Nurses, teachers, and doctors will soon be able to purchase government-built low-cost houses with mortgages lasting up to 20 years. President John Dramani Mahama announced that these loans will be in Ghana cedis. This initiative aims to make housing more affordable for essential public sector workers.
The new scheme is part of a broader effort to tackle Ghana's substantial housing deficit, which currently stands at over 1.5 million units. Many real estate companies currently offer mortgages in US dollars. This often results in higher repayment amounts for Ghanaians, especially when the local currency, the cedi, faces pressure. By offering cedi-denominated mortgages, the scheme intends to provide greater financial stability for homeowners.
This housing plan is anchored by a GHS 3 billion Revolving Fund. The fund is a collaborative effort involving the government, Organised Labour, social security bodies, and private banks like Republic Bank. Companies like the State Housing Company and Tema Development Company will use funds from this facility to build new houses. Banks will then provide mortgages to workers to buy these homes.
President Mahama made these remarks during the sod-cutting ceremony for the "Dedesua Green City project" in the Bosomtwe District of the Ashanti Region. This project on 200 acres, donated by the Asantehene, Otumfuo Osei Tutu II, is expected to deliver over 1,000 housing units to residents. The government will also cover the cost of infrastructure, such as roads and drainage, within the Dedesua estate through its Big Push programme. This infrastructure support further aims to reduce the final cost of the houses for buyers.
“It will enable workers to acquire homes in cedis with manageable long-term repayments,” President Mahama stated regarding the financing network of the Revolving Fund. He added, “So what is going to happen is, government, organised labour, social security and the National Insurance Trust and the Republic Bank of Ghana are going to create a GH¢3 billion Revolving Fund.” This fund is seen as a crucial tool to unlock housing development and ownership.
The housing deficit is largely driven by rapid urbanisation, rising construction costs, and limited access to long-term mortgage financing. Over half of Ghana's population lives in urban areas now. This figure is projected to reach 70 per cent by 2050, increasing demand for housing. The Dedesua Green City project also exemplifies a push for geographical equity, ensuring housing initiatives extend beyond major cities to regional and district capitals.
The implementation of this scheme signals a significant government push in the housing sector. Officials will be closely watching the uptake of these new mortgages by public sector workers. The success of this GHS 3 billion fund and its ability to stimulate construction will be key indicators for future housing policy. The government hopes this will also encourage investment from Ghanaians living abroad, as suggested by President Mahama's appeal to the diaspora.