Working

Working Paper
Paper XXX

Ghana’s
Title
construction
Subtitle
sector and
List of authors

youth Publication date

employment
Emily Darko and Alexandra Löwe

Participatory
Development
Associates Ltd
About Youth Forward
The Youth Forward initiative is a partnership led by The MasterCard Foundation, Overseas Development Institute, Global Communities, Solidaridad, NCBA-
CLUSA and GOAL. Its focus is to link young people to quality employment or to start their own businesses in the agriculture and construction
sectors in Ghana and Uganda. The Youth Forward Learning Partnership works across the initiative to develop an evidence-informed understanding
of the needs of young people
in Ghana and Uganda and how the programme can best meet those needs. The Learning Partnership is led by the Overseas Development Institute in the
UK, in partnership with Development Research and Training in Uganda and Participatory Development Associates in Ghana.

Overseas Development Institute

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© Overseas Development Institute 2016. This work is licensed under a Creative Commons Attribution-NonCommercial Licence (CC BY-NC 4.0).
Readers are encouraged to reproduce material from ODI Working Papers for their own publications, as long as they are not being sold
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As copyright holder, ODI requests due acknowledgement and a copy of the publication. For online use, we ask readers to link to the original resource on
the ODI website. The views and opinions presented in this paper are those of the authors and do not necessarily represent the position or policy
of ODI, The MasterCard Foundation or its partners.

Cover photo: Claw and Company, Chad Skeers 2011. CC BY-NC-ND 2.0.
Contents

About the authors 5

Acknowledgements 5

Abbreviations 6

Executive summary 7

1 Introduction 9

2 Construction in Ghana 11

2.1 Ghana’s economy 11

2.2 Importance of the construction sector 11
2.3 Policy context 13

3 Sector trends and potential for youth employment 15

3.1 Housing and urban development 15

3.2 Infrastructure 16
3.3 Transport infrastructure 17
3.4 Recent discovery of oil 17
3.5 Sustainable materials and construction 17
3.6 Trainee and apprentice-level employment in construction 18

4 Entry points into construction for youth 20

4.1 Informal apprenticeships 20

4.2 Vocational training institutions 22
4.3 Migration 22

5 Barriers to young people’s participation 23

5.1 Access to finance 23

5.2 Policy environment 26
5.3 Perceptions of the construction sector 29

6 Implications for Youth Forward 28

Ghana’s construction sector and youth employment

Tables
Table 1. Electricity supply in Ghana 16

Figures
Figure 1. Trends in cement production (metric tonnes) 12
About the authors
Emily Darko is a former Research Officer at the Overseas
Forward’s Learning Partnership Applied Research Lead and
Development Institute (ODI) and is now Research and
Research Officer at the Overseas Development Institute’s
Evaluation Manager at UnLtd. Alexandra Lö we is Youth
Research and Policy in Development (RAPID) programme.

Acknowledgements
The authors would like to thank all interviewees for
YIEDIE and The MasterCard Foundation for comments
their time and insight, without which this research
provided on a draft version of the report. We also thank
would not have been possible. In addition, we thank
Anne Buffardi and Łukasz Marc´ for their feedback on
Participatory Development Associates, and in particular
earlier drafts, Sarah Turner for project management, and
Edem Agbe, for research assistance. We are grateful
Hannah Caddick for publication editorial and design
for the peer review comments received from Frank
support. All views and opinions expressed in this paper
Fugar (Kwame Nkrumah University of Science and
are those of the authors, who took the final decisions on
Technology Department of Building Technology) and
content, and do not necessarily represent the position or
Louise Fox (University of California, Berkeley). We policy of The MasterCard Foundation or its partners.
thank

Ghana’s construction sector and youth employment

Abbreviations
AAG Artisans Association of Ghana
AfDB African Development Bank
BRRI Building and Road Research Institute
CBMWU Construction and Building Materials Workers’ Union
CEPA Cambridge Economic Policy Associates
COTVET Council for Technical and Vocational Education and
Training DTU Danish Trade Union Council for International
Development EIU Economist Intelligence Unit
FDI foreign direct investment
GDP gross domestic product
GIPC Ghana Investment Promotion Centre
GLSS Ghana Living Standards Survey
GREDA Ghana Real Estate Development Association
GSS Ghana Statistical Service
GYEEDA Ghana Youth Employment and Entrepreneurial Development Agency
HFC Home Finance Company
ILO International Labour Organization
IMF International Monetary Fund
MIC middle-income country
MWRWH Ministry of Water Resources, Housing and Public Works
NAO National Audit Office
NVTI National Vocational Training Institute
NYEP National Youth Employment
Programme PPP public–private
partnership
SSNIT Social Security and National Insurance Trust
UN United Nations
UN-Habitat UN Human Settlements Programme
TVET Technical and Vocational Education and Training
USAID United States Agency for International Development
YIEDIE Youth-Inclusive Entrepreneurial Development Initiative for Employment
Executive summary
Ghana’s economy has grown rapidly in the past 20 years,
to afford and access high-quality training and the tools
and the construction sector has both contributed to
necessary for their chosen trade (GSS, 2013).
and benefited from this. The sector itself has registered
impressive growth, increasing its contribution to gross Demand for low-cost housing as an entry point
domestic product (GDP) and employing 320,000 people. It
for young people
employs 2% of young people in Ghana and provides more
This paper finds that the most important sub-sector in
training and apprenticeship opportunities to young people
construction for young people is low-cost housing. Urban
than any other sector (Owusuaa, 2012; GSS, 2013).1
Ghanaians live in housing that is of poor quality and
Despite this, the construction sector has a large skills
frequently overcrowded and, while the majority aspire
gap, due in part to training quality, and there is significant
to own their own homes, only 8% of Ghanaians are able
unmet demand for skilled artisans. The number of skilled
to afford to do so (Awuvafoge, 2013). According to UN
artisans in Ghana almost halved between 1960 and 1984,
estimates, four new dwellings would need to be built every
from 70,571 to 37,258 (Offei-Nyako et al., 2014). More
minute of the working day over the next decade in order
recently, the World Bank estimated there was a shortfall
for this situation to be rectified (UN-Habitat, 2011). If
of 60,000 artisans and tradespeople in construction, and
the need for improved housing could be translated into
that a further 250,000 skilled artisans would be required
effective demand, this sector could employ a large number
by 2020 (Darvas and Palmer, 2014). These characteristics
of skilled and semi-skilled young people.
make construction an ideal sector through which to address
The construction of low-cost housing represents an
Ghana’s youth development and unemployment challenges.
ideal entry point for young people as these dwellings tend
This paper provides an overview of the sector, with a
to be built by artisans. Artisans also provide the majority
focus on identifying its opportunities and challenges, and
of apprenticeships in the sector. Entry is also comparably
their implications for young people – specifically those
easy as the sub-sector does not require large quantities of
without access to tertiary education. In doing so, it aims
financial capital, while the necessary social capital can be
to inform Youth Forward, an initiative of four consortia
acquired through collaboration with a master craftsperson
working in the construction and agriculture sectors in
(according to a senior artisan). The provision of sustainable,
Ghana and Uganda, in partnership with The MasterCard
locally sourced and low-cost building materials could also
Foundation. In particular, it provides the background
provide an opportunity for young people, provided that
information for the Youth-Inclusive Entrepreneurial
reliable quality certification process are in place. This would
Development Initiative for Employment consortium
allow for a shift away from imported materials.
(YIEDIE), which works in youth development in Ghana’s
Municipal building construction also forms an important
construction sector. Beyond this, it provides an overview
source of business for small and medium-sized construction
of Ghana’s construction sector from a youth development
firms in Ghana. Funding for schools, hospitals and religious
perspective, making it relevant to a wider range of actors.
institutions comes from a range of public, non-profit and
This paper identifies a number of trends in the
private (including private individuals) sources and generates
construction sector that will affect young people’s ability
a significant amount of work in the sector. In rural areas in
to participate in the sector. As a demographic, young
particular, there is often explicit focus on using local labour,
people are better placed to access certain opportunities
so municipal buildings can offer an important area of
than others. Their age means they have less experience,
employment generation for young artisans.
but they are able to compensate for this through their
additional mobility. They also own, or have access to, less Supporting policies to encourage youth
capital – financial, physical and social – which means that
participation in the sector
opportunities requiring any or all of these are beyond
Construction of housing for wealthier middle-class
their reach. In Ghana’s construction sector, young people’s
Ghanaians is also likely to increase in the coming years,
opportunities are particularly constrained by their ability
provided economic growth and political stability are
maintained. However, the construction of these homes is

