Accra, Ghana, June 29th, 2012: IFC, a member of the World Bank Group, is investing $4.4 million in a Ghanaian real-estate development company building a three-storey commercial center that will meet a growing demand for office and retail space in Accra.
The investment in A&C Development Company Ltd will provide an urban foothold for small and medium enterprises that have trouble gaining access to commercial venues.
A&C’s new commercial center will be located in a rapidly growing suburban area of East Legon in Accra, representing an expansion of the existing commercial and retail complex, known as A&C Square.
As Ghana becomes an important business destination in West Africa, IFC’s investment will contribute to broad economic development. Ghana’s economy has been expanding at a high level, with growth touching 13.6% in 2011. Demand for office space is fueled by the influx of foreign investors and increasing numbers of local companies.
A&C Square already has a waiting list of over 45 potential tenants for office space, a majority of whom are small and medium enterprises working in a range of sectors, from telecommunications to healthcare services. The new building will also provide additional retail space in Accra to complement the already existing retail establishment. The only other retail establishment in operation in the city is the Accra Mall.
Andrew Asamoah, the CEO of A&C Development Company, said: “The need to expand is a result of the growing need for office and retail facilities to meet the continuous expansion of the East Legon community. IFC’s support is most important to A&C to meet its vision, goals, and aspirations.”
The construction project will provide business opportunities for local suppliers of food, construction materials and services. IFC will work closely with A&C Development Company to ensure international environmental, health and safety standards at the site.
Mary-Jean Moyo, IFC Country Manager for Ghana, said: “As entrepreneurship and consumer incomes grow in emerging economies like Ghana, so does demand for business infrastructure. The A&C building will provide a one-stop shopping center for consumers in Accra, and also serve as a platform for retail space for small and medium businesses, catalyzing local employment.”
IFC has greatly expanded its investment services and advisory services in Ghana in recent years. Priorities in Ghana include support for infrastructure, agribusiness and small and medium businesses. In the fiscal year ending June 30, 2012, IFC invested $497 million in key sectors such as infrastructure, agribusiness, manufacturing and financial services.