Ghana’s housing sector faces a significant challenge as nearly six out of 10 Ghanaians need financial help to buy a home. The National Homeownership Fund (NHF) reports mortgage penetration remains very low, estimated at less than one percent of Ghana’s Gross Domestic Product (GDP).
This low penetration stems from several factors, including macroeconomic instability, high inflation, and elevated lending rates. Currency depreciation, issues with land ownership, and low-income levels also make it difficult for people to access mortgages. These conditions discourage long-term investments needed for housing finance across the country.
Addressing the housing deficit is crucial for Ghana’s broader economic development. A strong mortgage market can create many jobs, speed up urban growth, and boost demand in various industries. This aligns with Ghana’s goal of achieving sustainable cities and communities as part of the Sustainable Development Goals.
Prosper Hoetu, Chief Executive Officer of the NHF, emphasized the need for new financing ideas and stronger cooperation. He spoke at a workshop in Accra focused on developing the NHF’s strategic plan for 2026–2030. Mr. Hoetu confirmed that the NHF was created to support Ghana’s local currency mortgage market and offer new ways to finance homeownership. The NHF has already started a National Mortgage Scheme with financial institutions, providing low-interest mortgages through a mix of funding sources.
The NHF has also set up two Real Estate Investment Trusts (REITs), which are companies that own, operate, or finance income-generating real estate. One of these REITs successfully tested a rent-to-own program, helping individuals who cannot get traditional mortgages. The fund also offers construction loans at lower interest rates to developers building affordable housing units. These efforts aim to reduce risks in housing investments and improve access to mortgages and other homeownership products.
Dr. Frank Gyamfi-Yeboah, a Senior Lecturer at KNUST’s Department of Land Economy, highlighted the need for major reforms. He stated that developers often pass infrastructure costs, like roads and water, onto buyers. This practice makes houses too expensive for many Ghanaians. Dr. Gyamfi-Yeboah proposed that the state should be more involved in developing new communities. He suggested the NHF lead a Master Plan Community Developer (MPCD) framework to create planned communities with proper infrastructure and fewer land disputes.
Dr. Gyamfi-Yeboah also pointed out that banks struggle to offer affordable, long-term mortgages because most of their funds come from short-term deposits. He recommended establishing a mortgage refinance company to provide banks with enough money, making mortgage financing more affordable. He further called for legislation to back the NHF, giving it a clear mission to drive affordable housing without competing with private builders.
What happens next involves the NHF finalizing its 2026–2030 strategic plan. The success of pilot programs and stakeholder partnerships will be critical. Decision-makers and financial markets will watch for policy changes that encourage long-term housing finance and reduce construction costs. These steps are vital for expanding homeownership and boosting economic growth in Ghana.