Ghana is ranked 2nd in Private Public Partnership pipeline projects in West Africa with a cumulative market size of $8.4 billion.

According to Fitch Solutions. Nigeria leads the market with $9.6 billion in pipeline projects.

It said the huge market size reflects Ghana’s strong legislation, which it says bodes well for Private Public Partnership development over the coming years.

Again, it pointed out that Ghana has made significant progress in financing PPP projects despite a sophisticated planning and legal structure.

Established in 2014, the Ghana Infrastructure Investment Fund, a sovereign wealth fund with $325 million in equity, operates independently from government-control to facilitate private infrastructure investments.

“Although 70% of its involvement is in the form of loans, it also pursues equity investments. Moreover, the 2020 PPP Bill established a Viability Gap Facility, which provides additional grants and guarantees to private investors. In this, it closely cooperates with international development partners”.

“Combined, these steps to boost financing availability for PPP projects will be supportive of project development in the future, given particularly the importance of financing for PPP project development”, it explained.

Fitch Solutions added it expects government support to continue for PPP development in the market, potentially leading to further improvements over the coming years. This is due to the country’s positive long-term political stability outlook

“Building on the steps seen in terms of both the PPP framework and financing availability, we expect government support to continue for PPP development in the market, potentially leading to further improvements over the coming years. This follows from Ghana’s positive long-term political stability outlook coupled with the generally shared political consensus among the main parties to maintain a supportive environment for PPP investments”.

“Furthermore, the push towards alternative funding sources in infrastructure development will be strengthened by the county’s difficult fiscal position. As we forecast budget constraints to persist over the medium-term, investors are expected to encounter positive conditions for brown- and greenfield investments”, it added.