1 Of young people working in construction in Ghana, less than 3% are women. Nevertheless, this report refers to young people of both genders when
discussing young people or youth, even though the majority may be male. Difficulties faced by female youth are discussed in a separate section.
more frequently conducted by enterprises large enough for the built environment is shared between three
to have access to considerable capital and financing ministries: the Ministry of Water Resources, Housing and
opportunities, which train far fewer artisans. Similarly, as Public Works, the Ministry of Transport and the Ministry
Ghana’s economy continues to expand into the middle- of Road and Highways. The Ministry of Employment and
income bracket, there is increasing demand for improved Labour Relations covers labour and employment aspects of
transport infrastructure. But, again, most contracts for the sector, while the Ministry of Education covers research
these types of projects go to larger, often international, and development and vocational training.
firms with limited or no explicit requirements in terms Thus, to maximise the impact of YIEDIE’s work,
of local job creation and are particularly unlikely to hire the consortium will need to focus on building good
young people who lack social capital to access any jobs. relationships with government in order to have an
There is therefore room for Youth Forward to work impact on the policy-making process. With regard to the
with government to improve how it engages contractors regulatory environment, questions of land ownership,
and artisans for publicly funded construction projects. access and security of tenure on the one hand and the
This is particularly important as competition is expected to standard of young people’s skills on the other, are of
intensify for specialist construction services as the utmost importance, as these will all, directly and indirectly,
economy continues to expand. The discovery of commercial affect demand for their services.
quantities of oil in 2007 will continue to have significant Finally, the review finds that the sector does not enjoy
consequences for the construction sector in south-western a positive image. This deters young people from pursuing
Ghana. Of particular importance here are the secondary careers in construction. This negative image results from the
construction projects stimulated by the oil industry, such as construction sector’s poor health and safety record, which
accommodation for labour. requires both health and safety regulation as well as training
The regulatory environment of the sector also affects for artisans. The sector’s image acts as an even stronger
young people. There is no single government agency in deterrent to women, who make up less than 3% of employees
Ghana that oversees construction. Instead, responsibility in the sector, as construction is considered ‘men’s work’.
1 Introduction
Ghana’s construction sector has registered impressive
The review begins in Section 2 by introducing Ghana’s
growth in the past two decades and been a significant
economy and the role of the construction sector within it,
contributor to the economic transformation that has
before outlining the policy context and anticipated trends.
seen Ghana become a middle-income country (MIC). In
Section 3 turns its attention to the opportunities available
addition, it employs 320,000 people and approximately
to young people, with a focus on those aspects of the sector
2% of young people, as well as providing more training
that are both growth areas and accessible to young people
and apprenticeship opportunities to young people than any
who are looking for training and have limited financial
other sector (Owusuaa, 2012; GSS, 2014). According to
capital. Section 4 describes the entry points through which
the World Bank, there is likely to be a skills gap of 250,000
the majority of youth enter the construction sector –
artisans and tradesmen by 2020 (Darvas and Palmer,
namely, informal apprenticeships or vocational schooling.
2014). Simultaneously, Ghana’s infrastructure and housing
Section 5 considers obstacles to youth participation,
stock is in relatively poor condition for a country of its
their implications for the Youth Forward initiative and
level of development. The sector is therefore expected to
what might be done to facilitate young people’s access to
register further growth as the housing stock and national
construction sector opportunities.
infrastructure is upgraded.
This report is based on fieldwork conducted in Ghana
This paper provides an overview of the construction
with construction sector stakeholders in October and
sector, with particular focus on identifying the economic
November 2015. A total of 26 interviews were conducted
and employment opportunities and challenges, and their
with representatives from construction companies,
implications specifically for young people. The paper was
training providers and academic institutions. A focus
written with the dual purpose of informing the Youth
group discussion was also conducted with artisans.
Forward initiative – particularly the work of YIEDIE – and
Each interview lasted approximately one hour and was
providing a youth-focused overview of the sector. This latter
conducted in person, in the interviewees’ offices, by
will be of relevance to youth development initiatives in the
two interviewers, from Ghana and the UK, following
construction sector, both in Ghana and in other countries.
a standardised interview guide (adapted as necessary).
Much of Youth Forward’s operational context is beyond
This was complemented by a desk review of industry,
the control of the initiative but we nevertheless discuss it
academic and media publications on the construction
in detail as it has the potential to affect the success of the
sector in Ghana. Publications on Ghana’s construction
programme. It also serves to highlight where lobbying and
sector are, however, very limited and usually cover only
advocacy energies might yield the most results – not just for
very specific aspects; there is a real shortage of data on
beneficiaries of the initiative but for all young Ghanaians
the sector. And much of the data that do exist have been
in the sector. We provide a general overview of the sector
collected by private sector companies and are therefore not
and its relevance to young people, and an analysis of
publicly available. Where data are available, they are often
implications for Youth Forward in the final section (see Box
inconsistent and frequently contradictory.
1 for a brief description of YIEDIE’s work).2

2 The political context within which the initiative operates in Ghana is described in further detail in Agbe et al. (forthcoming 2016)
Understanding the context of the Youth Forward initiative in Ghana: A political economy analysis. London: Overseas Development Institute.

Ghana’s construction sector and youth employment

9
Box 1. Youth Forward and Youth-Inclusive Entrepreneurial Development Initiative for Employment
Youth Forward
The Youth Forward initiative is a partnership led by The MasterCard Foundation, Overseas Development
Institute, Global Communities, Solidaridad, NCBA-CLUSA and GOAL. Its focus is to link young people to
quality employment or to start their own businesses in the agriculture and construction sectors in Ghana and
Uganda. This five-year, US$74 million initiative will reach more than 200,000 economically disadvantaged youth
aged 15-24. The Youth Forward Initiative uses a holistic approach that combines market-relevant skills training,
mentorship, internships and access to financial services to help young people transition out of poverty and into
sustainable livelihoods.
YIEDIE
YIEDIE is a five-year project, in partnership with The MasterCard Foundation and under the Youth Forward
initiative that aims to create employment and entrepreneurship opportunities in the construction sector for
disadvantaged young people. In the local Twi language, yiedie means progress. The consortium aims to provide
technical construction-relevant training or entrepreneurship training to 23,700 young people, as well as life
skills. The programme will consider the entirety of the construction value chain, so young people are qualified to
participate in all its aspects.
The project has two primary aims: the first is to increase the employment of economically disadvantaged youth
in the construction sector, with an increased income, new or better employment and increased savings for 90% of
these young people. The second is to create an improved enabling environment for all construction sector
stakeholders.
YIEDIE’s core activities
Prepare young people for employment and entrepreneurship opportunities through training in business and life
skills, facilitating apprenticeships and offering mentorship and networking opportunities. Beneficiaries can choose
from one of two pathways. The first is for those who would like to acquire technical skills, who will receive six
months of training through vocational training centres. The second is for those who already have technical skills
and wish to complement these with three months of entrepreneurship training at YES-Ghana. High-performing
trainees will be referred for business development services, but all participants will have the opportunity to take a
technical certification exam. This training will include financial literacy and young people will have the option of
signing up for savings services. Alumni will be encouraged to join the Artisans Association of Ghana (AAG) to take
advantage of the innovative job matching system for the construction workforce.
Improve the capacity of vocational training centres. The consortium will support the development of the
Improved Apprenticeship model, which is the apprenticeship curriculum approved by the National Vocational
Training Institute (NVTI) for its proficiency Level 1 certification. Master craftspeople will be trained to use the
Improved Apprenticeship model in their training delivery.
Increase access to financial service providers. The consortium will work with financial institutions to provide
financial education and refine a range of financial services and products for youth.
2 Construction in Ghana
2.1Ghana’s economy
Ghana has benefited from a stable and democratic political 2.2Importance of the construction sector
system and high economic growth rates over the last 20 The construction sector is critical to Ghana’s economic
years. The discovery of oil in commercial quantities in health, both by virtue of its size and as a driver of growth.
2007 helped fuel this growth. Ghana became an MIC The share of GDP associated with construction increased
in 2010, ahead of schedule, due to a technical statistical from 5% in 1975 to 9% in 2000 and then to 15% by 2007
adjustment (Moss and Majerowicz, 2012).3 The structure (Sutton and Kpentey, 2012). In 2006, construction was the
of Ghana’s economy is that of a country in transition: the fastest-growing sector in the economy, with a growth rate
drivers of economic growth continue to be the services of 8% against the national average of 6% (Ministry of
sector, which constitutes 51.1% of the economy, followed Education, 2010). Even when Ghana’s economy registered
by agriculture and industry, which make up 30% and its lowest growth rates in 2013, the construction sector still
19%, respectively (Jerven and Duncan, 2012). experienced growth higher than the national average. The
Economic growth has slowed in the past few years; sector’s growth rate was 8.4% while the national economy
The Economist wrote of Ghana in 2015, ‘How do you grew only at 5.4% in 2013 (Institute of Statistical, Social
spot an economic crisis from afar? Abandoned building and Economic Research, 2015). Demand for cement in
projects are one red flag. So are relentless power cuts. Ghana has been growing, further demonstrating the health
Ghana has plenty of both’ (2015). While this assessment of the sector: 4.8 million metric tonnes of cement were
may be pessimistic, Ghana has experienced a sharp used in 2010 and this rose to 5.5 million by 2012 (Sutton
reduction in growth rates from 2009 onwards, when and Kpentey, 2012). More and more of this cement is also
growth dipped below 4% for the first time since the turn of being produced domestically (Figure 1).
the millennium. Growth rates recovered to 14% in 2011, Construction is labour-intensive, and the sector is an
but this proved short lived: they again slowed to 4% in important employer of Ghana’s workforce, with around
2014 and 2015 (World Bank, 2015). Analysts have put 23,000 registered contractors (Ministry of Education,
this down to a severe energy crisis as well as unsustainable 2010). According to the Ghana Living Standards Survey
domestic and external debt burdens, meaning Ghana (GLSS), 2% of young people who had worked in the
required assistance from the International Monetary Fund previous week had worked in construction. For out-
(IMF) in February 2015 (African Economic Outlook, of-school youth this was higher, at 2.5% (GSS, 2013).
2015). Equally, inflation has been creeping up since 2012, Construction also has a catalytic effect on economic
reaching levels of almost 17% in 2015 and rising further in development: good infrastructure and housing is one of
2016 (World Bank, 2016). This has led to interest rates of the foundations of higher growth rates. Given its strong
as high as 26% in 2016 and a depreciation of the currency, backward and forward linkages,4 construction also has one
which has increased the price of borrowing for housing as of the highest multiplier effects (Osei, 2013).
well as the cost of imports (Bank of Ghana, 2016). The most recent estimates of growth rates in
The economy is expected to recover in 2016, with a construction are 14% for 2014, and projections suggest
return to 6% growth. This assumes an increase in oil and these high growth rates will continue over the medium
gas production, further private sector and infrastructure term to 2017. These growth rates have been the result of
investments and, all importantly, on-going political investments in real estate, improved public infrastructure
stability in the run-up to the elections of November 2016 and an expansion of the mining sector. Real estate
(African Economic Outlook, 2015). investments have, in large part, served Ghana’s growing
middle class, its diaspora and expatriates and speculators,
but there are also significant opportunities in the low-cost
housing sector if the growing urban population is to be
accommodated (Ministry of Education, 2010; UN-Habitat,
2011). Infrastructure developments contributed just over

3 For an analysis of this process and its implications see also Jerven and Duncan (2012).
4 Backward linkages are a firm’s connections with its input suppliers and forward linkages are those between a firm and its customers.

