Minister of Works and Housing, Kojo Oppong Nkrumah, has announced the government’s development of a comprehensive Public-Private Partnership (PPP) framework to significantly reduce Ghana’s housing deficit over the next decade.
This initiative aims to create a more attractive environment for private developers through incentives that target both the supply and demand sides of the housing sector.
Ghana’s housing sector continues to grapple with challenges such as affordability, stalled projects, and limited construction financing. However, despite these obstacles, the country has made progress in reducing the housing deficit from 2.8 million units in 2010 to 1.8 million in 2021, largely driven by private sector participation.
Appearing before the periodic ‘Minister’s Meet the Press’ series in Accra on Monday, he indicated to achieve equilibrium in the housing market within the next decade, the Ministry of Works and Housing has outlined key priorities. These include fast-tracking affordable housing projects, expanding public sector housing, securing land banks, and establishing sustainable financing models.
A major component of this strategy is the PPP framework, which offers tax incentives, such as waivers on machinery and equipment, and reduces construction financing costs by 40-45% through partnered banks.
On the supply side, the Ministry is collaborating with other government bodies to alleviate infrastructure burdens for developers by improving access to land, easing regulatory compliance, and promoting policy collaboration. The National Home Ownership Fund (NHOF) plays a pivotal role in securing off-takers, giving developers more confidence in financing their projects due to the guaranteed buyers.
On the demand side, efforts to improve affordability are underway through the deepening of the mortgage market. The Ministry is working with banks, the Bank of Ghana, and the Judicial Service to create a more robust mortgage system, while also expanding the rent-to-own scheme, which has already benefitted over 2,300 people. This initiative aims to widen access to homeownership, particularly for lower-income families.
Minister Oppong Nkrumah also addressed ongoing efforts to resolve stalled housing projects across the country. The Koforidua Affordable Housing Project, previously halted, is set to resume construction under the management of the State Housing Company Limited. Meanwhile, negotiations are underway to transfer the delayed Saglemi Housing Project, initially intended to deliver 5,000 units, to a private developer, enabling completion without further government expenditure.
The government is also working with the Ghana Infrastructure Investment Fund (GIIF) to develop innovative and sustainable financing models to support the housing sector, ensuring long-term solutions to Ghana’s housing challenges.
Through these concerted efforts, the government is poised to make significant strides in closing the housing gap and enhancing affordable homeownership for Ghanaians.
By Eugene Davis
