURE SECTOR184.1 Introduction184.2 State of Employment in the Infrastructure Sector184.3 Socio-Demographic Characteristics of Employment in theConstruction Sub-sector204.4 The Concept of Decent Work23SECTION 5: INVESTMENT IN INFRASTRUCTURE395.1: Introduction395.2 Investment in Existing and On-going Infrastructure Projects395.3 Job Impact Analysis and Infrastructure Investments415.4 Allocation to the Infrastructure Sector for 2017425.5 Employment Generation Capability Challenges in theConstruction Sub-sector44SECTION 6: CASE STUDIES ON THE VARIOUS TYPES INFRASTRUCTUREPROJECTS456.1 Analysis of Selected Construction Firms in Ghana The Case of Tacoa Construction Company Limited45SECTION 7: CONCLUDING REMARKS47REFERENCES50APPENDICES52Appendix A: Interview Guides52INTERVIEW GUIDE FOR KEY INFORMANT FEBRUARY-MARCH, 201753INFRASTRUCTURE SECTOR IN GHANA52INTERVIEW GUIDE FOR FOCUS GROUP DISCUSSIONFEBRUARY-MARCH, 201752INFRASTRUCTURE SECTOR IN GHANA52Appendix B: Decent Work Scores in Construction54Appendix C: Distribution of Employment by Region and Sex55iii
LIST OF TABLESTable 1: Distribution of Employment by Region and Sex (Percentages)in the Construction Sub-sector.22Table 2: Skill Sets Pro les in the Construction Sub-sector.28Table 3: Skilled Labour Charge-out per day in Urban Ghana, March 2017.29Table 4: Distribution of Persons Engaged in Construction Sub-sector bySex and Region.30Table 5: Proportion of Persons Engaged in the Construction Sub-sectorby Formal Establishment.31Table 6 Distribution of Construction Establishments by Size andPersons Engaged.32Table 7: Number of Net Jobs Created by the Construction Sub-sectorby Skill and MSML.33Table 8: Number of Projects, Employment and Estimated Cost in theBuilding Construction Sub-sector.40Table 9: Infrastructure Projects and Level of Investment.41iv
LIST OF FIGURESFigure 1:Trends in Road Fund In ows (GHmillions, Nominal gures). 15Figure 2:Construction Sub-Sector Growth Rate, Share of IndustrialGDP and Share of Real GDP. 18Figure 3:Number of People Employed in the Construction Sub-sector. 19Figure 4:Rates of Employment in the Construction Sub-sector. 20Figure 5:Age Distribution of Workers in the Construction Sub-sector. 21Figure 6:Decent Work in Construction. 24Figure 7:Decent Work across Sectors. 25Figure 8:Distribution of Employment by Education and Sex. 26Figure 9:Distribution of Employment by Education and Location. 27Figure 10: Distribution of Jobs Created by Micro, Small, Mediumand Large Establishments. 33Figure 11: Distribution of Construction Firms by Region. 34Figure 12: Distribution of Employment by Full-time and TemporaryWorkers by Sex. 34Figure 13: Formal Training Programmes for Full-time Employeesin Construction. 35Figure 14: Real Average Monthly Earnings by Sex in Ghana Cedis (GH ). 36Figure 15: Poverty Status in the Construction Subsector by Location. 37Figure 16: GoG Infrastructure Sector Capital Expenditure Allocation, 2017. 43Figure 17: Infrastructure Investment from Development Partners (GH ). 44v
LIST OF ACRONYMSABCECGAssociation of Building and Civil Engineering Contractors of GhanaAGIAssociation of GhanaAICDAfrican Infrastructure Country DiagnosticAPRAnnual Performance ReviewBoGBank of GhanaDFRDepartment of Feeder RoadsDPsDevelopment PartnersDRICDirectorate of Research, Innovation and ConsultancyDURDepartment of Urban RoadsEUEuropean UnionFGDsFocus Group DiscussionsGDHSGhana Demographic and Health SurveyGDPGross Domestic ProductGHAGhana Highway AuthorityGHENTGhana Enterprise SurveyGHPGhana Housing Pro leGIIFGhana Infrastructure Investment FundGIPCGhana Investment Promotion Authority,GLSSGhana Living Standards SurveyGoGGovernment of GhanaGPRTUGhana Private Road Transport UnionGREDAGhana Real Estate Development AgencyGRFGhana Road FundGSGDAGhana Shared Growth and Development AgendaGSSGhana Statistical ServiceGYEEDAGhana Youth Employment and Entrepreneurial Development AgencyIBESIntegrated Business Enterprise SurveyICTInformation and Communication TechnologyIFFInfrastructure Finance FacilityIFSInstitute for Fiscal StudiesIGFInternally Generated FundILOInternational Labour OrganizationIMFInternational Monetary FundIPPIndependent Power ProducersKIIsKey Informant Interviewsvi
LiPWLabour-Intensive Public WorksMMDAsMetropolitan, Municipal and District AssembliesMoCMinistry of CommunicationMoELRMinistry of Employment and Labour RelationsMoFMinistry of FinanceMoRDMinistry of Railway DevelopmentMoTMinistry of TransportMOTIMinistry of Trade and IndustryMoWH Ministry of Works and HousingMRHMinistry of Roads and HighwaysMSMLMicro, Small, Medium and LargeMWRWHMinistry of Water Resources, Works and HousingNDCNational Democratic CongressNDPCNational Development Planning CommissionNEPNational Employment PolicyNIPNational Infrastructure PlanNPPNew Patriotic PartyNRGPNorthern Rural Growth ProjectNYEPNational Youth Employment ProgrammePDFProject Development FacilityPHCPopulation and Housing CensusPPPPublic-Private PartnershipPWDPublic Works DepartmentSMTDPRoad Sector Medium-Term Development PlanSPSSStatistical Package for Social SciencesSSNITSocial Security and National Insurance TrustSWOTStrength, Weaknesses, Opportunities and ThreatsToRTerms of ReferenceTUCTrades Union CongressUCCUniversity of Cape CoastUNUnited NationsUNESCOUnited Nations Educational, Scienti c and Cultural OrganizationYEAYouth Employment Agencyvii