Ghana’s construction sector and youth employment

Figure 1. Trends in cement production (metric tonnes)

350,000

300,000

250,000

200,000

150,000

100,000

50,000

0
pr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12

Source: Osei (2013).

one percentage point to Ghana’s annual per capita GDP

only gradually as the country becomes wealthier, despite
growth during the 2000s. However, raising the national
privatisation efforts. However, this also means Ghana’s
infrastructure endowment to that enjoyed by the region’s
recent negotiations with the IMF may have a negative
MICs could boost annual growth rates by three percentage
impact on the large-scale infrastructure construction sector,
points (Foster and Pushak, 2011).
as IMF assistance came with a number of conditionalities,
Stakeholders interviewed for this paper agreed that
including a budget ceiling for infrastructure projects
construction had slowed in response to the weakened
(African Economic Outlook, 2015).
economy and that some actors may have gone out of
Yet the informal sector appears to be of most relevance
business as a result. Nevertheless, they felt it remained
to young people: the vast majority of youth in the
a strong growth sector overall, particularly the informal
construction sector are employed informally. According to
part. The formal sector, meanwhile, is expected to benefit
the GLSS 6, 91% of young people working in construction
from additional short-term spending in 2016 in the run-up
work in the informal sector.5 Of those working in the
to the elections. Strong foreign direct investment (FDI) in
sector, just under 29% are employees; 27% are apprentices
the sector has also helped insulate it from the slowdown
and another 21% are casual workers. This is reflected
in economic growth: for the period from January 2008
in the wage level reported by young people in the sector,
to December 2010, 34% of Ghana’s FDI went to the
which in 2013 was approximately $100 per month (GSS,
construction sector. This took the form of 75 projects with
2014). This is somewhat below monthly earnings in mining
a total value of $2.3 billion (Boakye-Gyasi and Li, 2015).
($210), health and social work ($152), transport and
The government of Ghana and a number of state-owned
storage ($110) and agriculture ($144). Given the nature of
enterprises (with loans from development partners) are
apprenticeship structures, this is not surprising, and may
the largest investors in the built environment (Osei, 2013).
simply reflect that young people in construction are still
This is not surprising for a country at Ghana’s level of
in training rather than having reached their full earning
socioeconomic development, and is likely to change
potential (Section 4 discusses apprenticeships in detail).

5 According to World Bank research from 2010, the overall number of people, of all ages, working in the informal construction sector is 70-80% (World
Bank, 2010). It is unclear whether this means that young people are over-represented in the informal sector or whether the proportion of employees in
the informal sector has increased since 2010.
2.3 Policy context
Past legislation on state provision of low-cost housing
There is no single government agency in Ghana that
has under-performed. This may be because the low-cost
oversees the construction sector. Responsibility for and
housing sector is both over- and under-regulated, which
jurisdiction over the built environment is shared mainly
significantly increases the cost of dwellings. Regulations
between three government ministries: the Ministry of
that reduce incentives for investments in rental property
Water Resources, Works and Housing (MWRWH), the
include rent controls, stipulations for minimum plot
Ministry of Transport and the Ministry of Roads and
sizes and the requirement that all dwellings must be
Highways. In addition, the Ministry of Employment and
self-contained (UN-Habitat, 2011). Cumbersome permit
Labour Relations covers labour and employment aspects of
processes in housing construction also slow down the
the sector, while the Ministry of Education partially covers
rate at which dwellings are built (UN-Habitat, 2011). On
research and development and vocational training. The
the other hand, there is also a lack of quality control of
somewhat inconsistent and ad hoc nature of construction
construction inputs and artisans qualifications, which can
policies reflects the manner in which responsibility for the
considerably increase costs for those attempting to build
sector is divided across these ministries.
their own houses (UN-Habitat, 2011).

Housing and planning policy Youth policy

In 1986 the then Ministry of Works and Housing formed
Government has a number of youth programmes that
a national Housing Policy Committee. The Committee’s
focus on skills creation and employment, including several
report culminated in a National Housing Policy and Action
aimed at the construction sector, which come under the
Plan for 1987-1990, which sought to improve strategies
Ministry of Employment and Labour Relations. The
for rural and urban shelter. The Action Plan covered
Youth Employment Agency coordinates and facilitates
rationalising land tenure and title regulations, improving
youth development activities in the country and oversees
the delivery of finance to promote a cost-effective
the National Youth Employment Programme (NYEP),
construction industry and increasing the use of local
which sits in this ministry (Ministry of Youth and Sports,
building materials, as well as the involvement of women in
2013). NYEP was established in 2006 under the Kufuor
the sector (Bank of Ghana, 2007). The policy represented
administration with the aim of creating employment,
a move away from state-led construction towards greater
work experience opportunities and skills training. It
private sector involvement (Arku, 2009).
came about as the result of a recommendation from
Ghana’s Vision 2020 document targeted the provision
the National Security Council to reduce youth un- and
of low cost-housing units between 1997 and 2000, but
under-employment (Ministry of Youth and Sports,
lack of funds and political will meant the strategy was not
2013). NYEP became the Ghana Youth Employment and
implemented (Bank of Ghana, 2007). Ghana’s first Poverty
Entrepreneurial Development Agency (GYEEDA) in 2012
Reduction Strategy subsequently focused on attracting
and was intended to coordinate all youth employment
foreign capital to fund housing development and benefited
and entrepreneurial programmes. It has been plagued with
under Ghana’s debt relief programme (Bank of Ghana, 2007).
governance issues and by allegations of corruption, so
A revised Housing Policy was published in 2015.
interviewees did not consider it particularly effective.
This focuses on increasing private sector participation in
Parliament has promulgated a Youth Employment Act,
housing construction, maximising land use and housing
which aims to restructure and address problems associated
for rental purposes, promoting social housing and slum
with GYEEDA and improve policy-making in the youth
upgrading and involving communities to ensure improved
sector. The Council for Technical and Vocational Education
design and orderly human settlement growth with
and Training (COTVET) is also involved in an Industrial
appropriate infrastructure. The policy aims to support the
Attachment Policy and a national Technical and Vocational
informal private sector to access land through land banks
Education Training Strategic Plan, which is designed to
and ownership confirmation and guarantees provided
encourage skills development and on-the-job learning.
by municipal authorities (MWRWH, 2015). MWRWH
is also working with the World Bank to improve urban Construction and safety
infrastructure, in order to reduce the cost of housing
Construction is one of Ghana’s most hazardous industries,
construction for individuals, as the lack of municipal
measured by the number of fatalities, and the number of
planning remains a major problem for developers. The
accidents continues to increase (Akomah et al., 2010).
policy makes provision for a National Housing Fund,
While a number of Acts of Parliament seek to improve
which will finance low-income housing and infrastructure
the sector’s health and safety record, this has not been
development (MWRWH, 2015). However, interviewees
translated into a coherent health and safety policy. The lack
still expressed scepticism about the ability of the policy
of training of artisans in occupational health and safety has
to deliver the required housing and to generate greater
aggravated the situation further (Fugar et al., 2013).
employment in the construction sector.
Evidence from other countries suggests regulation alone
is insufficient. In the UK, for example, the National Audit
Office (NAO) attributes the reduction in construction ordered the Electoral Commission to clean the electoral
accidents to an increase in unannounced site inspections register, after two plaintiffs convincingly argued that it
(NAO, 2004). As this is a relatively resource-intensive included the names of people ineligible to vote (minors,
approach to health and safety, persuading construction deceased individuals and people who had registered
trainees of the importance of safety in the workplace without the correct paperwork) (The Africa Report, 2016).
and providing them with the training necessary to make However, the risk of instability is minimal, and so the
changes is perhaps the more fruitful approach for Ghana. impact of elections is likely to be limited to an increase in
government expenditure on the construction of schools
Political risk in the construction sector and other public buildings. Ghana’s economic and political
There is a small risk that the elections in November stability is also at risk from neighbouring countries, which
2016 will cause disruptions to the economy, particularly have experienced conflict in recent years and are a source
considering current concerns about the credibility of of large numbers of immigrants (Adepoju, 2005).6
the electoral register. Most recently, the Supreme Court

6 For further analysis of political context and risk see Agbe et al. (forthcoming 2016).
3 Sector trends
and potential for
youth
employment
The construction sector, like any other, is subject to Ghana between 2011 and 2020. This translates into four
domestic and internal pressures and trends. This section new rooms per minute of the working day for the
considers the important construction sub-sectors,
identifying growth areas as well as those coming under
pressure from international competition. Based on this
analysis, we then consider where there are opportunities
for young people.

3.1Housing and urban development

Residential buildings
Urban Ghana is experiencing a housing crisis, with extreme
overcrowding and poor-quality housing that falls short of
minimum standards as defined by the UN. Housing quality
is poor by comparison with other African countries of
similar, or even lower, levels of development (UN-Habitat,
2011). For example, only 37% of Accra’s households had
access to piped water in 2008, compared with 68% in
Addis Ababa, 70% in Bujumbura and 67% in Cotonou (UN-
Habitat, 2016). Around 90% of housing in urban Ghana is
built by informal small-scale contractors, from sandcrete
blocks, outside of local authority control, and is financed
through individual savings and family support.
Land for these houses is acquired through local chieftaincy
institutions and construction occurs over long periods
of time, and only incrementally, when finances allow for
further construction (UN-Habitat, 2011; Awuvafoge,
2013). While the majority of Ghanaians prefer to own
their own homes, only about 8% can afford to do so
(Awuvafoge 2013).
The majority of households in urban Ghana rent rooms
in compounds or other types of multi-occupied residential
buildings. Overcrowding is a problem: 60% of households
occupy a single room, even though the average household
comprises five people (UN-Habitat, 2011; Awuvafoge,
2013). If overcrowding – which the UN defines as more
than two occupants per room – is to be eliminated then
5.7 million new homes will need to be built in urban
decade from 2012 until 2021. In order to simply
maintain current housing standards, as many as 2
million new dwellings would be needed, which means
building just under 1.5 new rooms per minute. If this
housing shortage is translated into effective demand for
new dwellings, then this would create between
150,000 and 200,000 new jobs in construction. Further,
existing housing stock is in need of upgrading:
households frequently share water and
sanitation facilities with those living in the same
compound (UN-Habitat, 2011).
Despite the acute shortage of housing, the market in
second-hand homes remains unusually small, as houses
are not considered investments for resale:

‘The feelings house owners have towards their

houses are more like feelings for a grandmother than
the tools of a trade or a car. One might sell one’s
tools when they are no longer needed, or in a case of
extreme need, one might sell one’s car... but one
would not sell one’s grandmother under any
circumstances and, anyway,
no-one would buy her!’

