Ghana’s urban population is projected to grow by 2.7% year-on-year over the next decade, with urban residents expected to account for 65.5% of the total population by 2034, up from 59.8% in 2024.
According to a new report by Fitch Solutions titled “Ghana Construction Outlook: Strong Growth Likely To Spill Over To 2025”, this growth will be largely driven by a robust construction sector supported by favourable macroeconomic conditions.
The UK-based research firm notes that a combination of lower interest rates, stronger foreign reserves, and increased government confidence in pursuing policy reforms will significantly improve 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,” the report stated.
Looking ahead, Fitch Solutions expects a further boost in construction activity with the conclusion of the IMF Extended Credit Facility programme in 2026. Its Country Risk team anticipates fiscal loosening, coupled with lower inflation and increased consumer confidence, to further drive 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,” the report added.
However, growth is expected to moderate over the medium-to-long term as global trade uncertainties ease and gold prices stabilise.
“Our projections indicate a deceleration to an average growth rate of 4% year-on-year 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 noted.
Construction Sector Performance in 2024
The construction industry in 2024 saw continued resilience, bolstered by a strong real estate market and high demand for residential and commercial properties, particularly in urban hubs like Accra and Kumasi.
Fitch concluded that urbanisation remains a key driver of sector growth, reaffirming its projection of a 2.7% annual increase in Ghana’s urban population over the coming decade.