By Albert Derrick FIATUI & David King BOISON (Dr)
Ghana’s strategic location along the Gulf of Guinea positions it as a natural gateway to West Africa’s bustling maritime trade. With over 90% of global trade transported by sea, the importance of efficient ports and robust legal frameworks for entry and exit cannot be overstated.
According to the United Nations Conference on Trade and Development (UNCTAD), Africa accounts for about 7% of global maritime trade, with West Africa handling the lion’s share of containerized cargo.
This makes the optimization of Ghana’s maritime sector critical to regional economic development. Despite its potential, Ghana faces challenges in leveraging its maritime assets. Cumbersome legal processes, prolonged clearance times, and inefficiencies at ports contribute to delays and increased costs.
For instance, the World Bank’s 2022 Logistics Performance Index ranks Ghana 106th globally, highlighting the need for improved trade facilitation and infrastructure. Addressing these challenges is imperative for the country to maintain its competitive edge in maritime trade.
At the heart of this discussion lies the Tema Shipyard, a facility with immense untapped potential to drive Ghana’s maritime transformation. Historically used for vessel repairs and maintenance, the shipyard has the capacity to evolve into a regional leader in shipbuilding. With the global shipbuilding and repair market valued at $126 billion as of 2022, Ghana has a unique opportunity to position the Tema Shipyard as a hub for constructing vessels like tugboats, fishing trawlers, and even cruise ships.
This article argues that by streamlining legal entry and exit processes and modernizing the Tema Shipyard, Ghana can unlock unprecedented economic opportunities. These changes will not only attract investment and boost trade efficiency but also create thousands of jobs and cement the nation’s leadership in Africa’s maritime economy.
The new government has an unparalleled opportunity to champion this transformation, ensuring that the Tema Shipyard becomes a cornerstone of Ghana’s economic growth and industrial development.
The role of legal entry and exit in maritime trade
Efficient legal entry and exit processes are fundamental to the success of any maritime trade system. These processes facilitate the smooth movement of goods and vessels while safeguarding against illegal activities such as smuggling and trafficking. In Ghana, however, inefficiencies in these systems have created significant bottlenecks, leading to increased operational costs and missed revenue opportunities.
Ghana’s ports, including the Port of Tema, handle approximately 70% of the country’s trade. Yet, lengthy documentation requirements, fragmented customs systems, and inconsistent regulatory enforcement contribute to persistent delays in cargo clearance.
According to the World Bank, it takes an average of 92 hours to clear imports at African ports, compared to just 48 hours in Europe and Asia. Such delays can raise shipping costs by up to 30%, undermining Ghana’s competitiveness in the global trade arena.
For instance, while the introduction of the Integrated Customs Management System (ICUMS) in 2020 aimed to address inefficiencies, gaps in coordination among customs, immigration, and port authorities remain, perpetuating costly delays. These inefficiencies translate into additional costs for traders, including demurrage and storage fees, which reportedly account for 15–20% of the total cost of shipping in Ghana.
The economic implications of delayed entry and exit processes are profound. According to estimates by the Ghana Revenue Authority (GRA), inefficiencies at ports result in approximately $500 million in annual revenue losses. Moreover, traders incur significant indirect costs, which ultimately burden consumers.
By contrast, global ports that have streamlined their legal processes experience substantial growth in trade volumes and revenues. Singapore, for instance, processes over 37 million TEUs (twenty-foot equivalent units) annually through its efficient ports, generating billions in revenue. In comparison, Ghana’s ports handle just over 1 million TEUs, highlighting the untapped potential of optimizing legal processes at its ports.
Streamlining legal entry and exit processes in Ghana’s ports represents a transformative opportunity to enhance trade efficiency, reduce costs, and boost government revenue. One critical aspect is the adoption of advanced technologies such as artificial intelligence (AI) and blockchain, which enable real-time tracking and automated customs clearance. Integrating all port stakeholders onto a single digital platform would eliminate redundancies and improve coordination.
Equally important is the need to harmonize regulatory frameworks. Simplifying documentation requirements and standardizing processes across customs, immigration, and port authorities can significantly reduce delays and improve efficiency. Furthermore, investing in capacity building is essential.
Training port officials in modern trade facilitation techniques and collaborating with international organizations, such as the World Trade Organization (WTO), can strengthen Ghana’s alignment with global trade facilitation agreements.