UN-Habitat, 2011: 160.

There is another significant constituency driving

urban development, particularly in Accra: Ghana’s
domestic and diaspora middle-class. It is estimated that
Ghanaians living abroad own about half of the new
housing stock in Accra (UN-Habitat, 2011) and an even
higher proportion own land with the intention of
building on it (Bank of Ghana, 2007). This has fuelled a
boom in real estate construction. However, while
sometimes marketed as affordable,
these homes are too expensive and too few in number to
contribute to alleviating the housing shortage.

Municipal and commercial buildings

In addition to residential buildings, there are two other
significant categories of building: public buildings,
typically financed and maintained by the state, and
commercial buildings, which are privately financed for a
range of purposes, from offices to factories and retail
spaces. Of these, retail space construction seems to be
thriving in
Ghana, as its growing middle class attracts international in rural areas – and lack of assessment and management
retail brands and shopping mall development has grown for groundwater systems (Foster and Pushak, 2011).
fast (KPMG, 2014). Foster and Pushak estimate that Ghana may have as
much as 315,000 ha of land that is economically viable
for irrigation – more than ten times the area currently
3.2Infrastructure irrigated. This represents an opportunity not only for
If the quality and quantity of urban housing is to be agriculture but also for job creation in the construction
effectively addressed, this also means that new water sector, particularly for small and non-urban based artisans
and sanitation infrastructure is needed. When building and construction businesses.
new homes, developers often have to put this basic
infrastructure in place themselves, which increases Energy
costs. According to interviewees, some developers have Ghana is currently facing an acute energy crisis, as existing
established residents’ associations to maintain privately electricity generation capacity is insufficient to meet
constructed infrastructure. expanding demand (in part because of low water levels in
Ghana’s three major hydroelectric dams at Akosombo, Bui
Water and sanitation and Kpong), and much of the infrastructure is in need of
Ghana is one of only five African countries that have upgrading. Despite the focus on alternatives to hydropower
achieved their Millennium Development Goal target reliance, for example the development of liquefied natural
for water supply ahead of time. By 2008, around 84% gas terminals and plants as well as the West African
of households had access to improved drinking water Gas pipeline, Ghana continues to suffer frequent
sources (Foster and Pushak, 2011). Nevertheless, water power outages. In turn, the cost of the major
infrastructure remains problematic: it is frequently old and construction materials, cement and steel reinforcement
run-down, with rusting pipelines spoiling water. Further, has increased (Ahiaga-Dagbui et al., 2013).
in urban Ghana there is room for improving existing Steps are being taken to improve Ghana’s electricity
infrastructure by ensuring dwellings are connected to supply. The Agence Française de Développement
running water and each household has its own toilets. is investing in upgrading and building new energy
Around 70% of households in urban Ghana have access infrastructure, and the government also plans to spend
to pipe-borne water; a third of these are public standpipes $4.5 billion to double power capacity. Construction
(UN-Habitat, 2011). Ghana has a relatively large share of activity is also being ramped up in the gas sector in Ghana
the population relying on utility water (private or public (KPMG, 2014). Gas supply via the West African Gas
taps) than elsewhere in Africa, although far behind that of pipeline, from Nigeria, is due to come on stream soon, and
other MICs (Foster and Pushak, 2011), and there is very further supplies are expected as Ghana develops its own
little investment. There is also large-scale commercial theft hydrocarbon potential (Foster and Pushak, 2011).
from the network, sometimes for the purpose of secondary However, as with other major infrastructure projects,
retailing of water sachets. This means that distribution engagement of domestic firms is likely to be modest.
losses are high, demand is not met and supply is highly Artisans may be able to secure more employment
intermittent (Foster and Pushak, 2011). opportunities at the micro-provision end of the energy
Ghana has significant water resources but makes little sector – for example in the installation and servicing
use of them (Foster and Pushak, 2011). There is limited of solar power and development of mini-grid systems,
use of multi-purpose infrastructure for irrigation, flood typically part of village electrification schemes. The
control, water supply and possibly hydropower – especially

Table 1. Electricity supply in Ghana

Indicator Ghana Region All countries

Number of power outages in a 9.7 10.61 9.01
typical month
Value lost due to power outages (% 6.03 6.14 4.94
of sales)
Delay in obtaining and electrical 24.39 33.16 37.2
connection (days)

Source: Ahiaga-Dagbui et al. (2013).

number of jobs and apprenticeship schemes this sub-sector
but internal infrastructure to neighbouring countries, such
generates is therefore likely to be fairly limited.
as Burkina Faso, is in poor condition. There is therefore
demand for Ghana to invest in rail or alternative goods
3.3Transport infrastructure transportation infrastructure (Deloitte, 2013).

Roads Airports
The Brazilian government has provided $100 million to
The predominant activity in transport infrastructure is upgrade and expand Tamale Airport, and the work is
road construction, as transport in Ghana is mainly by road. being conducted by Brazilian contractor Queiroz Galvao
Road transport accounts for 98% of freight ton-miles and (Construction Review, 2015). Accra’s Kotoka Airport is
about 97% of passenger miles in the country (GIPC, 2016; also being expanded to increase its ability to serve the sub-
Ahiaga-Dagbui et al., 2013). There are 39,409 km of road region. The $400 million necessary for this project is being
network in Ghana, although the network needs upgrading financed by a number of institutions, including the African
if it is to keep up with demand. Rural road quality is fairly Development Bank (AfDB) and a number of commercial
good, but the physical extension of the rural network is banks (AfDB, 2015; EIU, 2016).
inadequate and only 24% of the rural population lives
within 2 km of an all-season road. An additional 13,000
km of all-season road would be needed to bring this up 3.4Recent discovery of oil
to 50%. Around 30% of existing rural roads are under-
The discovery of oil in 2007 has had significant
engineered, with insufficient paving for the volume of
consequences for the construction sector in south-western
traffic. Maintenance is also a considerable undertaking,
Ghana. Within a few years, the Jubilee Oilfield was
with large backlogs having accumulated over the years
producing 105,000 barrels of crude oil a day, which fuelled
(Foster and Pushak, 2011).
a number of large-scale construction projects as well as
Most of the road construction in Ghana is new investments in real estate. For example, the port in
internationally financed and carried out by foreign
Takoradi is being expanded to facilitate the export of oil.
contractor firms, sometimes tied to the source of financing. However, these large-scale construction projects tend to be
While the World Bank, one of the major investors in urban,
carried out by large multinational companies, with limited
feeder and trunk roads, provides a 7.5% price preference benefit for local labour markets. The new port in Atuabo,
for domestic contractors, this is insufficient to allow
for example, is being built by China Harbours Engineering
domestic firms to compete. Additionally, many local firms (China Daily, 2015).
do not have the turnover to access the necessary finance
The discovery of the oilfields has had an indirect impact
and equipment and struggle to find staff with adequate
on the construction sector: real estate companies are building
engineering capacity.
accommodation for migrant labourers and expatriates who
As a result, many of the World Bank’s contracts are
have settled in Takoradi. This real estate construction boom
awarded to more competitive Chinese firms (Ofori,
spans from high-end residential estates and shopping centres
2012). The most recent review of who wins World Bank
to low-cost housing and provides employment opportunities
contracts demonstrates that, as a result of China’s growth,
along the whole construction value chain, in both the formal
the contracts awarded to Chinese firms increased at the
and the informal sectors (Owusuaa, 2012).
expense of African companies between 1995 and 2003.
Finally, the oil finds in south-western Ghana have
The same report recommends a restructuring of Bank
boosted construction nationally, owing to the Government
procurement processes with a view to furthering local
of Ghana’s investment of oil revenues in strategic
construction development as existing ‘domestic preference’
projects. Oil revenues have been allocated to investment
policies have proven ineffective (Zhang and Gutman,
expenditures in the national budget, including construction
2015). The Association of Road Contractors suggested that
and infrastructure projects throughout Ghana (Armah-
the government oblige foreign contractors to sublet 25%
Attoh, 2015). Contractors are therefore optimistic about
of work to local firms with known capability. However,
there being a positive impact on construction from oil and
this has not happened (Laryea, 2010). The state also plays
gas production (Laryea, 2010).
a major role in financing minor road development, but
domestic contractors face significant problems caused by
arrears and late payments (Ofori, 2012). 3.5Sustainable materials and construction
Sustainable construction is in its infancy in Ghana.
Ports and harbours
Interviewees for this paper stressed that, while there is
As Ghana’s economy continues to expand into the middle-
growing interest in sustainable construction materials,
income bracket, there is increasing demand for improved
price and cost-effectiveness are the primary concern. Some
transport infrastructure. Also, Ghana’s port is one of the
stakeholders also suggested there was interest among
more cost-effective entry points for goods into West Africa,
artisans in using local materials more, not least for cost
reasons, and that some already did so – more so in rural of young people. In particular, it is likely to appeal to
areas, where construction relies on traditional methods. those who cannot afford to postpone income-generating
Government has sought to increase production activities completely, but who are able to delay realising
of locally made building materials, for example by their full earning potential so as to increase their future
strengthening institutions such as the Building and Road income. In other words, it may not be the best option
Research Institute (BRRI), but this has had limited for those who can afford further secondary or tertiary
effects (Arku, 2009). One of the outcomes of this is the education. It may be more suited to young people who
development of a blended cement that can be used instead need to earn some money but can afford a reduced income
of costly imported cement, which is frequently in short in order to further their education.
supply in Ghana. In general, there remains a preference
for imported building materials over proven alternative Local firms and artisans in residential and municipal
local materials, and the inadequate utilisation of local sub-sectors
raw material resources remains a key challenge facing The acute shortage of urban housing offers a potentially
the sector. Cement alternatives, for example, have not sizeable employment opportunity for young people
been widely adopted. This may owe in part to inadequate and certainly the biggest foreseeable growth area in
existence of and compliance with government standards construction. If this opportunity is to be fully realised,
that would allow contractors and artisans to trust new, however, a number of policy changes are required (see
locally produced materials (Ahmed et al., 2014). Section 5 for more details). Residential construction is
Given that older master craftspeople may be more set not only promising for the sheer scale of demand, but
in their ways in terms of materials and techniques, there also an important source of jobs for Ghanaian youth.
is a role for young artisans in pioneering sustainable This is because a large proportion of residential and even
construction techniques and use of materials. The most some municipal and commercial building construction
critical barrier to sustainable construction is the lack of happens in the informal sector and is small-scale and
capacity of the construction sector to actually implement accessible to artisans and smaller domestic firms. These are
sustainable practices (Djokoto et al., 2014). also the enterprises that offer the most employment and
training opportunities to young people. Opportunities for
employment and training in formal sector construction are
3.6Trainee and apprentice- much more limited.
level employment in The building of affordable housing is conducted entirely
construction by local firms, and inputs are also produced and supplied
Young people, as a demographic, have a particular profile by local artisans. This means linkages into the rest of
that means they will be better placed to access certain the construction sector and domestic economy are much
opportunities over others. As a result of their age, they stronger, particularly to those parts of the economy that
have less experience, but also smaller social networks and are most likely to offer opportunities for young people.
fewer political connections. However, they not only have Affordable housing construction, therefore, has exceptional
less social capital, but also usually have lower levels of potential in terms of providing young artisans with
financial and physical capital, which means a number of meaningful employment.
opportunities available to others are beyond their reach. Municipal building construction also forms an important
Young people’s access to opportunities is particularly part of business for small and medium-sized construction
constrained by their inability to pay for training and the firms in Ghana, and these businesses are an essential
tools needed for artisanal work (GSS, 2013). However, as training provider for young artisans. Funding for schools,
they are more mobile and able to work for lower wages hospitals and religious institutions comes from a range of
than their more established competition, they may benefit public,
from other types of opportunities. non-profit and private (including individuals) sources and
generates an important amount of work in the sector. In
Apprentice-level wages rural areas in particular, there is often explicit focus on using
There is significant unmet demand for skilled artisans, local labour, so municipal buildings can offer an important
which translates into a wide range of meaningful area of employment generation for young artisans.
employment opportunities for young people. Given the
frequently cited preference for white-collar jobs among Large foreign contractors in state-funded infrastruc-
Ghana’s youth, the question of which groups of young ture projects
people might be attracted to construction needs to be In those sub-sectors that are dominated by large domestic
considered. Earnings in the sector – as reported by skilled and particularly international firms, opportunities for
tradesmen – are respectable, but the incomes of young people are far fewer. This is the case for many
apprentices are below those young people can expect in state-funded infrastructure projects. In road construction,
other sectors (such as mining, health and social work, rural and non-tarmac construction is generally managed at
agriculture, etc.). As such, construction is likely to appeal the municipal level, and this is the area in which domestic
to a sub-group
construction firms and unskilled labourers are most likely domestic construction projects. The pattern of large foreign
to win contracts. Occasionally, young people also engage in contractors delivering work and domestic firms receiving
informal road construction, for example by repairing holes short-term and more menial sources of employment is
in the road and seeking compensation for their efforts from common across the transport infrastructure sub-sector, and
passing drivers. increases with the level of complexity of the construction
However, the involvement of domestic construction project concerned. So, for example, this is a particular issue
firms in large-scale infrastructure projects is limited. As a with the construction of ports, oil refineries or airports.
result, the opportunities for local artisans are also modest, In addition, access to opportunities on large-scale projects
and generally confined to those with a great deal more tends to require political connections as well as access
experience and skills than younger artisans tend to have. to finance, which excludes many local contractors, but
These construction projects also tend to provide fewer especially young people.
opportunities for the training of artisans, unlike smaller
4 Entry points into
construction for
youth
Unlike in other sectors, such as agriculture, the knowledge training is the informal apprenticeship. There is a long
and skills necessary to work in construction are usually tradition of apprenticeships in the construction sector,
not taught in the family. As a result, the majority of young
people who transition into construction employment do
so through some form of training – whether formal or
informal, theoretical or practical. This section outlines
the different entry points available to young people in
Ghana and how these shape their opportunities in the
construction sector.

