Ghana on Monday signed a concession deal with South African-based African Investment SkyTrain consortium to develop its train system.
The deal is meant to cover a project called the Accra SkyTrain Project. A memorandum of understanding was signed last year.
On the sidelines of the ongoing African Investment Forum in Johannesburg, officials from Ghana and the South African based consortium finalized a deal for the project which will cost $2.6 billion.
The deal was signed by Ghana’s Railways Development Minister, Mr Joe Ghartey and Mr Hubert Danso, Director of AI SkyTrain Consortium Holdings.
The signing ceremony was witnessed by Ghana’s President Nana Akufo Addo, and Dr Akinwumi Adesina, President of the African Development Bank (AfDB).
Ghana is hoping Accra SkyTrain Project would help reduce the increasing traffic congestion in the capital Accra.
President Akufo-Addo said after the signing of the agreement that “This is happy day for Ghana and its people”.
He was excited about how the Africa Investment Forum is attracting the needed investment into Africa for valuable development.
Nana Akufo Addo said the project was purely commercial and had no government guarantee backing it.
“This is a purely private arrangement; the government of Ghana would not give any guarantees,” he said.
Dr Adesina from the African development bank commented saying the deal was significant because it is, “Africa to Africa investment”.
“We in the African Development Bank are excited about the project…we are delighted, it’s a great day for Ghana, it is a great day for the AfDB, and it will bring happy moments to Ghana,” he said.
The project is expected to create some 5,000 direct jobs during the construction phase and could rise to over 10,000.