Reliable water supply for
the industrial park of Tema

Companies in the Tema Industrial Park face water shortages

Ghana's economic performance is strongly driven by exports. In addition to raw materials and petroleum products, food exports and the manufacturing industry have also made an important contribution to economic growth in recent years. The Tema Export Processing Zone (TEPZ) is located 30 kilometres outside the capital Accra and is a core element of Ghana's industrialisation strategy. Around 70 local and international companies from various sectors such as the automotive, pharmaceutical, cement and food industries use the industrial park as a production site with good infrastructure and close logistical links to the port of Tema. Since its establishment in 2002, the industrial park has made a significant contribution to Ghana’s economic development.

But the water requirements of the companies now exceed the amount that can be provided by the operator of the industrial park, the Ghana Free Zones Authority (GFZA). At peak times, the supply to the industrial park must be throttled and the companies must be supplied by tanker lorries at high cost. The supply problems are mainly due to insufficient storage capacity. Many companies are therefore unable to expand, and new companies are reluctant to set up here. This obstacle to investment means that the TEPZ cannot realise its full potential and urgently needed jobs are not being created.

The operator of the industrial park invests in water tanks and a pump house

The GFZA is under the authority of the Ghanaian Ministry of Trade and Industry. Its task is to promote the establishment of companies and to promote the export economy. The water tank currently used to supply the industrial area has a capacity of 6,800 cubic metres. With the support of Invest for Jobs, it will be supplemented by another tank with the same capacity. In addition, a 2,300 cubic metre elevated tank for distributing the water and a pump house will be built. This will make it possible to temporarily store enough of the water purchased from the Ghana Water Company to ensure the companies' water supply even at peak times or during maintenance intervals. In addition, the surrounding communities will no longer be affected by rationing.

New jobs at the companies

It is expected that the significantly improved water supply will permanently create 1,500 new jobs in the Tema Export Processing Zone. Several companies have already signed letters of intent to this effect. The project will give the 1,500 employees already employed at the TEPZ access to social benefits such as pension and health insurance. The industrial park will become more attractive as a business location and will draw in more companies. The GFZA obliges all users of the TEPZ to comply with Ghanaian minimum wage regulations.

The total volume of the investment amounts to EUR 1.84 million. The Facility Investing for Employment is providing a grant of EUR 1.66 million (90 per cent). It will be used to finance the construction of the ground level tank, the elevated tank, and the pump house. The Ghana Free Zones Authority will not generate any additional income from the investment project. As the operator of the TEPZ, it will provide the companies with the water, but they will be billed directly by the Ghana Water Company for the water they use.

The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector in the African partner countries