Ghana Construction Industry: Oxghart Limited, A Leading Outsourcing and Procurement Specialist

Interview with Ato Kwamena Ghartey, CEO of Oxghart Limited

Could you brief us a bit on the history of the company, how it started and where you are now?

Oxghart Limited started in 2005 as a sole proprietorship. This business was motivated when I started working in the construction industry. Over time, we have become a service provider in the sector. We are more of an outsourcing and a procurement specialist. We advise clients, consultants, and all the major stakeholders in the construction sector about where to outsource the right materials in terms of quality, costs and at the right time. Our company has successfully procured from over 20 countries worldwide. We have procured from over 30 companies from the UK, the US, France, etc. In France, I have bought products from Gerflor, Sovema and CS France. In Germany, I use locks from Hafele. I have also used quite a lot of product from Spain, from Cicogres, STN, Argenta and Galia. In Italy, I have dealt with Marca Corona, Marazzi, Tecma Light. I have also used products from Turkey, the United Arab Emirates, China and India in terms of heavy equipment. These are the few companies I have dealt with because of quality. We deal with well known brands which have proven within the test of time. I was in a private business before working on my own for 20 years now. We have worked with notable companies in Ghana, such as Berock Ventures and Simony. For instance, one of our big projects was with the US embassy in Mali, where we were the conduits in terms of procurement through the sub region to Mali for the US embassy they constructed. Then, through that, we have had to procure some items for the US embassy in Libreville, in Gabon. These are some of our hallmarks and trademarks.

What makes your company stand out? What is your unique selling proposition?

This industry is very competitive, because you are dealing with the foreign companies that are already established here, as well as with Ghanaians who go to other countries to bring items. For instance, if you go to Cantonments in Accra, it is flooded with a lot of products. There is something unique we have done where we deal with specifications per contracts and designs. That is one thing we pride ourselves in. We do not only go for these products, but we advise clients and consultants with the latest trends in the market. We also look at costs, and time of delivery.

What are your thoughts on the construction industry as a whole? What are the latest news?

The construction industry is very diverse, and there is a lot of political interference. For some time now, it has been too much. My concern is that because of that, they do not employ the technical people which is a major concern, right from pre-tender, from tendering and project execution. As professional as we are, if you want to advise, or if you are looking for supplies within the sector, it makes it very difficult to deal with the right technical people.

Because of diversity, we have issues with financing. If contractors are paid, that is where we get the best of business to do. But there are a lot of delays in payment with regards to contracts. Then, there are issues with poor quality work. It is one of the main challenged because a lot of players in the industry cannot afford the best, they go for poor workers. You cannot deal with that in construction. A doctor can kill one person, but if you miss it in construction, you kill thousands in a building. These are the challenges that we have in this industry. Dealing with the right people who are well experienced and technically inclined is a challenge for some of us. If you go and advise them the right thing to do, you turn up not getting the projects or the supplies that you need. Then you have issues with materials, which constitute almost 60% to 70% of the whole project costs.

A significant amount of projects in this industry is sourced outside Ghana. We have issues with currency depreciation. Over time, if you have a few dollars today or a few cedis today, tomorrow you cannot buy the same products. It is making the cost of materials extremely expensive.

Then, we have high cost of rates which started even prior to the pandemic. If you are bringing a 20 footer container of materials from outside, it is now almost 300% more from the last two or three years, which is a major concern. It has adverse effects on the price of materials. Also, the duty at the port is very high. If you culminate all these things into the final pricing of your products, it is extremely expensive. Because of whatever is going on every week, prices are going up, and that is a major challenge we are having. You cannot take off the political dimension from the external factors, they interrelate, and it is a whole thing that culminates into one thing, especially in the construction industry.

Did the pandemic have a strong impact as well?

The countries I mainly imported from were Italy and Spain. When the pandemic hit, factories closed and we were not getting supply, which really affected the business. COVID is the worst thing that has affected our industries. Because of that, we needed to shift a little bit, and that is when some of us went into some of the local production and paid our expertise. We need to build the locals’ capacity and tell them what the expectation of some of us in the industry is in terms of quality. Besides that, because of the pandemic, the prices of containers when shipping food stuff to Ghana shot up over 300% to 400% in terms of costs, either by air, sea or road.