ACKNOWLEDGMENTSWe acknowledge the contribution and support of all the industry stakeholders whoprovided information for this study and our partners, both local and international, whoprovided technical and nancial support. We express our deepest appreciation to theInternational Labour Organisation (ILO) for sponsoring this background study. We alsoacknowledge the efforts of all the authors (Mr. Kwabena Nkansah Darfor and Mr. BenedictAfful Jnr) in the implementation of this project. Our special thanks go to the Directorate ofResearch, Innovation and Consultancy (DRIC) of the University of Cape Coast (UCC) fortheir administrative role on the project.viii
EXECUTIVE SUMMARYThis background study is one of the projects under the International LabourOrganisation (ILO), European Union (EU) and Government of Ghana (GoG) partnership inimplementing the project "Strengthening the Impact of Sector and Trade Policies onEmployment" (STRENGTHEN). The primary purpose of the study is to provide a bettersense of the overall employment situation in the infrastructure sector.Literature from related studies were accessed through Internet searches, librarysearches and a review of available documents from state institutions. Datasets and reportsthat were nationally representative were used to tease out the employment dynamics in theinfrastructure sector. Some of the key ndings from the study are summarised as follows:The Government of Ghana has developed myriads of policies, strategies and fundswhich have worked as frameworks within which direct, indirect and induced jobs have beengenerated. Analyses of the initiatives show signi cant potentials to create moreemployment. They include:nLocal Content Policy is to ensure that over time, 70 per cent of all governmentprojects and procurements are to be undertaken by local contractors to enhance jobcreation through value addition and skills improvement.nLabour-intensive Public Works (LiPW) Policy has the potential to create moreemployment opportunities but without clear-cut strategies that satisfy the socialdialogue pillar of decent work.nNational Road Fund, the Ghana Infrastructural Investment Fund and the NationalInvestment Plan constitute sources of funds for the expansion of infrastructuraldevelopment to engender more employment.nThe National Housing Policies and Programmes provide a framework for indigenousownership of infrastructure projects to enhance employment generation.In addition to these policies, strategies and funds, a number of projects have beenembarked upon which have contributed to employment generation outcomes. Notable onesinclude the Takoradi 2 Thermal Plant, Azito Independent Power Producers (IPP) Plant, TemaPort Expansion Project and Teshie Nungua Sea Water Desalination Project - all of whichgenerated over 7,243 jobs. Between 1995 and 2016, a total of US 2,852.62 million had beeninvested in the construction sub-sector and generated 12,856 jobs.The analysis of the Population and Housing Census report indicates that theconstruction sub-sector experienced a drop in employment from 72,060 to 65,069 between1970 and 1984 due to the economic and political crisis. However, over the period of 40 years(1970-2010), there was an increase in employment in the construction sub-sector on theaverage.Further, the expansionary works in the infrastructure sector in the last three decadeshave accounted for a rise in the proportion of the workers in the construction sub-sector.Between 1987 and 2013, the proportion of employees in the construction sub-sector to thetotal labour force increased from 1.2 per cent in 1987 to 2.25 in 2013, even though theproportion had plunged to 0.95 per cent in 1991.The Ghana Living Standards Survey (GLSS) datasets show a persistent maledominance. The proportion of females in the construction sub-sector has experienced aix
decline. The datasets also reveal that majority of people engaged in the sub-sector are youth.To address the gender disparity in employment in the sub-sector, the implementationof the LiPW Policy, which seeks to ensure gender equity/balance in recruitment andremuneration in the construction sub-sector is likely to improve the proportion of femaleworkers in that sub-sector.To address the problem of the rising youth unemployment in the country at themoment, it is recommended that, by implementing the local content policy, LiPW policiesand other complementary policies, the construction sub-sector can serve as a conduit formore job opportunities for the unemployed youth. It is thus, instructive for much of publicand private investments to be devoted to the construction sub-sector to help in absorbing themasses of unemployed youth in the country.The phenomenon of decent work gained attention in the