Security analyst and Vice Chairman of the Ghana Chamber of Construction Industry, Adam Bonah says there is an urgent need for the establishment of a construction bank to save the construction industry from collapse.
He indicated that the establishment of the bank will afford stakeholders the opportunity to control how much interest rates the banks must charge.
According to Mr. Bonah, monies to be paid to contractors for the execution of projects could also be paid through the bank.
Mr. Bonah who was speaking at the Ghana Construction Industry Excellence Award complained about the challenges some local construction companies go through, adding that they are ready to dialogue with the government and international investors to find lasting solutions to such issues.
“Earlier we used to have the bank for housing and construction, so it will not be out of place to have a construction bank that has the welfare of contractors at heart. We as industry players will put our resources together and make sure a construction bank is established.”
“If that is done, we have the power to control how much interest rates the banks must charge other than leaving it in the hands of private investors who are only here for the profit,” Mr. Bonah said in a Citi News interview.
He indicated that major challenges local construction companies face have to do with the lack of resources to execute various projects and the late payment of certificates.
Mr. Adam Bonah added that the lack of support for the local construction companies at the expense of foreign ones is also a major challenge, adding that they are ready to dialogue with government and international investors to ensure that local companies are given priority.
“One major challenge we face as an industry is that we are given some ratings against the foreign companies, which is bad. But we believe the establishment of the construction bank will provide financial support for the local companies will be of immense help. We are also ready to dialogue with the government in that direction,” Adam Bonah added.
The Chief Executive Officer of the Ghana Chamber of Construction Industry, Emmanuel Cherry, believes it is time for organisations to take advantage of the Africa Continental Free Trade Area to their benefit.
“We have a whole lot of construction companies in Ghana and I think it is time for us as construction companies to take advantage of the Africa Continental Free Trade Area to help us as industry players because we deserve it. But we need to ask ourselves if we have the financial capability to embrace this opportunity. That is why we have gathered here to see the way forward,” CEO of the Ghana Chamber of Construction Industry told Citi News.
According to him, bringing members of the construction industry together under one umbrella will help strengthen their frontiers for the greater good.
“We have decided to come together, build capacity and make sure that our capacity can be matched to that of the expatriates. We believe the construction industry can turn around the economy of this country without the help of expatriates,” Emmanuel Cherry said.
Several industry players were honoured at the awards night, which was graced by Vice President Dr. Mahamudu Bawumia.