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Commercial Outlook

Renewable Energy Initiatives

Following the signing of Ghana's first mining lease for lithium exploitation, Atlantic Lithium expects to make the mine operational within 24 months of Parliament's approval. Parliament is expected to ratify the mining lease in the course of the year, to pave the way for the development of the mine.

 

 

Commencement of Exploration Activities in the DWCTP Block

On the sidelines of the COP28, the government announced that GOIL Upstream Ghana Limited (GOIL) and Planet One Group had signed a farmout agreement and joint operating agreement in connection with the assignment of interests in the Deepwater Cape Three Points (DWCTP) block to Planet One Group. Planet One Group and GOIL are expected to start exploration activities as soon as the deal is approved by the government in fulfilment of their contractor duties under the petroleum agreement. Following ExxonMobil's departure from the project, there have been no exploration activities on the block . Planet One Group's acquisition of stakes and anticipated investments in the block is good news for the industry, which has begun to experience diminishing levels of production.

 

Combination of the Jubilee and TEN Gas Sales Ggreements

Upon completion of the negotiation of the deal terms, the Jubilee partners are expected to execute a gas sales agreement with GNPC to combine the gas sales agreements in respect of the associated gas productions from the Jubilee and Tweneboa Enyenra Ntomme (TEN) fields. The combined gas sales agreement would require an amendment and update to the gas utilisation plans in the existing plans of development for the Jubilee and TEN fields. A successful conclusion of the combined gas sales agreement would ensure that Ghana meets its fuel needs for power generation and other industrial purposes.

 

Development of the Pecan Field

Following the AFC’s acquisition of major stakes in the DWT/CTP block which houses the Pecan discovery, an updated plan of development and operation was presented and approved by the government. The development of the field is, therefore, expected to commence leading to a projected pour of first oil in 2026.

 

Given the recent dwindling levels of investment and activity in greenfield projects in the industry, the development of the Pecan field is expected to revitalise and bring a much-needed boost to the industry.

 

Commencement of Infrastructural Projects

The government’s intended areas of focus for infrastructure development include water resource management; management of protected areas; coastal and marine erosion; provision of transport infrastructure; information and communication; construction industry development; drainage and flood control; infrastructure maintenance; rural and urban development management; and disaster management.

 

Affordable Housing Projects

It is expected that the Ministry of Works and Housing will complete administrative processes for the commencement of work on the National Affordable Housing Project at Dedesua in the Ashanti Region. Furthermore, the government may provide free unencumbered land and infrastructure at the site while procuring construction companies to build and sell the housing units to members of the public.

 

The Dedesua project will complement ongoing affordable housing initiatives including the construction of housing units under the Security Services Housing Programme, the Kpone Affordable Housing Programme, and the Revised National Affordable Housing Programme at Pokuase.

 

 

Health Sector Infrastructural Projects

Government is expected to continue ongoing projects in Ghana’s health sector such as the construction of the Urology and Nephrology Centre of Excellence at Korle Bu Teaching Hospital and the construction of hospitals across the country. Following the renegotiation of the contract terms for the La General Hospital project, the project is expected to finally kick-off.

       

Construction of Engineered Sanitary Landfills and Materials Recovery Facility

The detailed engineering design, and environmental and social impact assessment reports of the proposed landfill in the Ga West Municipality is at the final review stage. It is expected that the proposed construction of the Engineered Sanitary Landfill and Materials Recovery (ESLMR) facility under the Greater Accra Resilient and Integrated Development (GARID) Project will commence. Similarly, we expect that the proposed construction of the ESLMR facility under the GARID Project in the Ga East Municipality will begin, in addition to the routine dredging of the Odaw basin.

 

Reconstruction of the Accra-Tema Motorway

The concession agreement for the reconstruction of the Accra-Tema Motorway through a public-private partnership with the Ghana Infrastructure and Investment Fund (GIIF) has been negotiated and will be submitted to Parliament for approval.  The project involves strengthening 4 concrete lanes and building 6 urban highway lanes on the motorway; reconstructing the highway from Tetteh Quarshie to Apenkwa; remodeling the Tetteh Quarshie, Apenkwa, and Achimota interchanges; building new interchanges at Lashibi, Abattoir, Teshie Link, Fiesta Royale, and Neoplan junctions; and constructing pedestrian footbridges, toll plazas, and streetlights.  The government is expected to invest US$380 million in  the project.

 

Development of Tema Arterial Roads

Preparatory works are expected to commence for the development of Tema arterial roads to improve the Tema Hospital Road to serve the expanded Tema Port.

Legal/Regulatory and Policy

Financial Institutions
& Capital Markets 

1.

In this section, we discuss new and expected reforms in tax and the potential impact on related sectors as well as programmes and measures in the energy, extractives and infrastructure sectors. We also highlight key legislative reforms including the amendment of the GIPC Act, 2013( Act 865) and the NPA Act, 2005(Act 691) and the enactment of bills such as the Ghana roads Authority bills and the Rent Bill.

Contacts

Seth Asante

Managing Partner 

Seyram Dzikunu

Partner

Elizabeth Ashun

Partner

With ever increasing regulation, businesses are expected in 2024 to shift towards the implementation of sustainability strategies with pressure from stakeholders to demonstrate progress. A focus on transparency and accountability underpins the latest legislation, which seeks to combat greenwashing, corporate crime, and human rights abuse, calling attention to the impact business has on people and planet. In the UK, the audit and corporate governance reforms are starting a new chapter.

The articles in this theme aim to help navigate the landscape for governance and sustainability in 2024. The articles in this theme aim to help navigate the landscape for governance and sustainability in 2024.

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