Ghana’s urban population is set to grow by 2.7% year-on-year over the coming decade.
This will be driven by the growing construction sector.
According to Fitch Solutions, urban residents are expected to make up 65.5% of the total population by 2034.
This will rise from 59.8% in 2024.
In a report titled “Ghana Construction Outlook: Strong Growth Likely To Spill Over To 2025”, the UK-based firm said it expects a spillover of favourable macroeconomic conditions to support Ghana’s robust construction industry growth in 2025.
“A combination of lower interest rates, fortified reserves and increased government confidence in undertaking policy risks will markedly enhance public financing conditions for construction projects. Developers will benefit from more accessible credit, while improved fiscal health will support greater infrastructure investment, collectively spurring substantial growth across the construction sector”, it mentioned.
It continued that with the conclusion of the IMF Extended Credit Facility programme in 2026, its Country Risk team expects further fiscal loosening.
“Combined with reduced inflation rates and strong consumer confidence, this is expected to boost construction activities and infrastructure development. We maintain an optimistic outlook for the construction industry during this period, with the sector projected to expand by 6.9% in real terms in 2026:”. It added.
However, it expects growth in the construction industry to moderate over the medium-to-long term as trade uncertainties ease and gold prices stabilise.
“Our projections indicate a deceleration to an average growth rate of 4% y-o-y through the end of our forecast period in 2034. Despite the slower growth compared to the short term, we recognise the expanding scale of the construction industry”, it pointed out.
Construction Industry in 2024
The construction industry’s growth in 2024 was further supported by a resilient real estate market, characterised by strong demand for residential and commercial properties and their development in urban areas including Accra and Kumasi.
It concluded that urbanisation remained a key contributor to sector growth, with Ghana’s urban population set to grow by 2.7% year-on-year over the coming decade.
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