Clark Construction is expanding its project selection into Ghana to maximize growth. Ghana presents opportunities as an English-speaking country with a stable democracy and legal system upholding contracts. Its economy is growing at 6% annually and construction makes up 12.8% of GDP, expected to rise to 14% by 2017 due to oil discovery driving infrastructure growth. The expansion will initially require $150,000 and face a 25% tax rate, while paying expatriates in USD and obtaining USD contracts to mitigate currency risk. Success will require deep cultural understanding of Ghana's collectivist, matrilineal society and modifying Clark's young leadership approach to accommodate preferred older local management.

1. CLARK CONSTRUCTION - GHANA
EXPANSION PROJECT

2. PROJECT SELECTION
Why this project?
Clark background – role as Construction Manager
Goal – maximize planned year-over-year growth
Primary Clients – US/Ghanaian Government and private corporations
Adaptation strategy

3. Maplecroft Index - Political Risk, Freedoms and Social Gains
Social gains
Politicalfreedoms
GHANA

4. WHY GHANA NOW?
Language – English speaking country
Stable democracy – since 1992, there have been six peaceful presidential
transitions
Law – Ghana has a legal structure that upholds its contracts
International Interest – Ghana’s approval of a $600MM EXIM loan from the
United States to help upgrade its infrastructure

5. WHY GHANA NOW?
Growing Economy – expected to grow 6% YOY over next 2 years
Construction Sector of Total GDP – currently at 12.8% and expected to grow to
14% by 2017
Growth Factor Causes – discovery of oil which is driving an increase in private
investments and infrastructure throughout the country
Recently publicized infrastructure challenges that has made infrastructure and
construction a politically charged issue

6. FINANCE
Cost to Start – initial cash outlay $150,000 USD
Tax Rate – corporate tax rate at 25%
Currency Fluctuation – mitigate against currency fluctuations
Pay – expatriates paid in USD and obtain contracts in USD
Banking System – Government requires offshore and local accounts
Our Key To Success Will Be A Deep Cultural Understanding

7. COUNTRY CULTURE
Former British colony – advanced pre-colonial society (Akan ethnic group)
Collectivism – communal-oriented society
Matrilineal Heritage – role of women in society and business
Compulsory Educational System – highest enrollment rate of children in Africa
(95%) | University enrollment capacity of 300,000 spots
Human Relations – harmony and respect amongst ethnic groups| Result:
educated and cooperative workforce

8. CORPORATE CULTURE
Age & Hierarchy – Modify Clark’s young leadership approach (25-32 years old) to
accommodate Ghana’s preference for management 40+ years of age
Safety – Clark’s primary core value | Example: OSHA strong US workforce
enforcement vs. minimal enforcement in Ghana
Safety Costs & Benefits – Increased cost for Ghana (but less than US) |
Opportunity to raise country standards and provide a lasting impact
Foreign Corrupt Practices Act – appoint a Construction Manager to oversee the
hiring of consultants for all arms-length business dealings

9. COMMUNICATION
Indirect communication – Clark Project Leads must encourage and elicit feedback
Relationship building – on ground 12-24 months in advance of project start
Honorific / Professional Titles – management titles carry significant weight and
must be carefully considered
Never use the left hand
Never embarrass or show disrespect
“Feree Ne Animguasee Dee Fanyinam Owuo”

10. Benevolent country, attentive and hospitable native population
Western conveniences (e.g. sports, food, etc.)
Established Expat Community
Health Benefits – healthcare provided to both Ghanaians and expatriates
CONSIDERATIONS
Energy crisis— Provide generators
LIVING ENVIRONMENT

11. International Interest – US policy interest (example of EXIM loan)
Similar Legal System – contracts are enforced
Construction Sector of Total GDP – projected 6.5% YOY growth through 2024
Understanding of the cultural elements that are critical for success
Potential of helping “…cement Ghana’s position as one of the most
dynamic economies in (the) sub-Saharan Africa.”
WHY GHANA NOW?

12. Thank you!
ME DA SE | THANK YOU