The Government of Ghana has announced decisive interventions to resolve significant delays in the redevelopment of the Kumasi Central Market (Kejetia Phase II) and the Takoradi Market Circle projects. These vital infrastructure projects, costing a combined total of over €305 million, experienced stalled progress since 2024 due to the non-payment of Interim Payment Certificates (IPCs).
The delays led to contractors demobilising from both sites. Mr. Ahmed Ibrahim, Minister for Local Government, Chieftaincy and Religious Affairs, stated that these projects are crucial economic hubs. They support thousands of traders, artisans, transport operators, and small-scale businesses in Kumasi and Takoradi. The government's intervention aims to reaffirm its commitment to completing these long-delayed developments.
This situation fits into a broader pattern of projects facing funding challenges and delays in Ghana's infrastructure development landscape. Earlier debt restructuring policies contributed to accumulated suspension claims, exacerbating project costs and timelines. The government's focus on these projects underscores its commitment to critical urban infrastructure. It also aims to mitigate the negative economic impact on regional capitals.
Mr. Ibrahim revealed that the Kumasi Central Market project, awarded in 2018 with an initial contract sum of €248 million, had reached 58.22 percent completion. More than €171 million has already been paid. However, outstanding certified payments and suspension claims have increased the revised project cost to about €305.3 million. The Takoradi Market Circle project, a €48 million development that began in 2020, reached 81.62 percent completion before its suspension. Over €41 million has been paid to contractors, with more than €6 million still outstanding.
Completing these projects is essential for boosting local economic activity and increasing revenue for metropolitan assemblies. It will also create jobs and support the proposed 24-hour economy policy. The government plans to secure the necessary financing, re-engage contractors and technical teams, and strengthen monitoring mechanisms. This will ensure value for money and timely completion. These actions will affect local businesses, traders, and the broader economic outlook for both cities.
The delays have worsened congestion, created unsafe trading conditions, and reduced trader incomes. They also led to the underutilisation of public investments. The government's pledge to resolve these issues signals a renewed focus on economic revitalization. Further engagement with trader associations and local authorities will ensure smooth project execution. This approach seeks to mitigate any potential disruptions during the restart of construction activities. The Minister assured traders and residents that their concerns had been heard and addressed.
The Kumasi Central Market's Phase I was completed after works began in 2014 under former President John Dramani Mahama. This historical context highlights the long-term nature of these significant urban redevelopment efforts. The current administration's commitment to Phase II, despite inherited challenges, emphasizes the importance of continuity in national development initiatives. The timely completion will restore economic vitality and improve livelihoods in these critical Ghanaian cities.