President John Dramani Mahama has announced a GHS 3 billion revolving housing fund. This fund aims to make home ownership more accessible for public sector workers across Ghana.
This initiative directly addresses Ghana's housing deficit, which currently exceeds 1.5 million units. Rising land values, high construction costs, and limited access to long-term financing have made home ownership difficult for many Ghanaians. The fund seeks to alleviate these challenges and prevent further growth of informal settlements.
This housing fund fits into Ghana's broader economic strategy to tackle rapid urbanisation. Over half of Ghana's population now lives in urban areas. Projections suggest that by 2050, nearly 70 percent of Ghanaians could reside in cities like Accra and Kumasi. Without urgent action, future housing challenges will be far greater than today's.
President Mahama explained that the government is pursuing a comprehensive housing strategy. This strategy focuses on increasing housing supply, improving affordability, and reforming housing finance systems. The government will also strengthen tenant protections.
The revolving fund will operate in partnership with organised labour, the private sector, and financial institutions. These institutions include the Social Security and National Insurance Trust (SSNIT) and Republic Bank. Housing agencies like the State Housing Company (SHC) and the Tema Development Corporation (TDC) will access credit facilities from the fund. This credit will be used to build new homes.
Banks will then provide long-term mortgages to workers, with repayment periods of 15 to 20 years. Crucially, the houses will be priced in Ghana cedis to protect homeowners from currency depreciation. This indexing in cedis will also shield residents from rising mortgage costs linked to foreign currency fluctuations. The government will also roll out low-cost housing schemes for essential workers like nurses, teachers, and doctors.
The newly announced Green City Housing project in Dedesua, Ashanti Region, will be a beneficiary of this fund. This project will provide more than 1,000 housing units in an environmentally sustainable community. The State Housing Company's Managing Director, John S. Bawah, called the Green City project a practical response to the housing crisis. Construction of the 1,067 residential units is planned over five years. Phase one will deliver 214 units by the fourth quarter of 2027.
The Minister for Works, Housing and Water Resources, Kenneth Gilbert Adjei, highlighted the importance of sustainable housing. He believes it will address climate change issues. The project has a financing framework, construction timeline, and partnership structure already in place. Mr. Bawah appealed for government support under the “Big Push” infrastructure initiative. This support, especially for roads, drainage, and sewage systems, could reduce property prices by 25 to 40 percent. President Mahama immediately accepted this request during the ceremony.
The introduction of this fund could significantly impact Ghana's real estate market and urban development. It aims to boost construction jobs and provide secure housing for many families. Observers will watch how effectively the fund's partnerships deliver affordable homes and manage currency risks. The success of projects like Green City will be a key indicator of the fund's impact and the government's broader housing strategy.