Global examples underscore the transformative power of efficient legal processes in maritime trade. Singapore’s TradeNet system, which processes over 90% of customs declarations electronically, reduces clearance times to under 10 minutes.
Similarly, Rotterdam, Europe’s largest port, leverages AI-driven systems for real-time monitoring, enabling it to handle over 460 million tons of cargo annually with minimal delays. These success stories demonstrate how streamlined legal processes can position ports as critical enablers of trade efficiency and economic growth.
Efficient legal entry and exit processes are not merely administrative necessities; they are strategic drivers of economic development. For Ghana, reforming these systems will unlock the full potential of its ports and maritime economy.
Coupled with the modernization of the Tema Shipyard, such reforms will ensure that Ghana emerges as a leader in maritime trade, driving regional economic growth and global competitiveness.
- Tema Shipyard: A strategic asset in Africa’s maritime economy
The Tema Shipyard, strategically located on the Gulf of Guinea, stands as one of Ghana’s most significant maritime assets. Its geographic positioning at the heart of West Africa’s trade corridor provides a natural advantage, offering easy access to key regional and international shipping routes.
Historically established to service vessels operating along Ghana’s coast, the shipyard has the potential to be a transformative force in Africa’s maritime economy if adequately retooled and modernized.
Currently, the Tema Shipyard is underutilized, primarily serving as a repair and maintenance facility for medium-sized vessels. Its infrastructure, though functional, lacks the capacity to handle the growing demands of the global maritime industry. This underutilization has left Ghana reliant on foreign shipyards, particularly in Europe and Asia, for complex repairs and vessel construction.
The inefficiencies at Tema Shipyard are indicative of a broader regional challenge, as West Africa suffers from a lack of sufficient drydock facilities, forcing shipping companies to endure higher costs and longer downtimes for services conducted overseas.
However, the potential for transformation is immense. The global shipbuilding and repair market was valued at $126 billion in 2022, according to industry reports, with projections indicating steady growth driven by increasing trade volumes and the demand for newer, eco-friendly vessels.
Ghana’s participation in this market could yield substantial economic dividends. Through upgrading its infrastructure and capabilities, the Tema Shipyard could become a hub for shipbuilding and repair in West Africa, catering to the needs of regional operators and attracting international contracts.
One of the most significant opportunities for Ghana lies in leveraging the IPADA Africa Initiative, spearheaded by the African Diaspora Central Bank (ADCB). Under this initiative, Nigeria has already secured a $9 billion investment for the construction of six luxurious cruise ships, marking a milestone in Africa’s maritime renaissance.
This initiative represents a transformative funding model aimed at revitalizing the continent’s shipbuilding sector. Ghana, with its geographic advantage and the underutilized potential of the Tema Shipyard, is well-positioned to benefit from similar investments. Engaging the ADCB under the IPADA framework could enable the construction of luxury cruise ships in Ghana, with funding and technical expertise provided through a Build-Operate-Transfer (BoT) model.
The construction of cruise ships at the Tema Shipyard under the IPADA initiative could deliver several key benefits. First, it would diversify Ghana’s maritime economy, opening avenues in the lucrative global cruise tourism industry, which is projected to reach $45 billion by 2030.
Second, it would create a massive demand for skilled and semi-skilled labor, generating thousands of jobs in shipbuilding, design, and support services. Third, it would stimulate local industries by increasing demand for shipbuilding materials such as steel, electronics, and furnishings.
Modernizing the Tema Shipyard would involve significant investments in infrastructure. Expansion of drydock facilities to accommodate larger vessels, such as oil tankers, container ships, and cruise ships, is essential.
Additionally, advanced machinery, including automated welding systems, CNC machines, and heavy-duty cranes, must be procured to enable efficient and precise construction and repair processes. The shipyard must also integrate renewable energy sources into its operations, such as solar and wind power, to align with global sustainability trends and reduce operational costs.
The shipyard’s role in supporting Africa’s shipbuilding renaissance extends beyond infrastructure. It can serve as a center for technological innovation and workforce development. Partnerships with global shipbuilding firms can facilitate technology transfer and skill development among local workers.
In training engineers, technicians, and other maritime professionals, the Tema Shipyard can build a workforce capable of competing with global standards. These partnerships would also open avenues for constructing a variety of vessels, from tugboats and fishing trawlers to luxury cruise ships, further diversifying Ghana’s maritime economy.