study. The data gatheredindicated high degrees of work vulnerability which cuts across both sexes. Throughout theperiods under consideration (1999-2013), workers in the construction sub-sector were foundto have endured working conditions below the ILO standards of decent work. Much of this isinextricably linked with the high levels of informality that characterises the constructionsub-sector and the fact that the majority of the workers are basic school leavers. Thissigni cantly low number of workers in the construction sub-sector without decent work hasthe potential of putting the sustainability and the future of work in jeopardy.The GLSS datasets have thus, brought to the fore the gradual increase in the number oftertiary graduates in the construction sub-sector due to the increasing degree of thedeployment of sophisticated technology in the infrastructure sector which require highlyquali ed skilled personnel.A key challenge faced in the course of conducting this study had to do with the scanty,scattered and inconsistent data on employment in the infrastructure sector. Most of the dataconsulted for the study were not in disaggregated form and thus, made it dif cult to tell theemployment generated in the various sub-sectors of the infrastructure sector. This explainswhy the consultants had to resort to analysis of employment generated by the constructionsub-sector as a whole. The consultant also had dif culty in accessing data from therespective institutions. This was in the form of reluctance on the part of some of the agenciesto release information to us on time. As at the time of presenting this report, some of them hadstill not responded to our request even after constant reminders.x
SECTION 1: INTRODUCTION1.1 BackgroundGhana's economy has been experiencing increasing growth over the last two decadeswith improvements in virtually every facet of the economy. The growth in the economy hasoccurred vis-à-vis reduction in poverty levels, which currently stands at 24.3 per cent, whichrepresents a drop of 4.2 percentage points over the previous rate (Ghana Statistical Service[GSS], 2015). In spite of these achievements, the economy is still bedevilled with shortfallsin both economic and social infrastructure, which have tended to slow the rate ofacceleration in the growth of the economy.Further to the above is the issue of energy infrastructure shortfalls, which has tended tovirtually cripple the industrial sector of the economy leading to reduction in productivity aswell as job losses. The growth in the economy has not been accompanied by the expected jobcreation and it is in this direction that the infrastructure sector can play a critical and leadingrole in serving as a conduit for skills enhancement and employment creation.Since independence, the country has made a series of investments into theinfrastructure sector. Under the 7-year development plan (1963/64-1969/70), signi cantinvestments in infrastructure were made in a number of sectors such as the energy, railway,education, road and health sectors. For instance, the construction of the Akosombo Dam forhydroelectric power generation cost US 258 million. The construction of theseinfrastructure whiles facilitating the rapid growth of the country around the period alsogenerated direct, indirect and induced employment through the engagement of both localand foreign contractors with varying skill levels as well as the opening up of the localeconomies in the areas where these infrastructure projects were undertaken. It must beindicated that, by 1982, the country was in the doldrums of economic crisis withdeterioration in social and physical infrastructure. This could largely be placed at thedoorsteps of the frequent military juntas that bedevilled the country beginning 1966. The1966 coup truncated the 7-year development plan and hence the infrastructure developmentsdesigned under the plan. The truncation of the development plan and the subsequentabandoning of the infrastructure projects implied loss of jobs.Since the era of the 7-year plan, most of the policies on infrastructure sector have beenon short-term or, in some instances, adhoc basis. Some of these infrastructure policies werecontained in programmes such as the Economic Recovery Programme (ERP) which beganin 1983; and the Programme of Action to Mitigate the Social Cost of Adjustment(PAMSCAD) which was initiated in 1989. The PAMSCAD basically made use of labourintensive methods in undertaking the various infrastructure projects that were initiated. Thisensured the employment of a number of people, including those who had been laid off as aresult of the economic reforms.Over the last two decades, policies and funds with some infrastructure componentshave ranged from the Ghana Road Fund of 1985 which was restructured in 1997 with thepassage of the Road Fund Act of 1997 (Act 536); the Ghana Poverty Reduction Strategy(GPRS I & II); the Ghana Shared Growth Development Agenda (GSGDA, 2010-2013); andthe Ghana Infrastructure Investment Fund (GIIF) which was passed into law under the GIIFAct, 2014 (Act 877).1
