Ghana government urged to tap local capital market for future port expansions

Mr. Samson Asaki Awingobit, the Executive Secretary of the Importers and Exporters Association of Ghana, has urged the government to explore local funding options for future port infrastructure projects, such as the proposed Keta port.  

He suggested that the government could raise funds from the local capital market by issuing shares on the Ghana Stock Exchange, to ensure Ghanaians had a stake in such projects.  

Speaking in an interview with the media on the sidelines of the maiden Ghana Transport and Logistics Fair (GTLF) 2025, in Accra, on Friday, Mr Awingobit said, by tapping into the local capital market, Ghana could potentially reduce its reliance on foreign financing and ensure that more of the benefits from port operations remained in the country.  

He cited the Tema Port expansion project, which was undertaken by private company, Meridian Port Services (MPS), indicating that it had proven to be a lucrative venture, generating significant revenue from container handling charges, rent, and other fees.   

The Tema Port Expansion was funded through a mix of loans and investments from several international institutions and banks at a total cost of $1.5 billion.  

Key financiers included the Bank of China, which provided $231 million, Industrial and Commercial Bank of China (ICBC), contributed $144.3 million and International Finance Corporation (IFC), iinvested US$195 million, marking its largest port investment in sub-Saharan Africa.  

The Dutch Development Bank (FMO) and Standard Bank also participated as co-financiers.  

Mr. Awingobit noted that MPS had likely recouped its $1.5 billion investment and would continue to make substantial profits over the 25-30 year contract period.  

He, therefore, questioned why the government did not opt to raise the funds locally, arguing that Ghanaians would have been willing to invest in the project if given the opportunity.  

“When you invest into port infrastructure, you will never go bankrupt, you will never lose,” he said.   

“The number of containers we are making, maybe 800,000 containers that we are making in Ghana here, today we are making, as we speak, the last time I checked in July, we had made over 1.5 million containers, and the year has not yet ended. So, it tells you that we are hitting two million TEU (Twenty-foot Equivalent Unit) or so, or more coming.  

“So, if you open to raise the shares here, Ghanaians will buy, students will even buy, workers will buy, so we’ll pay dividend to them,” Mr. Awingobit stressed.  

The GTLF, organised by the Ministry of Transport in collaboration with Digital Eye, was aimed at showcasing innovation, as well as attracting investment and promoting collaboration to redefine the country’s transport and logistics sectors.  

It was on the theme: “Resetting Transport Sector for Connectivity, Innovation and Investment.”  

Mr. Awingobit commended government for its efforts to digitalise the country, indicating that it had significantly reduced goods clearance time, enhanced efficiency and reduced demurrage.  

“We have top-notch technology and IT solutions that we are using in clearing our cargo. Before it came, we used to take, let’s say, two weeks or even more just to get a tax bill to go and pay a duty at the port and clear.  

“So AI and IT solution or the investment in technology has really, really come to reduce the length of the demurrages that we used to pay… Now, if you want to pay demurrage, then it’s you,” Mr. Awingobit said.  

Mr. Eric Dunebo Ang-numbaala, Planning Officer at the Ghana Maritime Authority, expressed the Authority’s commitment developing the country’s ports into a smart or green ones, indicating that over the past few years, a number of projects and programmes had been taken aimed at positioning the country as the leader in green transition in the maritime space.  

“GMA, or Ghana for that matter, is standing tall above contemporaries within the subregion. We want to maintain this and even go further. It is in this regard that we have started what we call the National Action Plan on Green Shipping,” Mr. Ang-numbaala, said while contributing to a panel discussion at the Fair, on Friday.  

A smart port or green port is a modern port that incorporates advanced technologies and sustainable practices to minimize its environmental impact, enhance operational efficiency, and improve overall performance.   

Source: GNA  

The post Ghana government urged to tap local capital market for future port expansions appeared first on Ghana Business News.

Read Full Story