Integration with legal and regulatory reforms for smoother entry and exit processes is critical to the success of the Tema Shipyard. Streamlined processes will not only reduce turnaround times but also enhance Ghana’s appeal as a destination for maritime services. For example, vessels opting for repairs or construction at Tema would benefit from efficient customs clearance, reduced bureaucratic hurdles, and faster project completion timelines.
The economic benefits of retooling the Tema Shipyard are profound. A fully operational and modernized shipyard could generate an estimated $600 million annually in revenue through ship repairs, construction contracts, and associated services.
Beyond direct revenues, the shipyard’s activities would create significant ripple effects, stimulating local industries such as steel manufacturing, electronics production, and logistics. Moreover, it is projected that the retooling of the shipyard would create 30,000 direct jobs and 70,000 indirect jobs, providing opportunities across various skill levels and driving inclusive economic growth.
In leveraging opportunities such as the IPADA Africa Initiative and investing in modernization, the Tema Shipyard can transition from its current underutilized state into a regional powerhouse for shipbuilding and repair. This transformation would reduce Ghana’s reliance on foreign facilities, foster regional trade integration, and position the country as a critical player in Africa’s maritime economy.
In capitalizing on its geographic advantage, investing in infrastructure, and implementing supportive legal reforms, Ghana can unlock the full potential of this strategic asset and set a benchmark for maritime excellence on the continent.
Shipbuilding renaissance: Unlocking economic potential
The global shipbuilding industry represents a $126 billion market, driven by increasing trade volumes, growing demand for modern vessels, and advancements in eco-friendly technologies. For Ghana, the Tema Shipyard offers a unique opportunity to tap into this lucrative market, creating a shipbuilding renaissance that could transform the nation’s maritime economy and establish it as a regional leader in Africa’s maritime sector.
The case for shipbuilding in Ghana
West Africa’s maritime industry is hampered by insufficient shipbuilding and repair facilities. Most regional shipping companies rely on European and Asian shipyards for vessel construction and maintenance, incurring significant costs and delays.
For instance, ships traveling from West Africa to Asia for repairs face downtime of up to 60 days, resulting in additional operational costs of up to $500,000 per vessel. Addressing this gap presents a massive opportunity for Ghana to attract these businesses to the Tema Shipyard.
Ghana’s strategic location along major shipping routes, combined with the capacity for modernization at the Tema Shipyard, positions the country to cater to regional and global demand for shipbuilding. In focusing on constructing smaller vessels, such as tugboats, fishing trawlers, and ferries, as well as luxury cruise ships, Ghana can diversify its maritime offerings and create a sustainable economic model for the shipyard.
Economic impact of shipbuilding
The retooling and modernization of the Tema Shipyard to support shipbuilding activities would yield significant economic benefits. A fully operational shipyard is projected to generate $600 million in annual revenue within five years of completion. This revenue would be derived from various streams, including:
- Contracts for constructing vessels such as cargo ships, fishing trawlers, and tugboats.
- Repairs and maintenance services for regional shipping companies.
- Export opportunities for newly constructed vessels to other African nations.
Moreover, the shipyard’s operations would create a ripple effect on the economy, stimulating demand in related industries. Local suppliers of steel, aluminum, electronics, and paint would experience increased demand, leading to the growth of small and medium enterprises (SMEs) in these sectors. Additionally, the shipyard would foster the development of a skilled workforce, with an estimated 30,000 direct jobs and 70,000 indirect jobs spanning roles in engineering, welding, logistics, and administrative support.
Leveraging the IPADA initiative for cruise ship construction
One of the most promising avenues for Ghana’s shipbuilding renaissance lies in the construction of luxury cruise ships under the IPADA Africa Initiative, funded by the African Diaspora Central Bank (ADCB). Nigeria has already secured $9 billion in investment under this initiative to construct six luxury cruise ships. By engaging with ADCB, Ghana can secure similar investments to build three additional cruise ships at the Tema Shipyard.
Under a Build-Operate-Transfer (BoT) arrangement, ADCB would provide funding for retooling the shipyard and constructing the cruise ships, while also deploying global experts to train local workers.
This model ensures no upfront cost to Ghana while positioning the Tema Shipyard as a center of excellence in cruise ship construction. Each cruise ship is estimated to cost $2.5 billion, with the investment recuperated through operations and tourism revenues over a 20-year period.