There is yet another national infrastructure strategic plan in the pipeline named "TheNational Infrastructure Plan", which is still at the draft stage, is expected to span a period of2018-2057 when it is passed into law. The aim of these policies and many others are gearedtowards harmonising infrastructure development in the country, while at the same timeproviding avenues for the private sector to be the main drivers of growth, employment anddevelopment.The above seems to point out the urgent need to improve upon the stock ofinfrastructure in the country to fast-track the rate of economic transformation andemployment creation. Ghana's infrastructure indicators compared to other African middleincome countries still remain low (African Infrastructure Country Diagnostic, 2010). In thearea of quality of infrastructure, the African Development Bank (2012) ranks Ghana farbelow the best performing countries in Africa. In addition, the Africa Infrastructure CountryDiagnostic (2010) reports that Ghana is doing quite well economically, but there is a seriousgap between the needs and available economic and social infrastructure to sustain thegrowth. Indeed, there is a growing demand for infrastructure in Ghana given the growingpopulation and the increasing pressure on the existing ones.In addressing these challenges, the Government of Ghana (GoG) has identi ed theneed to partner the private sector to ll the gaps in infrastructure. It is estimated that, Ghanarequires a sustained spending of US 1.5 billion per annum over the next couple of years inorder to bridge the de cit in infrastructure (Ministry of Finance [MoF], 2014). The countryalready spends about US 1.2 billion per year on infrastructure, equivalent to about 7.5 percent of Gross Domestic Product (GDP) (Foster & Pushak, 2011). This means that public andprivate investments should necessarily be increased in order to satisfy the infrastructuralneeds of the country.Public investment in economic and social infrastructure ultimately leads to greatbene t for the society in terms of direct, indirect and induced bene ts. Among these bene tsare im
Directorate of Research, Innovation and Consultancy University of Cape Coast Cape Coast Tel: 03321-33172, 024-44693747, 024-4103776 E-Mail:dric@ucc.edu.gh JUNE 2017 Background Studies On Infrastructure Sector In Ghana
The CSS background properties allow you to control the background color of an element, set an image as the background, repeat a background image vertically or horizontally, and position an image on a page. Properties include background, background-color, background-attachment, background-image, background
II SECTOR ASSESSMENT: CONTEXT AND STRATEGIC ISSUES 2 A. Overall Transport Sector Context 2 B. Subsector Assessments 3 C. Core Sector Issues, Causes, and Eff ects 19 III SECTOR STRATEGY 21 A. Government Sector Strategy and Plans 21 B. ADB Sector Support Program and Experience 22 C.
Why Composable Infrastructure? Composable Infrastructure helps IT to respond to the challenges laid down by new organizations. It can be considered as the next phase of hyper-converged infrastructure or the next version of on-premise infrastructure. Composable Infrastructure consists of multiple resources including, but not limited to, compute,
ow Can Investment in Nature Close the Infrastructure Gap? Executive Summary New research shows that nature-based infrastructure (NBI) is up to 50% cheaper than traditional "grey" infrastructure to provide the same infrastructure service. In addition, NBI provides 28% better value for money than grey infrastructure. These numbers are based
The agricultural sector in Zimbabwe is a critical sector in terms of economic growth and development. However the sector has been experiencing some setbacks in recent years. This paper sought to examine the effects of infrastructure development in the agricultural sector on sustainable food production.
PS-PREP Critical Infrastructure Sector-Specific Engagements DHS Office of Infrastructure Protection is collaborating with sectors to: Identify guidelines, best practices, relevant regulations and agreed codes of practice that already apply to the sector Cross-map to adopted standards Develop framework guide for use by sector entities as well as
internal control data of the compound document or parts of the user data. The entire file consists of a header structure (the compound document header, 4.1) and a list of all sectors following the header. The size of the sectors can be set in the header and is fixed for all sectors then. HEADER SECTOR 0 SECTOR 1 SECTOR 2 SECTOR 3 SECTOR 4 SECTOR 5
The Japanese writing system incorporates three main types of script -- kanji, hiragana and katakana. Kanji are Chinese characters introduced to Japan in the 5th and 6th century. These are ideograms. Hiragana and katakana are phonograms, a syllabary developed in Japan. Katakana is used for onomatopoeia and the many foreign words that have been assimilated into the language. If you are learning .
