The Takoradi Market Circle Redevelopment project in Ghana has stalled due to the cancellation of an Italian export credit loan that was financing the works. Local Government Minister Mahama Ayariga confirmed the development during a visit to the site on 23 September 2026. The project, aimed at providing a modern market for traders, had reached an advanced stage of construction before work came to a halt. Ayariga assured that the government is scrambling for new financing to complete the project.
The Italian export credit loan was provided by Deutsche Bank S.p.A Italy, with backing from the Italian export credit agency SACE. The cancellation of the loan has left the project in a state of uncertainty. Ayariga stated that it would be unfair to abandon the project, which had already reached an advanced stage of construction. He emphasized that the priority now is to organize the necessary financing to finish the job. The minister noted that the outstanding cost is relatively modest compared to what had already been spent.
To address the funding crisis, Ayariga's ministry is considering pre-renting market spaces to raise the funds needed to complete the remaining work. Discussions are ongoing with the Sekondi-Takoradi Metropolitan Assembly, the ministry, and the contractors. The plan is to return to the Finance Ministry to finalize how money collected from prospective tenants would be used to complete the project before handing over the stores. This approach aims to ensure transparency and avoid accusations of political favoritism.
The ministry intends to work with banks to collect rental payments and allocate stores, rather than managing the process directly. Ayariga expressed optimism that contractors would be brought back to the site to resume construction. Negotiations are underway to finish the project within a year, although a specific completion date has not been given. The uncertainty surrounding the project has left traders waiting for answers.
The Takoradi market saga is part of a wider pattern of stalled projects across Ghana. The Roads Minister recently disclosed that the Tema-Kpone road has no valid contract, while works on the Dome–Kitase road are set to resume after a four-year standstill. However, the Takoradi–Agona Nkwanta road is reportedly on track to open in November, four months ahead of schedule.
The cancellation of the Italian export credit loan highlights the risks associated with relying on foreign financing for infrastructure projects. When such backing is withdrawn, projects can stall indefinitely unless an alternative source of funds is found. Traders who have waited through the construction period are now facing more uncertainty, with no firm handover date given.
The government has not specified when the new financing framework will be presented to the Finance Ministry for approval or when contractors might return to the site. Despite the challenges, Ayariga remains committed to completing the project, which is expected to provide a modern market for traders in Takoradi. The project's completion will depend on securing alternative financing and the government's ability to manage the project's complexities.
Key points
- The Takoradi Market Circle Redevelopment project has stalled due to the cancellation of an Italian export credit loan.
- The Ghanaian government is exploring alternative financing arrangements to complete the project.
- The project's completion is expected to provide a modern market for traders in Takoradi.