The cruise ship construction project would not only generate direct revenues but also boost Ghana’s tourism sector. With the global cruise tourism market projected to reach $45 billion by 2030, Ghana can position itself as a top destination for high-value tourists. Luxury cruise ships showcasing Ghana’s cultural heritage and natural beauty would attract international travelers, generating additional revenue streams for local businesses and enhancing Ghana’s global profile.
Sustainability in shipbuilding
As global demand shifts towards eco-friendly vessels, the Tema Shipyard must adopt sustainable practices to remain competitive. This includes constructing ships with hybrid propulsion systems, using renewable materials, and incorporating energy-efficient designs.
These practices align with international maritime standards and offer a competitive advantage in attracting environmentally conscious clients. Furthermore, integrating renewable energy sources into shipyard operations would reduce costs and minimize environmental impact. Solar panels, wind turbines, and wave energy converters can power shipbuilding activities, reinforcing Ghana’s commitment to sustainability.
Comparative analysis: Lessons from emerging shipbuilding nations
Ghana can draw valuable lessons from emerging markets that have successfully developed their shipbuilding industries:
- Vietnam: Through investing in workforce development and forming partnerships with global shipbuilding firms, Vietnam has grown into a major shipbuilding hub, exporting vessels worldwide.
- Turkey: The Tuzla Shipyard in Turkey leveraged technology transfer agreements and government incentives to establish itself as a regional leader in shipbuilding and repair.
- South Korea: While now a global leader, South Korea began its shipbuilding journey with government-backed investments and collaborations with global players.
These examples highlight the importance of strategic planning, public-private partnerships, and technology transfer in building a competitive shipbuilding industry.
Strategic recommendations
To unlock the economic potential of shipbuilding in Ghana, the following steps are recommended:
- Invest in modern drydock facilities, advanced machinery, and digital systems to enhance operational capacity.
- Secure funding under the IPADA initiative for cruise ship construction, leveraging the BoT model to mitigate financial risks.
- Encourage partnerships between the shipyard and local suppliers to maximize economic benefits within Ghana.
- Establish training programs in shipbuilding and related fields to create a pipeline of skilled labor.
- Implement eco-friendly technologies to align with global trends and reduce environmental impact.
Legal reforms to support shipbuilding and trade
Legal reforms play a critical role in creating an enabling environment for the success of shipbuilding and maritime trade. For Ghana to capitalize on the transformative potential of the Tema Shipyard, it must address the existing bottlenecks in regulatory frameworks that hinder efficiency and competitiveness. A comprehensive overhaul of legal processes, particularly those governing shipbuilding, vessel repairs, and entry and exit procedures, will position Ghana as a preferred destination for maritime trade and industrial activities.
Challenges in the existing legal framework
Ghana’s current maritime legal framework is fragmented, with overlapping responsibilities among key stakeholders, including the Ghana Ports and Harbours Authority (GPHA), the Ghana Maritime Authority (GMA), and customs authorities. These inefficiencies result in prolonged clearance times, inconsistencies in policy enforcement, and higher costs for shipping companies.
For instance, a World Bank report indicates that Ghana ranks 106th globally in the ease of trading across borders, largely due to delays in customs and port clearance processes. Additionally, there is limited regulatory support for the development of the shipbuilding industry.
Existing policies are heavily focused on port operations, leaving gaps in areas such as vessel construction standards, workforce training, and incentives for local and international investors. Without a clear legal framework to support these activities, the Tema Shipyard risks remaining underutilized, unable to fully contribute to Ghana’s economic growth.
Key legal reforms needed
To unlock the potential of shipbuilding and trade at the Tema Shipyard, Ghana must implement targeted legal reforms across three critical areas: trade facilitation, shipbuilding regulations, and investment incentives.
Trade facilitation reforms
The efficiency of legal entry and exit procedures at Ghana’s ports is essential for attracting vessel construction and repair contracts. Key reforms include:
- Simplification of Customs Processes: Streamlining documentation requirements and adopting harmonized procedures across customs, immigration, and port authorities.
- Digitalization of Port Operations: Implementing advanced technologies, such as blockchain and AI, to automate clearance processes and improve transparency. For example, blockchain could be used to verify trade documents in real-time, reducing clearance times by up to 50%.
- Compliance with International Standards: Aligning Ghana’s port regulations with global best practices, such as those outlined by the International Maritime Organization (IMO) and the World Customs Organization (WCO).
Shipbuilding and repair regulations
A robust legal framework specific to shipbuilding and repair activities is necessary to attract international clients and investors. Reforms should include:
- Standardized Construction Codes: Establishing technical standards for vessel construction and repairs to ensure compliance with international safety and quality requirements.
