By Kafui Dey
The Ministry of Works and Housing, led by Minister Kojo Oppong Nkrumah, has announced a comprehensive plan to tackle the housing deficit in Ghana. With a housing shortage of 1.8 million units affecting approximately 5.4 million Ghanaians, the government has identified seven key priorities to increase housing supply and improve access to affordable housing.
1. Completion of Stalled Projects
The government is focusing on completing three major stalled projects: Saglemi, Koforidua, and Adenta State Housing. Each of these projects has faced significant delays due to financial and legal challenges. For instance, the Adenta project, which began in 2011, was suspended in 2013 due to a court injunction. Recent court rulings have allowed work to resume, and efforts are now underway to secure private developers to fund and complete these projects.
2. Fast-Tracking Ongoing Projects
The Ministry is accelerating redevelopment programs initiated during the Rawlings administration. These programs aim to redevelop government buildings to provide more units on the same plots. Currently, 13 projects are ongoing, with a total of 609 homes at various stages of completion. The redevelopment includes areas such as Nkrumah Flats, Cantonments, Labone, and Roman Ridge, primarily targeting civil servants in the Accra enclave.
3. Restructured National Home Ownership Fund (NHF)
The NHF, piloted in 2018, is being restructured to help developers secure affordable loans. Building loans currently carry high repayment costs, making it difficult for developers to finance new projects. The NHF will assist banks in obtaining cheaper loans to facilitate housing development. The fund’s focus will also shift to rural housing, using compressed earth technology to build homes in underserved areas. An announcement on the first 15 districts to benefit from the NHF is expected on July 31, 2024.
4. Resettlement of Flood Victims
To address the housing needs of flood victims, the Ministry is constructing 1,010 units in the North, South, and Central Tongu districts. These areas were severely affected by flooding, impacting 19 districts in the South Volta region. Construction is progressing on 115 out of the planned 1,010 units, providing much-needed relief and stable housing for displaced families.
5. Legislative Reforms
New bills are being prepared for Parliament to address various housing-related issues. These include a rent bill to regulate hostel accommodation on campuses and curb landlord exploitation of students, a housing authority bill, and an architects registration council bill. These bills aim to create a more regulated and fair housing market, protecting tenants and encouraging better standards in housing development.
6. Long-Term Structural Changes
The Ministry is implementing a 15-year plan to bring the housing market into equilibrium. Currently, Ghana produces 40,000 houses per year, but to meet demand, this figure needs to increase to 130,000 annually. The plan acknowledges that 60% of Ghanaians require subsidies to afford housing, with only 5% able to build homes independently. The government aims to provide various levels of support to bridge this gap and significantly boost housing production.
7. Formalizing a Future Framework
The Ministry is establishing a Public-Private Partnership (PPP) framework to incentivize housing development. This includes creating land banks and providing tax incentives for developers. A pilot project in Amrahia aims to develop 200 homes, prioritizing infrastructure such as roads, water, and sewage. Developers will receive a 50% discount on interest rates for loans under the NHF and may benefit from facilitated off-take agreements with labor unions. The framework also includes a one-stop shop at district assemblies to ease regulatory compliance and annual recognition programs for master developers.
Conclusion
The Ministry of Works and Housing’s seven priorities represent a strategic approach to addressing Ghana’s housing crisis. By completing stalled projects, accelerating ongoing developments, restructuring financial support mechanisms, resettling flood victims, enacting legislative reforms, implementing long-term structural changes, and formalizing a future framework, the government is poised to significantly increase the availability of affordable housing. These efforts reflect a commitment to ensuring that every Ghanaian has access to safe, affordable, and decent housing.