4.1Informal apprenticeships
The precise nature of the skills gap in Ghana’s construction
sector is unknown. However, that there is significant unmet
demand for skilled artisans is beyond doubt: according
to an International Labour Organization (ILO) study, the
number of skilled artisans in Ghana almost halved between
1960 and 1984, from 70,571 to 37,258 (Offei-Nyako et
al., 2014). More recent trends appear to have compounded
this with a reduction in the number of young people
enrolling in vocational training centres: between 2006 and
2008 alone, 4,000 fewer people enrolled in construction-
related vocational courses. Young people are choosing
other sectors, as construction is perceived as badly paid
and unsafe work (Offei-Nyako et al., 2014).
The implications of these figures are confirmed by
constructors, who complain of the difficulty of finding
adequately skilled artisans for their firms (Fugar et al.,
2013). As construction is a labour-intensive industry, low
skill levels have resulted in low productivity and poor-
quality infrastructure and buildings, while inadequate
technical or managerial competences mean projects are
comparatively slow and expensive (Fugar et al., 2013).

Apprenticeships and training

There are two main ways in which Ghanaian artisans
gain experience to allow them to work in the construction
industry: through formal training at technical colleges,
schools and polytechnics and through formal or informal
apprenticeship schemes.

Apprenticeships
According to interviewees, the most important form of
and one in four Ghanaian apprentices is to be found
in construction. Apprenticeships are arranged
individually by young people and their guardians,
who go to see
the artisan they wish to be apprenticed to with a gift of
schnapps and a training fee, usually in the range of GHC
200-400 (between $50 and $100). Most commonly, the
apprentice will then be trained for three years and will
work for an additional year as payment to the master
craftsperson. Particularly talented apprentices might
be taken on by their master as a salaried employee,
where the master has the capacity to do so (UN-
Habitat, 2011). Apprentices are also responsible for
purchasing the tools and protective clothing they will
need (Owusuaa, 2012). Once training and payment are
deemed completed, the apprentice is expected to pay
another small sum to his teacher (around GHC 50 or
$12) and to organise a graduation ceremony. Only then
is the apprentice deemed fully qualified (UN-Habitat,
2011).
Throughout the training, the apprentice’s pay will
vary depending on the master craftsperson’s financial
position. Sometimes, this takes the form of a daily
payment; other times, apprentices are paid in kind,
usually in the form of food and board. According to the
focus group discussion, apprentices are occasionally
engaged on an informal basis only, working and learning
only when there is work on hand. Apprentices are not
granted any formal certification. Workers are, therefore,
limited in their search for employment if they have only
informal training. COTVET is currently exploring options
to issue certificates that take into account skills acquired
on the job to address this issue.
In the artisan focus group discussion, several artisans
indicated that they took on apprentices, but with
varying degrees of ease and success. One said his
apprentice had completed technical school and wanted
to get hands-on experience. Others said they found both
the teaching and the financial responsibility for an
apprentice difficult, as they needed to be taught and fed
whether there was work or not. Young people, on the
other hand, are often not willing to spend years as
apprentices, as they want to start earning money. The
artisans interviewed indicated that, more and more,
young people had less interest in learning their trades
and were sometimes more focused on earning money as
quickly as possible. For master craftspeople, it can be a
sacrifice to take on an apprentice and it can be a risk
because of the costs incurred.
 Likewise, embarking upon an apprenticeship is not lobbying and direct engagement with government. Others
without its risks for young people, as they have only are much smaller. There is a great deal of fragmentation
imperfect information on the quality of training they will of artisans’ associations, which means they have not
receive from their master artisan. If they are lucky, their scaled up and their impact is limited as a result. The study
master may have attended technical school and can teach noted no associations with a particular focus on young
them the theoretical as well as the practical components people, mostly because they are organised according to
of their trade. If they are unlucky, their master may be less components of the construction sector.
skilled or concerned with the quality of the training they The Ghana Real Estate Developers Association
are imparting. Interviewees indicated that younger artisans (GREDA) was formed in 1988 with World Bank and
may be stifled by the limitations of their master if that UN Development Programme sponsorship as a result of
person has had limited practical or theoretical training, or is reforms to privatise the housing sector and was intended
unwilling to learn. Furthermore, given the informal nature to take the place of public housing development agencies,
of apprenticeships and the lack of contracts and legal which were in financial distress at the time (UN-Habitat,
recourse, young people face the risk of exploitation in the 2011). It aims to promote the development of residential
form of long apprenticeships or working hours (ILO, 2008). estates and increase the stock of housing units, to ensure
adequate provision of affordable housing (Awuvafoge,
Changes to the apprenticeship system 2013). GREDA membership has grown considerably since
A number of factors have led to changes in the its beginnings, fuelled by the growth in private sector real
apprenticeship system. First, artisans are increasingly estate construction firms. It now includes a number of
able to secure work without having validation from a international real estate companies from the UK, the US,
master craftsperson, so they do not necessarily see an South Korea, Saudi Arabia and India and has expanded
apprenticeship as a prerequisite to a construction sector operations from Accra and Kumasi to Takoradi, following
career. This is particularly the case in urban centres, where the discovery of oil (Awuvafoge, 2013).
there is growing demand for labour in construction. AAG was established in 2011 and initially aimed to
Similarly, as social norms have shifted, particularly in create a job matching system (like an employment agency)
urban areas, the formalities of apprenticeships – whereby in addition to training young people and members in a
a young artisan’s family took on the burden of establishing range of basic skills for the workplace, such as information
the relationship and paying for a graduation ceremony and communication technology, maths, English, cost
– have become less necessary. Where there is no external estimation, worksite health and safety. It has also informed
requisite for apprenticeships, master craftspeople have its members of the benefits of formalising their businesses
been less willing to take on cost and responsibility for the and provided information on how to do this, for example
apprentice; instead, they can treat a young artisan like an on the process of registering with the Social Security and
employee or contractor (rather than providing them with National Insurance Trust (SSNIT) and setting up bank
lodgings, food and training). accounts. AAG has around 300 members, mostly in
Second, young people are increasingly going straight Greater Accra and the Volta region, where it undertook
into employment as they need to earn money to support its initial outreach work. It is expanding the geographic
themselves and their dependants as quickly as possible. reach of its membership base and is looking to set up an
According to interviewees, young people opt to work as investment pool of micro-lending through the association,
unskilled labourers rather than obtaining professional in recognition of the financing constraints its members face.
skills, because this does not entail upfront costs. It is worth noting here that the construction sector is
Finally, because of the increasing interest in and status poorly unionised: the largest union is the Construction
of formal, particularly academic, education, fewer young and Building Materials Workers’ Union (CBMWU). The
Ghanaians are choosing to pursue vocational training. CBMWU has been around since before independence,
There is a growing preference for polytechnic or university having been formed in 1954, but its membership has
rather than vocational courses, and some tertiary education been decreasing since the privatisation of state-owned
graduates do not want to work in the field. Artisans said construction companies, as the majority of construction
they preferred to work in white-collar jobs because of the workers became informal sector workers (Rosa Luxemburg
perceived status and lack of physical labour. Foundation, n.d.). However, levels of unionisation in
construction are comparative to the national average:
Professional associations approximately 7% of the workforce belongs to a union
The construction sector has a large number of industry whereas the figure is 6.6% for construction (DTU, n.d.).
associations and membership bodies through which More recently, the CBMWU has attempted to provide
individuals and small (often unregistered) firms build a union services to the informal sector, for example by
collective identity and voice, as well as sharing information signing a Collective Bargaining Agreement for both
and best practice. Some associations are strong and well formal and informal construction employees. This could
established, with national presence and a significant role in potentially increase the union’s influence in the sector.
4.2Vocational training institutions
West and Northern) have only six vocational training
Ghana has a diverse range of vocational training
institutions that offer construction-related courses and are
institutions, run by a number of training providers, which
registered with NVTI. As one might expect, Accra has the
makes the standardisation of technical qualifications and
largest number (26), followed by Volta (19) and Brong
quality control difficult. COTVET was established in 2006
Ahafo (10) (NVTI, n.d. a).
to formulate national policies on skills development across
The artisans interviewed for this study felt that technical
pre-tertiary and tertiary education in formal and informal
school curricula neglected certain practical aspects of the
sectors of the economy. It is also mandated to coordinate
construction profession, such as, for example, operating
and supervise the activities of public and private vocational
cranes. COTVET is aware that some of its training courses
training and education providers, including informal
are too theoretical and is attempting to address this by
sector apprenticeships. COTVET is responsible for issuing
assessing whether it is appropriate for attachments to
reports on the state of skills development in the country as
happen during or after training. The institution is also
well as advising government on all matters relating to the
supporting legislation that will recognise prior learning, so
management and improvement of technical and vocational
that people can be accredited for skills they have acquired
education and training (TVET) in Ghana (COTVET, 2015).
on the job, irrespective of their formal training. Both of
COTVET has recently made competency-based teaching
these initiatives are the result of an effort to stem the
compulsory for all TVET training providers. Certification
declining number of young people enrolling in vocational
has to be through a national TVET framework, which
training courses (Evanto, 2015).
COTVET has created. COTVET engages with a wide
NVTI offers skills certification, as well as training, for a
range of private sector actors, from small and medium
wide range of trades, including 18 related to construction.
enterprises to large industry, seen as fundamental to
These allow those trained in the informal sector to have
ensuring employment post-training. However, these links
their acquired skills tested and certified (NVTI, n.d. b).
are still in their infancy (COTVET, 2015). Nevertheless,
However, given the importance of social networks to
COTVET oversees private as well as public vocational
finding work in the construction sector, uptake of these
training provision.
services is limited.
There are any number of training models overseen
by COTVET: BRRI and a number of other research
institutions provide training in addition to research, 4.3Migration
although they struggle to raise the funds necessary to
Given the nature of Ghana’s economic growth and
provide it at acceptable price levels (which often means for
urbanisation patterns, there is much higher demand
free). Some colleges, such as the YMCA, generate funds
for artisanal skills in urban than in rural Ghana and
internally by using the students from their construction
in southern than in northern Ghana. Artisans in the
training courses to deliver contracts. These then cover the
construction sector are therefore migrating from villages
cost of their training and simultaneously provide them
in the north of the country to urban areas of the south
with practical work experience.
for employment. During the focus group discussion with
Despite the presence of vocational training centres
artisans from AAG, participants said they had moved to
across the country, artisans most commonly train in the
the Greater Accra region because there were no jobs in
informal sector, through apprenticeships. Regardless of
their villages. Wages are also higher in Accra, though the
whether they have had access to vocational training, most
cost of living is too.
young construction sector workers spend a period of
This does, however, create significant barriers to
time working with someone who is already established
construction employment for young people born in the
in the profession (a master craftsperson) before finding
north. Additionally, this means rural areas are covering
employment elsewhere or setting up by themselves. The
the costs of training young people but do not necessarily
formal technical and vocational training system has also,
benefit from their skills, even if they do benefit from their
in some cases, been accused of being far too theoretical,
remittances. According to interviewees, so many artisans
meaning students do not have the practical experience
have migrated to find work that it is very hard to find
necessary to find paid employment straight after their
skilled artisans for construction projects in the north. Some
training (interview). In some parts of the country, formal
firms said that, when they had contracts in the north, they
vocational training options in the construction trades are
take skilled workers from Accra with them.
very limited: the northern regions (Upper East, Upper
5 Barriers to young
people’s
participation
Beyond the difficulty of obtaining the necessary skills Formal financial institutions, on the other hand, consider
for artisanal work, young people face a number of other the majority of Ghanaians who rely heavily on informal
barriers to their entry into and their career progression sector jobs and have irregular or low incomes as
within the sector. The main difficulties young people
experience fall into three categories: access to finance, the
policy environment and the sector’s image.

5.1Access to finance
The biggest single barrier to young people’s participation
in the construction sector is the lack of adequate financing
for the sector in general and young people in particular.
Finance is a major challenge for all actors within Ghana’s
construction sector: domestic construction firms struggle
to access the finance necessary to benefit from larger
construction projects; artisans lack the financing necessary
to purchase tools and equipment; and urban Ghanaians
cannot access the loans and mortgages necessary to
translate the housing crisis into effective demand for new
dwellings. While private investment in construction has
been on the rise, this has gone primarily to the large-scale
enterprises that have the skills and assets to access formal
finance. The impact of this expansion in finance has not
been felt by small and medium-sized domestic firms (Osei,
2013). Finally, the government’s ability to borrow for
infrastructure projects is also limited by the recent
economic crisis and the conditionalities imposed by the
IMF.