- Certification Processes: Developing certification programs for shipbuilders, engineers, and technicians to enhance professional standards and global competitiveness.
- Environmental Compliance: Introducing regulations that mandate eco-friendly practices in shipbuilding and repair, aligning with global sustainability goals.
Investment incentives
Attracting investment in the Tema Shipyard requires a legal framework that incentivizes both local and international stakeholders. Recommended reforms include:
- Offering tax breaks or reductions for companies investing in shipyard modernization, technology transfer, and workforce training.
- Establishing clear guidelines for PPPs to facilitate collaborations between government agencies, private investors, and international organizations.
- Designating the Tema Shipyard and surrounding areas as an SEZ, providing regulatory and fiscal benefits to attract industrial activity.
Lessons from global leaders
Countries with thriving shipbuilding industries provide valuable insights into the role of legal reforms in supporting maritime growth. For instance:
- Singapore: The country’s legal framework emphasizes streamlined trade facilitation, supported by digital platforms such as TradeNet, which reduces document processing times to under 10 minutes.
- South Korea: The government provides subsidies and tax breaks to shipbuilding companies, enabling the country to dominate the global market with a 44% share of shipbuilding orders in 2022.
- Turkey: The Tuzla Shipyard benefits from government-backed policies that encourage technology transfer and workforce development, making it a regional leader in shipbuilding.
Projected outcomes of legal reforms
The implementation of targeted legal reforms will have far-reaching benefits for Ghana’s maritime economy. Key outcomes include:
- Streamlined processes and a robust regulatory framework will enable the Tema Shipyard to generate an estimated $600 million annually from shipbuilding, repairs, and associated services.
- Reduced clearance times and digitalized processes will lower shipping costs by up to 20%, attracting more clients to Ghana’s ports.
- Legal support for shipbuilding and trade will drive the creation of 30,000 direct jobs and 70,000 indirect jobs, fostering inclusive economic growth.
- Compliance with international standards will position Ghana as a leading player in Africa’s maritime sector, attracting contracts from regional and global shipping companies.
Recommendations for implementation
To ensure the successful execution of these reforms, the following steps are recommended:
- A dedicated body comprising representatives from GPHA, GMA, customs authorities, and industry stakeholders to oversee the implementation of reforms.
- Partner with technology providers to deploy digital platforms for trade facilitation and regulatory compliance.
- Work with the IMO, WCO, and African Union to align Ghana’s maritime policies with global and regional frameworks.
Economic and social benefits of investing in Tema Shipyard
Investing in the modernization and expansion of the Tema Shipyard has the potential to deliver transformative economic and social benefits for Ghana. By leveraging its strategic location and the demand for shipbuilding and repair services, the shipyard can become a catalyst for economic growth, job creation, and regional trade integration. Beyond the direct economic impacts, the project will significantly enhance the livelihoods of communities and industries that depend on maritime operations.
Economic impact: Revenue generation and trade efficiency
The modernization of the Tema Shipyard is projected to generate substantial revenue through diversified activities, including shipbuilding, repairs, and associated maritime services. A fully operational shipyard is estimated to produce $600 million annually in revenue within five years of its transformation. This revenue will stem from contracts for vessel construction, maintenance services, and new ventures such as luxury cruise ship manufacturing under the IPADA Africa Initiative.
Additionally, enhanced trade efficiency resulting from a modernized shipyard will lower the operational costs of shipping in Ghana. A report by the World Bank indicates that reducing clearance delays and improving port infrastructure could cut shipping costs in West Africa by up to 20%. These savings would make Ghana a more attractive destination for regional and global shipping companies, increasing cargo throughput and positioning the country as a preferred maritime hub in Africa.
Job creation and workforce development
The investment in Tema Shipyard is expected to create significant employment opportunities, fostering inclusive economic growth. The project will generate an estimated 30,000 direct jobs across various skill levels, including engineers, welders, machinists, and administrative staff. Additionally, 70,000 indirect jobs will be created in associated industries such as logistics, steel production, electronics, and tourism.
The shipyard will also play a critical role in workforce development. Partnerships with global shipbuilding firms and technical institutions will facilitate technology transfer and provide training programs for local workers. These initiatives will not only equip Ghanaian workers with globally competitive skills but also create a pipeline of talent for the maritime sector. Special focus will be placed on youth and women, ensuring their inclusion in high-demand roles within the shipbuilding and maritime industries.
