As part of efforts to improve the country's construction sector, the Ministry of Trade and Industry has signed a Memorandum of Understanding (MoU) with key development and building permitting institutions in Ghana.

This collaboration aims to create a Unified Digitized System for Development Permit Administration, addressing critical challenges in the permitting process. It marks a shift from working in isolation to a coordinated approach among institutions.

The institutions include the Lands Commission, Environmental Protection Agency, Ghana National Fire Service, Land Use and Spatial Planning Authority, Greater Accra Regional Coordinating Council, and the Ministry of Local Government, Decentralization, and Rural Development.

Speaking at the signing ceremony in Accra on October 29, 2024, Kofi Ahenkorah Marfo, the Deputy Minister for Trade and Industry, in a statement on behalf of the sector minister, Kobina Tahir Hammond, emphasized the importance of collaboration to improve the construction sector.

“As you may already be aware, the construction sector is one of the most regulated sectors with several institutions involved. The multiplicity of institutions involved in the administration of permits exposes the process to challenges such as bureaucratic delays, which lead to increased construction costs and loss of value. Additionally, there are difficulties in data accessibility for processing and poor coordination between permit processing institutions,” the minister said.

He also mentioned that the construction sector has become increasingly data-intensive, coupled with the inability to manually handle hundreds of submissions.

K.T Hammond stated that institutions must coordinate with stakeholders towards appropriate data management solutions.

He also acknowledged the support from the World Bank, particularly through the Ghana Economic Transformation Project.

“Their involvement underscores the importance of automating the permitting administration process, which is crucial for creating a conducive business environment,” he concluded.

Meanwhile, a roadmap for the system's implementation has already been approved by the Steering Committee of Heads of Permitting Institutions, ensuring that timelines for various activities will be adhered to rigorously.

Additionally, the Trade Ministry said it is optimistic about finalizing the Terms of Reference to initiate procurement processes for the new system, especially as population growth continues to strain existing systems.

Background:

According to a 2016 KPMG competitiveness report, construction costs and permitting processes rank among the top factors influencing entrepreneurs' decisions on business locations.

By improving turnaround times and streamlining the permitting process, the new digitized system aims to enhance institutional collaboration, optimize resource use, and ensure greater transparency and efficiency.

MA