What are some of the projects that you embarked on before the pandemic?

One of the projects I was doing prior to the pandemic was the expansion or renovation of the US embassy in Bamako, Mali. I got this contract from CCE specialists based in Virginia. When I started, we were just getting to the closing stage when COVID hit. One of the things that I do as a professional is to visit the project site, which I could not have the benefit of doing because of that. Most of the projects prior to the pandemic had to stop because of lack of funding, and that is some of the things that hit me in the industry.

Are there other projects that you are embarking on at the moment?

Of course. Thankfully, when you talk about political issues, there are also some good aspects. During the pandemic, the government created new regional offices and regional hospitals. I was able to find my way through, to talk to some local suppliers, to meet the standard, and I was able to supply such projects as well. I was also doing projects for Simony, the Bank of Ghana, and the Guest House Complex prior to COVID. Thankfully, these are picking up again.

What are some of your success stories since the inception of Oxghart Limited?

Most of the projects were done during the Berock Ventures Limited era, which is one of the best local firms in Ghana. With me as a procurement specialist, we did a Ghana Civilization Training Academy at the airport, for which we brought most of the materials. We did a Ghana Shippers House at the Ridge. We did a TDC Shopping Mall in Tema Community Two. We did the ICT Center at the Free zone. We did the MPA Complex opposite the Fiesta Royale, and we did a Minerals Commission in Cantonments. Then, we did a Promasidor House for Simony in the North industrial area. These are some of the notable projects that we have done.

Can you delimitate exactly what you do?

I have structured our company to provide 360 degree solutions in the construction sector. Everything starts with pre-tender, tender and construction. Even during tender, we provide solutions, like current prices of materials to prospective contractors who are building. When you are pricing, you do not under price or overprice. So we advise you and we do that pre-tender. We also advise privates, governments and companies during construction. The main objective of this company is to source materials, but we have realized over the period that clients want our expertise. We have trained some good guys to do the finishes. We do the floor finishes, which is the tiles, the laminate floor, the wooden floor, parquet, as well as the wall finishes if it is painting. We do the ceiling, be it acoustic ceiling, plaster board and all other accessories. We do fire resistant boards for hospitals. If you do not want fire to move from one room to another, we use specialized products for such projects. We do glass reinforcing projects, and steel tanks from Bridgewood in the UK. We also do personal protective clothing for specific projects, cutting wall designs and installation.

Prior to the pandemic, we were just about to meet with one of the biggest company from the UAE to start giving services in cutting wall designs, but we are still in negotiation with them. One of the things that is ongoing now in design is the LEED projects (Leadership in Energy and Environmental Design). These are projects that are upcoming and our company is positioned to get companies within the world and in Ghana that provide materials to meet the LEED requirements.

We also do bathroom accessories, doors, furniture, cabinets and ironmongery, which is the locks and all that. Most of those accessories rust over time, even though they claim to be stainless steel. Oxghart Limited deals with that. You can take our products to the Ghana Standard Authority for testing, and they will meet the specs. We basically provide solutions to meet client’s demands.

Could you tell us exactly what the LEED project is?

The world is moving to be environmentally minded. The LEED certification requires that every project be environmentally minded and defines the implications of projects regarding how they affect the environment, for instance, in terms of sustainability. If you are buying a WC, it uses a lot of water, but the LEED technology says that it must use a minimum amount of water to flush. So, some companies have gone through the certification to supply such products. If you put light in your room, what is the impact of that light in terms of energy consumption? Project or materials are designed specifically to meet that. The LEED tech design has brought that in, so that projects are designed in that way to be mindful of energy and environment. As a pace setter, Oxghart Limited has gotten companies who are doing that, and for any project that is designed along that way, we offer such services as well.

Where would you want to take the company in the next three years? What is the vision and what would you have loved to achieve in that regard?

In the next three years, we want to be the leading and the most reliable provider in the construction sector within the sub region, where we will be the one stop shop for all construction needs for private companies, government institutions, etc.

What inspires you, Mr. Ato?

My inspiration is to see all the projects without defects. My inspiration is to see projects completed in time. My inspiration is to see projects delivered within costs. And my inspiration is that all clients and stakeholders should be happy in the industry.

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