Finance for housing construction

To date, the shortage of housing and sanitation
infrastructure, which is large even by urban African
standards, has not translated into effective demand.
Arguably the most important reason for this is the absence
of financing, which means housing cannot be built as
quickly and efficiently as necessary. Where mortgage
products are available at Ghanaian banks, these are
aimed at the few who can afford luxury properties. And
mortgages are also very expensive, charging interest rates
of around approximately 30%. The levels of financing
needed to build small urban family homes – in the range
of $10,000 to $18,000 – are too large for informal or
microfinance providers (UN-Habitat, 2011).
too high risk (Obeng-Odoom, 2011). This is
aggravated by the fact that many Ghanaians do not
hold formal titles over the land they own and so cannot
use it as collateral (Awuvafoge, 2013). The recent
proliferation of banks
and other financial institutions in Ghana has,
therefore, had minimal impact on housing sector
investment, and the building of homes continues to
be based largely on
informal financing, mostly savings, remittances and
finance from family members.
While there is a long history of borrowing for
business ventures, this does not extend to borrowing
for housing construction and land. The potential
mortgage market
in Ghana is perceived to be large, based on increases in
housing demand. The fast-growing insurance industry
in Ghana offers huge potential demand for mortgage-
backed securities, and there is a natural demand for
long-dated assets by domestic institutions with long-
dated liabilities (Boamah, 2010). GREDA estimates that
only 5% of
those who want to own a house can do so only
through their own savings, indicating huge potential
for mortgage markets in Ghana (Tandon-Offin et al.,
2013)
Consecutive governments have made various
efforts to address this problem: starting in 1987, the
Ghana
Investment Promotion Centre (GIPC) introduced a
number of measures to increase private investments in
housing.
This included a five-year tax moratorium, exemptions
from import duties and the ability to transfer profits
overseas.
These were abandoned when it became clear they only
benefited developers building luxury property for
wealthy Ghanaians (UN-Habitat, 2011).
The Home Finance Company (HFC) was established
in 1990 with a World Bank contribution of $10 million
and an SSNIT assistance fund of $16.4 million, with
the aim of providing long-term funds for a sustainable
housing financing system (Arku, 2009). Initially, it was
financed by the Government of Ghana, Merchant Bank
and SSNIT and operated in the secondary market to
provide liquidity to participating financial institutions.
HFC subsequently
moved to the primary financing market as a universal
bank as well as mortgage provider (Bank of Ghana,
2007).
Until 2006, HFC was the only mortgage provider in
the country. HFC Bank was mandated by the
government in 2007 to set up an affordable home
ownership scheme for public sector employees. It
allowed recipients to first buy land, then build on it and
finally to own it on repayment
of the loan (Awuvafoge, 2013). The Bank for Housing keep accounts and to apply for formal sector financing.
Construction, established by the Government of Ghana Microfinance for the construction sector is minimal but
in the 1980s to provide mortgage facilities to the working nevertheless an important lifeline: some trade associations
class, was liquidated in 2000 as a result of major fraud that provide micro-lending to their members, recognising how
wiped out its entire capital base (Awuvafoge, 2013). difficult it is for artisans to secure finance from formal
More recently, the government introduced the Home sources (Tomlinson, 2007).
Mortgage Finance Act of 2008, which created the legal
framework for lenders to foreclose on defaulting loans, Finance for small domestic firms
with the aim of encouraging the development of mortgage Several stakeholders interviewed pointed to the lack of
markets (Boamah, 2010). It seems this has had some available finance as a fundamental constraint on the
effect, at least at the higher end of the market, with an growth of Ghanaian construction companies and the major
increase in the number of mortgage products available, reason why large construction contracts are often awarded
some developed through real estate companies partnering to foreign construction firms. Ghanaian firms are unable to
with mortgage providers to facilitate the sale of properties secure adequate resources to build a portfolio of large-scale
(Awuvafoge, 2013). work that would allow them to bid for larger projects.
There are also now mortgage schemes that explicitly This problem is exacerbated by the extensive payment
target the diaspora. Stanbic Bank, for example, has delays experienced on government projects. Domestic
launched a new product in London to enable Ghanaians firms therefore struggle not just to grow, but also often to
living abroad to buy properties in Ghana while making survive, while foreign firms benefit from the majority of
payments from the UK (Ghanaian Times, 2014). publicly funded infrastructure projects.
Microfinance for housing is limited in Ghana but the
concept is increasingly being recognised as relevant. Finance for infrastructure
Currently three institutions provide microfinance for The recent decline in public resources for infrastructure
housing – HFC Boafo, Global Access and Sinapi Aba; projects and IMF conditionalities has led to increasing
Ghana Union Assurance provides a collateral replacement interest from the government in public–private
insurance (Ghana Housing Finance, 2016). Credit unions partnerships (PPPs) to deliver infrastructure projects.
have always encouraged their clients to borrow as a However, given that government lacks the capacity to
means of incrementally building houses, and ProCredit deliver PPPs, this is likely to limit their attractiveness to
plans to introduce a micro loan for housing (Tomlinson, private investors. In the transport and water sectors, for
2007). However, initiatives intended to foster a mortgage example, cost recovery has been unreliable. Further, PPPs
and housing finance market have struggled to achieve can be unappealing to politicians who want to retain
their aims due to macroeconomic instability. Ghana’s control of public assets for use as patronage (CEPA, 2015).
high interest rates have been particularly detrimental, as Despite these difficulties, eight PPPs have been created
they deter borrowers and increase the risk for lenders since 2005 in the energy, transport and water sectors in
(Tomlinson, 2007). Ghana, worth a total of $2.98 billion. Bank loans, on the other
hand, account for a very small proportion of the financing
Finance for artisans provided in the energy and water sector recently (CEPA,
The lack of a well-functioning mortgage market for these 2015).
types of dwellings has an indirect impact on artisans in
the construction sector in the form of reduced demand
for their services. For example, the UN estimates that 5.2Policy environment
constructing the homes needed to improve living standards There is a widespread perception among actors in
in urban Ghana would result in the creation of another construction that government does not recognise the
150,000 to 200,000 jobs, many of which would be for importance or the needs of the sector (e.g. Ofori, 2012)
artisans (UN-Habitat, 2011). Artisans are also affected and that this is evidenced by the absence of a ministry
directly by the lack of finance, as they cannot easily borrow responsible and the lack of a sector-wide development
money with which to purchase tools or to be able to policy or strategy. Where government is involved in
complete dwellings for sale to individuals. construction, it subjects contractors to such delays in
Banks and other lenders typically require collateral, payment that domestic firms often cannot afford to bid for
which many small and micro-firms and individual artisans public contracts. Furthermore, stakeholders interviewed for
do not have. There are few innovative products to enable this study indicated that corruption and nepotism affected
lenders to provide loans in the absence of assets and credit the construction sector more than others. This prevents
ratings. A further constraint is on the side of small firms the participation of young people who do not have the
themselves: artisans lack the financial skills required to necessary connections or funds.
Formal and informal education and training
construction sites. This includes not only overseeing the work
Unreliable quality of construction training in general but also ensuring artisans stick to their area of
professional competence and do not informally conduct work
The unreliable quality of training is a well-known problem
in other areas. Better oversight would ensure construction
in the sector, and one that lies with both formal training
projects are carried out by an integrated team made up of all
institutions and informal apprenticeships. A more general
relevant professionals and artisans (Djokoto et al., 2014).
problem exists within the education system at primary and
secondary level, which does not equip young people with Lack of government oversight and coordination
the critical thinking skills that allow them to problem- Interviewees felt government could do more to look at
solve on the job. Thus, productivity in the sector remains certification (such that graduates of vocational training
low, as does the level of workmanship and technical are awarded recognised certificates, and that these
and managerial competence (Fugar et al., 2013). Given certificates are required in the workplace) and ensure
the extensive forward and backward linkages of the standards of practice are met during training and required
construction sector, this skills gap has the potential to hold by employers. Further, vocational training stakeholders
back Ghana’s economic development.
indicated there was a lack of innovation in the skills and
There has also been an increase in migrants arriving
courses being delivered by vocational training providers.
in Ghana from surrounding Francophone countries with
There are also considerable problems in coordination
superior artisanal skills and a willingness to work for
between government departments, which affects the quality
lower wages than their Ghanaian counterparts. Finishing
of training available to young people. A report prepared
was cited as a skill that Ghanaian artisans lack, while their
by the Ministry of Youth and Sports in 2013 states that
Togolese counterparts, for example, are known for having
the Ghana Youth Employment and Entrepreneurial
superior finishing skills. One stakeholder indicated that
Development Agency has ‘inadequate capacity for
skills gaps were particularly severe in key growth areas,
vocational and entrepreneurial schemes’ and is concerned
such as high-rise building construction.
about the ‘apparent duplication of the efforts of COTVET
Artisans also spoke of the need for continued
and Skills Development Fund, Local Enterprises and Skills
professional development and training that could be
Development Programme, NVTI and the Department of
