International Journal of Innovation and Development

Exploring Factors that Impede Private Sector Investment in Rail Infrastructure in Ghana

Collins Ameyaw

Kumasi Technical University

Sarfo Mensah

Kumasi Technical University

Richard Ohene Asiedu

Kumasi Technical University

Ibrahim Muhammed Kusi

Kumasi Technical University

Blondel Akun Abaitey

Kumasi Technical University

Anita Asamoah-Duodu

Kumasi Technical University

Gillian Mensah

Kumasi Technical University

Keywords: Barriers, Ghana, Private Sector Investment, Public-Private Partnership, Rail Infrastructure

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Abstract

Rail transportation is considered globally crucial to the growth and development of any

economy. However, most developing countries are struggling to develop rail infrastructure

despite its capacity to propel them to greater development. This study aims to identify

the factors that impede private sector investment in rail infrastructure in Ghana.

This study adopted a quantitative research method, utilizing surveys to

collect data from stakeholders, asset owners, and private investors in the rail

infrastructure sector. Data were analysed using principal component analysis (PCA).

The results show that the major issues are limited access to funds, followed by regulatory

uncertainty, insufficient government support, corruption, and the lack of a skilled

workforce. Moreover, private investors complain of a poor and ambiguous Public-Private

Partnership (PPP) policy and a lack of clear or transparent approaches to risk-sharing.

In conclusion, eliminating investment barriers is necessary to address regulatory bottlenecks, enhance

access to financing, and develop clear PPP guidelines. This study offers suggestions to policymakers

and other stakeholders to create an enabling environment for private sector involvement in rail

infrastructure development.