Works Minister Advocates for Structured Subcontracting to Empower Local Contractors

Accra: The Minister of Works and Housing, Ahmed Ibrahim, has emphasized the importance of utilizing projects under the Big Push Infrastructure Programme, including the Accra-Kumasi Highway and the 24-hour economy, not only to develop physical infrastructure but also to empower indigenous businesses and create employment opportunities. He highlighted the necessity for a deliberate subcontracting system that allows smaller Ghanaian firms to participate in major projects, thereby gaining essential skills, technology, and experience for growth.

According to Ghana Web, the Minister made these remarks at a Stakeholders' Consultative Forum on Structured Project Contracting and Subcontracting, organized by the Ghana National Chamber of Construction Industry. During the forum, he underscored the dual focus on both infrastructure development and the enhancement of local business capacity. 'Are we simply building infrastructure? Or are we also building the capacity of Ghanaian enterprises to deliver the infrastructure of tomorrow? For us, the answer must be both,' he stated.

Ahmed Ibrahim further elaborated that subcontracting should be more than just allocating smaller portions of major contracts to local firms. Instead, it should serve as a strategic tool for skill development, technology transfer, and enterprise growth. 'So, subcontractors should not simply be a mechanism for assigning smaller portions of work to local firms. It should be deliberately used for capacity building, skills transfer, technology acquisition, and enterprise development,' he explained.

The Minister urged local contractors to form partnerships and consortiums to enhance their technical and financial capabilities. He stressed the need for better access to working capital, equipment financing, guarantees, insurance, and timely payments. 'Our contractors need access to working capital,' he emphasized, advocating for improved procurement and contracting arrangements to support local participation while ensuring transparency, value for money, and quality.

He also called on international contractors and investors operating in Ghana to support local firms through joint ventures, technology transfer, and the integration of Ghanaian companies into their supply chains.