Industrial growth and economic diversification
Investing in the Tema Shipyard will have a multiplier effect on Ghana’s economy, stimulating the growth of related industries. Increased demand for shipbuilding materials, such as steel, aluminum, and advanced machinery, will boost local manufacturing sectors. Logistics providers will benefit from higher cargo volumes, while businesses in the electronics and technology sectors will find new opportunities to supply shipyard operations.
The project also aligns with Ghana’s broader goal of economic diversification. By establishing itself as a leader in shipbuilding and repair, Ghana can reduce its dependency on traditional exports like gold and cocoa. This diversification will strengthen the country’s economic resilience and contribute to sustainable development.
Social Impact: Improving livelihoods and community development
The social benefits of investing in Tema Shipyard extend beyond job creation. The project will uplift local communities by improving access to education, training, and infrastructure. For instance, the construction of new training centers and partnerships with educational institutions will empower individuals with skills that ensure long-term employability.
In addition to economic opportunities, the project will foster social cohesion by promoting equitable access to maritime jobs for underrepresented groups. Women and youth, in particular, will benefit from targeted programs designed to address barriers to entry in the maritime industry. Furthermore, the influx of economic activity in communities surrounding the shipyard will lead to improved living standards, as increased income levels stimulate local businesses and services.
Boost to tourism through cruise ship construction
The construction of luxury cruise ships under the IPADA Africa Initiative will open new frontiers for Ghana’s tourism industry. With the global cruise tourism market projected to reach $45 billion by 2030, Ghana is well-positioned to capture a share of this lucrative sector. Cruise ships built at the Tema Shipyard will serve as floating showcases of Ghana’s rich cultural heritage, attracting international tourists and generating additional revenue streams.
The integration of cruise ship operations with Ghana’s coastal tourism strategy will create opportunities for local businesses in hospitality, transportation, and cultural tourism. These synergies will enhance Ghana’s appeal as a destination, solidifying its position as a leader in Africa’s cruise tourism market.
Environmental sustainability and long-term benefits
The modernization of the Tema Shipyard will incorporate sustainable practices that contribute to environmental preservation. By adopting renewable energy solutions, such as solar and wind power, the shipyard will reduce its carbon footprint and align with global sustainability goals. Eco-friendly shipbuilding practices, including the use of recyclable materials and energy-efficient designs, will further enhance Ghana’s reputation as a responsible maritime nation.
In the long term, these sustainability measures will attract environmentally conscious clients and investors, reinforcing the Tema Shipyard’s competitiveness in the global maritime industry. Additionally, the environmental benefits of reduced emissions and cleaner operations will contribute to improved public health and a better quality of life for communities near the shipyard.
Regional integration and leadership
The transformation of the Tema Shipyard will strengthen Ghana’s position as a regional leader in maritime trade and shipbuilding. By catering to the needs of West African shipping companies and providing cost-effective alternatives to foreign shipyards, Ghana will foster greater regional trade integration. This aligns with the goals of the African Continental Free Trade Agreement (AfCFTA), which seeks to enhance intra-African trade and economic cooperation.
The shipyard’s success will also serve as a model for other African nations, showcasing Ghana’s ability to lead transformative projects that drive economic growth and regional development. By taking proactive steps to modernize the Tema Shipyard, Ghana can position itself as a beacon of maritime excellence in Africa.
Recommendations for government action
The transformation of the Tema Shipyard into Africa’s premier shipbuilding and repair facility requires strong leadership and decisive action from the government. By prioritizing infrastructure development, enacting supportive legal reforms, and fostering strategic partnerships, the new government in Ghana can position the Tema Shipyard as a catalyst for economic growth and maritime excellence. The following recommendations outline key steps for achieving this vision.
Prioritize infrastructure modernization
Modernizing the Tema Shipyard is foundational to its success. The government must allocate resources to upgrade the shipyard’s infrastructure, including expanding its drydock capacity to accommodate larger vessels, such as oil tankers, container ships, and cruise ships. Advanced machinery, such as CNC machines, automated welding systems, and heavy-duty cranes, should be procured to enhance the shipyard’s operational efficiency.
Additionally, renewable energy solutions, such as solar panels and wind turbines, should be integrated into the shipyard’s power systems to reduce operational costs and align with sustainability goals. Establishing these facilities will not only attract international clients but also ensure that the shipyard remains competitive in the global maritime industry.
