Kumasi, Ghana: Potential Opportunities for Investors - Millennium ...

Estimated investment
requirements
Establishing a 30,000m 2
shopping mall in Kumasi
is likely to cost
in the region of
US$19–22 million
Retail space: investment requirement
Indicative construction costs
US$18-20 million
Note: Based on a gross retail space of 30,000m 2
and a cost per m 2 of US$630
Indicative cost of land
US$1–2 million
Note: Based on a three-acre industrial site in Kumasi
Indicative annual revenue
US$3.5-4.5 million
Note: Based on an average rent per m 2 of
US$150–200 and a usable space of 22,400m 2
Indicative operating costs
US$0.5 million
Note: Includes agency and management fees
Source: KPMG in Ghana interview programme and desk research
Page 42
Positive market features
• Favourable planning environment with
initial support from the KMA
• Prominence of Kumasi within both the
Ashanti region and as a transport hub
within Ghana
• Construction capability for large
infrastructure projects
Key areas to address
• Maintenance of political support and
focus for the proposed developments
• Ensuring sufficient accessibility, space
and parking for the shopping malls
• Control of raw material costs
© 2008 KPMG International. KPMG International is a Swiss cooperative. Member firms of the KPMG network of
independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm
has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG
International have any such authority to obligate or bind any member firm. All rights reserved.