Reconstruction of Kumasi Central Market in Ashanti, Ghana update

US$ 211M for Phase 2 Implementation of Kumasi Market Redevelopment Project in Ghana

After financing the initial phase of the Kumasi Market Redevelopment Project in Ghana back in 2019, Deutsche Bank AG has announced the closing of a new lending facility to finance the second phase, together with the UK Export Finance Agency (UKEF) and African Export-Import Bank (Afreximbank).

According to the German multinational investment bank and financial services company headquartered in Frankfurt, the facility is close to US$ 211M of which slightly over US$ 166M is supported by UKEF and the rest by Afreximbank.

Deutsche Bank acted as the sole structuring bank and mandated lead arranger for the two loans.

What prompted redevelopment of the market

Kumasi Market is the largest market in the West African region serving not only Ghana’s Kumasi region but also acting as a magnet for traders from neighboring countries e.g. Benin and Togo.

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Before the start of its redevelopment project, the market comprised more than 12,000 stores and stalls, with a footfall of around half a million people per day. However, regular fire outbreaks led to the destruction of the stalls and loss of livelihoods prompting its redevelopment.

The overall construction contract was awarded to Contracta Construction UK Limited. The project has been split into three phases to minimize disruption in the Kumasi business district and to ensure the market continues operating at all times.

Expectations for Kumasi Market Redevelopment Project phase 2

According to Alarik d’Ornhjelm, the Head of Structured Trade & Export Finance for the Middle East and Africa at Deutsche Bank, the second phase of the Kumasi market redevelopment project will boost economic activities and provide social benefits to the local community.

The initial phase of the project, according to Harriet Thompson, the British High Commissioner to Ghana, has already had a positive impact on the businesses and families of stall owners and market traders, many of whom are women, and the community within the market at large.

Background

Kumasi Central Market is an open-air market in the city of Kumasi, the capital of Ashanti. It’s a major trading centre which is visited by up to 800,000 people daily from Ghana and the surrounding countries of Benin and Togo.

The reconstruction, will cover a total construction area of over 172,197m2, total leasable area of 52,701m2 and 44,594m2 parking spots for cars and vans. The main structure of the building will be pre-manufactured steel structure and beams.

Kumasi Central Market is designed to promote economic growth, to boost tourism and to encourage socio-economic development by improving connections to the north of Ghana. The market is set to feature 6,500 spaces to lease, 5,400 cold stores, 800 kiosks, 50 restaurants, 210 stalls for fishmongers and butchers and a 40 livestock stalls, a police station, fire station, post office, a hospital among others. Moreover, the project will create 900 direct and 2500 indirect jobs.

President Akufo-Addo noted that the central market when completed would not only address and prevent the underlying causes of fire outbreaks but would provide better conditions for mobility in the area, allow traders to receive their merchandise and customers to access the market safely in a convenient manner.

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Phase 1

The opening of the nearby completed Kejetia Market and lorry terminal, the first phase of the project allowed about 8,400 market women at the Kumasi Central Market and the occupants of the old Kejetia shops who have been validated and verified by the Kumasi Metropolitan Assembly (KMA) to start doing business there.

Phase 2

Phase two of the Kumasi Central Market project commenced in 2019. President Akufo-Addo presided over the ground breaking ceremony.

The mega project estimated to cost US $278m, is being constructed by Messrs Contracta Construction Company of the United Kingdom (UK) while the Bank of Germany are the financiers. British steel was appointed as named as the structural steelwork subcontractor by Contracta, in association with UKEF.

Reported in 2015: Redevelopment of Ghana’s Kumasi Market set to kick off at a cost of $298m

Back in 2015 we reported that the redevelopment of Ghana’s Central Kumasi market and kajetia Lorry terminal is set to kick off at a cost of $298 Million. The project which is expected to be constructed in three phases will be carried out by Brazil’s leading Construction firm Contracta Engenharia Limited with financing being done by the Brazilian government.