Ghana Government to Inject GH¢1bn Into New GH¢3bn Revolving National Housing Fund.

ACCRA, GHANA — President John Dramani Mahama has directed the Minister of Finance to allocate GH¢1 billion to the 2027 Budget as the government’s take-off contribution to a GH¢3 billion revolving National Housing Fund.

The executive directive seeks to give a boost to real estate development while also ramping up credit availability to low and middle-income families.

Speaking at the inauguration of the maiden National Conference on Housing Finance at the Mövenpick Ambassador Hotel in Accra, President Mahama said the sum allocated will serve as an anchor for the targeted fund. The state-sponsored fund will have a revolving aspect as repayments from recipients and developers will be constantly recycled to form part of the resources for the acquisition of new properties.

Side-stepping on this imoportant matter President John Mahama expressed his desire to replicate Kenya's rapid pace of infrastructure and housing construction in Ghana, drawing inspiration from the aggressive development agenda of Kenyan President William Ruto. [Video insert]

With recent statistics by the government revealing that there is a huge deficit of about 1.8 million houses in the country, and with the local market making it impossible for about 5% of Ghanaians to afford to buy a house outright, the President noted that the National Housing Fund Limited in collaboration with the Ministry of Works, Housing and Water Resources had organised the two-day event themed Adequate Housing for All, Innovative Financing for the Nation’s Housing Future.

While new properties will be constructed, President Mahama announced the proposed launch of an Easy Rent scheme to address the unsustainable upfront advance payment system currently in vogue. The President explained that the new regime would ensure that landlords and tenants – formal and informal – do not face the problem of advance lease payments which are more than what ordinary workers can afford on yearly basis.

The state will advance the necessary funds to cover monthly lease costs, and formal and informal workers will begin repayment in installments within the next year.

President Mahama encouraged the private sector, institutional investors and district assemblies to come up with innovative financing mechanisms to rescue stalled property developments. He said the completion of partially constructed buildings was a sure way of ramping up the country’s housing stock immediately.

Tenants will be able to move into finished properties and continue with their periodic payments as installments towards ownership of the property.

The President also urged the need for long-term housing finance in local currency with low borrowing costs. He warned against the dangers of foreign currency housing finance and short-term commercial loans.

“Housing finance with regard to ordinary Ghanaians should be local currency, long term, and low borrowing costs if we must have more Ghanaian families enjoying mortgages. We need to restructure mortgages around housing finance, local banks and institutional investors”, he said.

Speaking on the social contract the NPP government has with the people of Ghana, President Mahama reiterated his commitment to ensure the government delivers on the agenda of improving the standards of living of the people. “Every Ghanaian family must be able to feel secure and comfortable living in a house. That must inform our policy, investments, and efforts in the years ahead,” the President said. The 2027 budget document will highlight the terms of engagement, banks involved and the timeline for the implementation of the National Housing Fund and Easy Rent schemes.