The currency strategy
Building in Ghana while earning in pounds or dollars requires a currency strategy. The cedi fluctuates. Costs change. What you budgeted last year may not cover this years costs.
The Currency Strategy
Always Budget in Cedis
Get quotes and estimates in GHS, not foreign currency. This gives you a consistent baseline for comparison.
Build in Contingency
Build in a 20-30% contingency for currency fluctuations. The cedi can move significantly against major currencies in a short period.
Open a Ghana Bank Account
Maintain a Ghana bank account and reserve. This allows you to exchange at favorable rates and avoid repeated wire transfer fees.
Establish a Transfer Schedule
Regular monthly transfers during construction help smooth out currency fluctuations. Avoid large lump-sum transfers when possible.
Work with a Local Accountant
Work with a local accountant who understands diaspora finances. They can help optimize your tax position and currency conversion strategy.
Currency management is not about predicting the market. It is about protecting yourself against its movements.
Typical Budget Components
- Land acquisition: varies by location
- Architectural design: 5-10% of construction cost
- Construction: 60-70% of total budget
- Contingency: 15-20% of construction
- Legal and registration: 3-5% of land plus construction
- Furnishings: 10-15% of construction if applicable