combined with work. There is currently no such training for
Social Welfare’. The lack of clarity with regard to who is
artisans after they have completed their initial vocational
responsible for certification has important implications for
training or apprenticeship, meaning older artisans have
artisans’ training.
limited or no access to new techniques and equipment. One
artisan suggested people be compelled to go for training Land tenure issues
and professional development every three years.
One of the principal difficulties facing the construction
Most construction firm owners are said to be more industry in Ghana is the problem of ensuring land supply.
interested in immediate benefits than long-term returns.
This is the result not so much of an absolute shortage of
Thus, such enterprises are not normally inclined to invest land as it is of issues of access and tenure. Approximately
in human capital development. Insufficient and erratic
80% of Ghana’s land is communal land vested in
workflow coupled with irregular payment for work chieftaincies, and communities hold land through allodial
completed has exacerbated the reluctance of construction
titles. Individuals may acquire the right to use this land,
firms in Ghana to invest in human capital development but tenure is neither secure nor usually documented
(Fugar et al., 2013). The high mobility of construction
(USAID, n.d.). This is further complicated by the fact
sector employees is a further disincentive for training and
that land in Ghana is managed through overlapping legal
development, as it is easy for other companies to poach
systems – a formal, modern system that operates alongside
trained employees (Fugar et al., 2013).
a system in which chiefs allocate land. The implications for
Paradoxically, a number of studies have concluded
the construction sector are that investments in property are
that one of the ways for employers to reduce mobility is likely to be lower where land tenure is insecure.
by training their employees, as this engenders
It is not uncommon for land to have been subject of
commitment. However, this also means firms have to be
litigation on more than one occasion, particularly in
in a position to offer permanent contracts and to pay
Accra where land is most valuable (Tomlinson, 2007).
competitive wages, or there is an element of
In addition, a variety of overlapping administrative
compulsion to the duration apprentices have to work in
arrangements for land mapping, management, titling,
exchange for their training (Fugar et al., 2013). One
conveyancing and deed registration complicate matters
stakeholder suggested making
further (Tomlinson, 2007). Banks consistently raise land
it compulsory for firms to provide on-the-job training ownership and titling problems as a major barrier to
in order to reduce the risk of some firms free-riding and mortgage lending (Tomlinson, 2007).
poaching trained employees.
While the state owns or otherwise administers a
An area of skills training that has not received
significant proportion of rural land in many African
sufficient attention is that of management and oversight of
countries, the Ghanaian government owns only about In addition, training programmes are being designed
20% of land; the remaining 80% is held by customary and rolled out for small-scale enterprises in the sector.
authorities for the benefit of their communities (USAID, Government also stipulates that, where possible, preference
2016). Customary land is managed through a diverse must be given to Ghanaian goods and service providers.
tenure system. In broad terms, however, tenure systems in The government also supports the provision of skills
the three northern regions of Ghana (Northern, Upper East training and the development of financial products for the
and Upper West) differ considerably from in the rest of small-scale sector (Government of Ghana, 2010).
the country: lower levels of urbanisation mean traditional
practices continue to dominate and land is less frequently Enforcement of quality standards
sold. In contrast, landowners in the south are more likely Ghana does have a Standards Authority, but construction
to register their land with the state to improve their tenure standards are not reliably enforced. This has resulted in
security. Most large-scale investors are outsiders and slower development of the local manufacturing sector,
must therefore acquire land from the relevant customary which has led to a large percentage of building materials
authority before they can use it (Tomlinson, 2007). being imported, even where local resources are available
Young people face particular difficulties in securing and frequently cheaper (Osei, 2013). The construction
land, partly because they lack capital but also because the sector
inheritance traditions for customary land mean they are in Ghana relies heavily on the use of blocks and reinforced
unlikely to have access to land, as it is still under ownership concrete rather than alternative building materials that
of their parents or uncles (in matrilineal inheritance can be produced locally and are more environmentally
systems). This is significant for construction artisans’ sustainable (Djokoto et al., 2014). Such materials would not
capacity to initiate projects in their villages, and means they only be produced locally, thus encouraging the development
lack collateral to raise finance for other activities. of the local construction sector, but also come from small-
scale local firms, which use labour-intensive technologies.
Lack of transparency in government contracting These firms provide a disproportionate percentage of
There was virtually unanimous agreement among employment and training to young people.
interviewees that problems with government construction
contracts limit the sector’s growth and young people’s
opportunities within it. Government contracts are known 5.3Perceptions of the construction sector
for lacking transparency in terms of how they are awarded Interviewees felt that work in the construction sector was
and, once awarded, government does not pay for services not associated with high social status, which deters young
rendered in a timely fashion. Both of these factors limit people. Such negative perceptions about construction jobs
the development of the domestic construction sector and as a career choice cut across gender but are considerably
the ability of domestic firms to upskill, grow and compete. more pronounced for women. Contrary to actual earning
According to one interviewee, government contracts have potential, the perception is that construction is less
become less transparent and payment delays have gotten lucrative than other professions. Several of the artisans
worse in recent years. It is not unusual for a company to interviewed said they would not have chosen construction
wait 18 months or longer for payment. as their preferred profession, but their families decided
As it is well known that government payments are this for them. These same artisans said they would have
rarely timely, domestic firms are reluctant to bid for preferred to continue to tertiary level education but could
government contracts and only very large, usually not afford to do so. As one said:
international, enterprises can afford to bid for and benefit
from the large-scale construction projects funded by ‘Our attitudes towards construction workers should
government. These firms, as discussed, are also the ones change. A country cannot develop without construction.
least likely to train apprentices and provide opportunities People should learn to value artisans in this country’.
to young people, beyond casual and/or manual labour
contracts. Government funds are therefore not providing
the maximum benefits in terms of linkages into the local
Women in construction
economy or training provision. For women, working on a construction site means risking
Beyond the question of timely payments, there is much sexual harassment as well as having to fight the perception
government could do to facilitate Ghanaian firms winning that women are simply not physically strong enough
construction bids. One does not need to look far for for the work (Owusuaa, 2012). One artisan confirmed
possible policy solutions: the government has that women faced difficulties breaking into construction
implemented a national mining policy with the aim of professions: ‘When I was at school, we had two ladies
ensuring small Ghanaian enterprises are not sidelined. This in my class, but they exchanged courses to social science
distinguishes between small and larger operations; those because they were teased.’ The gender disparity among
deemed construction workers is therefore not surprising: in 2012,
small operations are reserved for Ghanaian companies. just under 320,000 people were employed in the sector.
Of these, only 8,998, or just under 3%, were female.
Where women work in the construction sector, they tend Box 2. Women in construction in the UK
to work in less prestigious and less well-paid positions: The dominance of men in the construction sector is
in the formal construction sector they are employed as by no means a Ghanaian phenomenon. In the UK,
secretaries; in the semi-formal sector they work as caterers; women account for just 11% of the construction
and on informal construction sites they are employed to workforce and only 1% of workers on site. In
carry water (Owusuaa, 2012). Box 2 highlights that this some construction professions, the number of
situation is not unique to Ghana’s construction sector. women is so low that the NSO has declared them
Anecdotally, there is some evidence of women ‘unmeasurable’. In fact, women’s participation in
participating in higher-profile and higher-skilled the construction sector in the UK has been declining
since the 1980s.
construction professions, such as surveying and
However, there are some interesting lessons
architecture. As the only female professional interviewed
from the projects and programmes that have been
for this study, a representative of the Young Surveyors implemented in the UK:
Organisation of Ghana said she thought a lack of female
role models contributed to the problem, as did the
perception that women work on interiors, not out in the • Women need to be made aware of the range
open on construction sites. This is evidenced by YIEDIE’s of opportunities available in construction long
difficulties in recruiting young women for courses other before they make their career decisions or begin
than interior design. their apprenticeships. Speaking to young girls in
schools is one way of doing this.
• Providing training programmes to young women
without additional support is insufficient.
Without further mentorship programmes, young
women tend to leave the sector.
• Simply increasing the number of women in
construction will not lead to a change in culture:
those women who work in the sector assimilate
into the culture and do not encourage more
women to join them.
• The most successful programmes focus on
transforming the culture of the sector and its
approach to women. Where the sector’s culture is
not transformed, the number of women working
in the sector will decline once programmes come
to an end, as has happened in the UK.