Engage the African Diaspora Central Bank and IPADA Initiative
The government should actively engage with the African Diaspora Central Bank (ADCB) under the IPADA initiative to secure funding for shipyard modernization and the construction of luxury cruise ships. Nigeria’s successful $9 billion investment in six cruise ships demonstrates the potential of this initiative. A similar partnership with ADCB could enable Ghana to build three luxury cruise ships at the Tema Shipyard, creating jobs, boosting tourism, and diversifying revenue streams.
The Build-Operate-Transfer (BoT) model proposed under this initiative would ensure that the retooling of the shipyard and construction of cruise ships come at no upfront cost to Ghana. By leveraging this opportunity, the government can accelerate the shipyard’s transformation and position it as a key player in Africa’s maritime economy.
Implement comprehensive legal reforms
The government must enact legal reforms to streamline entry and exit processes at Ghana’s ports and create a regulatory framework that supports shipbuilding and repair activities. Simplifying customs procedures, adopting digital solutions like blockchain for real-time tracking, and aligning with international maritime standards will enhance trade efficiency and attract international clients.
Specific reforms to support shipbuilding should include establishing technical standards for vessel construction, providing certification for shipbuilding professionals, and offering incentives for eco-friendly practices. These measures will not only improve operational efficiency but also position Ghana as a leader in sustainable maritime development.
Foster Public-Private Partnerships
Public-Private Partnerships (PPPs) are essential for mobilizing resources and expertise to modernize the Tema Shipyard. The government should create an enabling environment for PPPs by offering tax incentives, streamlined regulations, and attractive terms for private investors.
Collaborating with global shipbuilding firms and technology providers will facilitate knowledge transfer, workforce development, and access to advanced technologies. In engaging private sector players, the government can reduce the financial burden of infrastructure development while ensuring that the shipyard remains competitive and innovative.
Invest in workforce development
The success of the Tema Shipyard depends on a skilled and motivated workforce. The government should establish training programs in partnership with technical institutions and international shipbuilding firms to equip Ghanaians with the skills needed for shipbuilding, repair, and related industries.
Special emphasis should be placed on empowering youth and women to participate in the maritime sector, addressing barriers to entry and ensuring inclusivity. Scholarships, apprenticeships, and on-the-job training initiatives should be prioritized to create a pipeline of talent for the shipyard.
Promote Ghana as a regional maritime hub
The government should actively market Ghana as a preferred destination for maritime trade and shipbuilding in Africa. Highlighting the strategic location of the Tema Shipyard, its modernized infrastructure, and its competitive advantages in trade fairs, conferences, and international forums will attract clients and investors.
Additionally, Ghana’s participation in regional initiatives, such as the African Continental Free Trade Agreement (AfCFTA), should be leveraged to position the Tema Shipyard as a hub for intra-African trade. This will enhance regional integration and create new opportunities for economic collaboration.
To ensure the success of the Tema Shipyard transformation, the government should establish a robust monitoring and evaluation (M&E) framework. This framework should track progress against key performance indicators (KPIs), such as revenue generation, job creation, and environmental impact.
Regular reporting and stakeholder engagement will provide transparency and accountability, ensuring that the project remains on track and achieves its objectives. Sustainability must remain a core focus of the Tema Shipyard’s transformation.
The government should enforce regulations that mandate eco-friendly shipbuilding practices, promote the use of renewable energy, and protect marine ecosystems. These measures will enhance Ghana’s global reputation as a responsible maritime nation and attract environmentally conscious clients and investors.
The modernization of the Tema Shipyard presents a unique opportunity for Ghana to transform its maritime economy, create jobs, and drive sustainable development. By prioritizing infrastructure upgrades, engaging with strategic partners like ADCB, and implementing supportive legal and regulatory frameworks, the government can unlock the full potential of this vital asset.
Authors
Dr. Boison is a Senior Research Fellow at the Center for International Maritime Affairs Ghana (CIMAG), is a distinguished academic, consultant, and CEO of Knowledge Web Centre, specializing in Blue Economy, Maritime and Port Operations & Logistics, IT, supply chain management, and Artificial Intelligence.
Albert Derrick is the Executive Director at the Centre for International Maritime Affairs, Ghana (CIMAG), an Advocacy, Research and Operational Policy Think- Tank, with focus on the Maritime Industry (Blue Economy) and general Ocean Governance. He is a Maritime Policy and Ocean Governance Expert.
