Deutsche Bank has closed a lending facility to finance phase two of the Kumasi Market redevelopment project in Ghana, together with the UK Export Finance Agency (UKEF) and African Export-Import Bank (Afreximbank).

The €184mn financing to the Republic of Ghana consists of a €145mn loan supported by UKEF and a €39mn commercial loan by Afreximbank. Deutsche Bank acted as the sole structuring bank and mandated lead arranger for the two loans.

With over 12,000 stores and stalls, the sprawling Kumasi Market is West Africa’s largest, visited by up to 800,000 people daily from Ghana and the neighbouring countries of Benin and Togo. Due to its large size and largely unplanned development, it suffers from regular fire outbreaks that have resulted in the destruction of stalls and loss of livelihoods.

The Ghanaian government’s redevelopment project for the market involves improving on environmental and health and safety issues, as well as congestion, in and around the market. The redeveloped market will be fitted with a fire detection system and have a fire station, while to reduce congestion, traders will be allocated defined market stalls, width of pavements along the roads will be increased and pedestrian barriers will be established to prevent trading on the roads. The redeveloped site will also have a car park, sufficient sanitary facilities, adequate drainage, defined waste storage areas, a waste treatment plant and modern refrigeration systems.

The overall construction has been awarded to British civil engineering firm Contracta Construction, which has named Scotland’s BHC as structural steelwork subcontractor. British Steel is manufacturing and supplying 8,000 tonnes of structural sections to BHC as part of the development.

Commenting on the transaction, Alarik d’Ornhjelm, head of structured trade and export finance for Middle East and Africa at Deutsche Bank, says: “We are pleased to be again involved in the redevelopment of this iconic marketplace. This further development of the market will boost economic activities and provide social benefits to the local community.”

As the transaction plays a key role in assisting the socio-economic advancement of a number of local small and medium enterprises in the overall supply chain, Deutsche Bank says it contributes to its target of facilitating over €200bn in sustainable finance and investments by 2023.

Since 2011, Deutsche Bank has arranged over €3bn of financing across over 20 transactions to support critical infrastructure development in Ghana. Most recently, in July 2021, the bank closed two loans to the government of Ghana, collectively worth €203mn, to finance health and transportation projects.