Source: Munn (2014).

6 Implications
for Youth
Forward
This review of Ghana’s construction sector has provided or informal education, into the sector. This means questions of
an overview of the context within which Youth Forward, skills certification and quality standards in education become
specifically YIEDIE, operates in the country. From this central to their success in a way they are not in agriculture,
follow a number of implications for the initiative.
Ghana’s construction sector is a growth industry
with employment potential. First and foremost, Ghana’s
construction sector is a growth industry that has the
potential to employ a large number of young people and,
most importantly, to offer skilled work and a decent living
standard to those who are able to access training. The
urban housing sector, comprising both the construction
of new dwellings and the upgrading of existing houses,
has the potential to provide work for a very large number
of young people. However, the large but unmet need for
urban housing in this sub-sector has not been translated
into effective demand, given the absence of finance for
housing construction and problems with both the access to
land and the security of its tenure. Beyond training young
people and providing them with the finance they may need,
Youth Forward has an important opportunity to bring
about indirect change by working with government and
finance institutions to ensure better access to finance as
well as secure land tenure.
Relationship building between government and
local business is key to sector growth. Ghanaian
firms, particularly small and medium enterprises that
are responsible for training the majority of artisans
are
similarly constrained through their access to finance and
government contracts. Even where they are able to access
finance, they frequently cannot compete for government
contracts, given the very long payment delays experienced
by all contractors. An important aspect of Youth Forward
and its implementing partners’ work is therefore to
build relationships with government on its collaboration
with local firms to foster the growth of the domestic
construction sector.
Entry of young people into the sector relies on skills
certification and access to finance. Construction differs
from the agriculture sector – which traditionally employed
most young people – in that skills are not passed down
generations within families. Instead, young people and their
guardians need to find entry points, usually through formal
for example. Similarly, families are not able to pass
on the capital necessary to start a construction or
artisanal business in the way that might happen in
agriculture through the inheritance of land. In both
cases, there is a
role for government to play in ensuring the least
disruptive transitions for young people. This involves not
only certifying their educational qualifications but also
facilitating their access to finance. Youth Forward can fill
this gap to some extent, but government collaboration will
be essential.
Design of training should take into account the
kinds of young people who will be attracted to
construction. The unique characteristics of the
construction sector also determine the kinds of young
people who will be attracted to construction and to
investing in an apprenticeship.
As discussed in Section 3.5, young people who cannot
afford to remain in school, but are able to forego some
of their income-earning potential in order to invest in
their education, would be well suited to an
apprenticeship.
Young people who choose apprenticeships may
not to be able to afford unpaid employment or
training
opportunities. This should be considered in the design
of training opportunities in order to minimise attrition
rates.
YIEDIE should collaborate with government to
influence policy. To maximise the impact of Youth
Forward’s work in the construction sector, there are a
number of other areas in which YIEDIE will need to
collaborate with government to influence the policy
environment. Of particular importance is collaboration
with COTVET and the Ministry of Education to facilitate
the certification and standardisation of qualifications for
artisans. Equally, quality control and reliable standards
for building materials and inputs are poorly developed,
which holds back innovation (e.g. through increased use
of low- cost, environmentally friendly local materials)
and prevents small-scale input producers from accessing
markets.
Training should inform and incentivise young
people on safety at work. Construction remains a risky
business throughout the world, but particularly so in
Ghana, where the regulatory framework is inadequate
and there are no mechanisms to enforce health and
safety guidelines. In the
absence of such government regulation, the emphasis
needs to be on persuading artisans and construction
workers
to ensure building sites are safe. Training courses
should therefore provide both the incentive and the
information needed for young people to improve their
safety at work.
Different approaches that persuade young people of the to stay, mentorship programmes are required throughout
value of health and safety should be developed and trialled their careers with a focus on career progression. Ensuring
in a rigorous way. young women have networks that encompass other women
Construction trainees should undertake gender- they can turn to for advice and support has also been
sensitivity training. As the UK’s experience has shown, helpful. Most importantly, however, has been transforming
persuading women to take up opportunities in the the culture of the sector as a whole. One way of doing this
construction sector is not as simple as providing training would be to include gender-sensitivity training for all of
opportunities and reducing barriers to entry. If they are YIEDIE’s trainees.
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Appendix 1. List of interviewees

Organisation Interview date

African Concrete Products 15 October 2015
Artisans Association of Ghana 2 November 2015
Association of Building and Civil Engineer Contractors of Ghana 2 November 2015
Association of Road Contractors 14 October 2015
Batimat Gh. Ltd 5 November 2015
Building and Road Research Institute 30 October 2015
Comet Properties Ltd 6 November 2015
Consar Ltd 16 November 2015
Council for Technical and Vocational Education and Training 3 November 2015
Federation of Associations of Ghanaian Exporters 12 November 2015
Ghacem 16 October 2015
Ghana Business and Finance Magazine 19 October 2015
Ghana National Association of Vocational and Technical Institutes 2 November 2015
Gibson Construction 3 November 2015
Ghana Real Estate Development Association 12 November 2015
Helmet News 6 November 2015
Lakeside Estates 5 November 2015
Ministry of Employment and Labour Relations 4 November 2015
Ministry of Water Resources, Works and Housing 4 November 2015
National Vocational Training Institute 2 November 2015
Opportunity Industrialization Centre 6 November 2015
Proko Ghana Ltd. 14 October 2015
Saitama Enterprise 6 November 2015
Taysec Ltd. 15 October 2015
Young Surveyor’s Organisations 12 October 2015
Appendix 2. Artisans Association of Ghana:
focus group discussion participants

Name Gender Job

Nicholas Male Electrical Engineer
Has Male Fabricator
Kojo Male Mason
Alfred Male Electrical
Technician
Abednego Male Electrician
George Male Mason
Gameli Male Electrician
Paul Male Carpenter
Ofori Male Plumber
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