President John Dramani Mahama has directed a GHS 1 billion allocation in the 2027 Budget for a new revolving National Housing Fund. This significant government contribution aims to expand access to affordable and decent housing for Ghanaians.
The GHS 1 billion represents the government's initial commitment towards a larger GHS 3 billion fund. This initiative seeks to broaden the institution's mandate beyond just home ownership financing, focusing on comprehensive housing delivery. The President made this announcement at the National Conference on Housing Finance in Accra, emphasizing a blended finance approach to attract diverse capital sources.
This move fits into Ghana's broader economic strategy, particularly the 24-Hour Economy and Accelerated Export Development Programme. The government aims to leverage carefully targeted public and concessional financing to attract private investment. This strategy addresses a persistent housing deficit and aims to stimulate economic activity through construction and related sectors. Previous housing initiatives, like the Saglemi project, have faced challenges, making this new fund critical for future success.
President Mahama stated, "The Government’s contribution would not be the sole source of financing for the Fund." He highlighted that pension funds, insurers, development finance institutions, and diaspora investors could also provide capital. This approach aims to protect investor interests while supporting viable housing projects, ensuring a diverse funding base for long-term sustainability.
The establishment of the National Housing Fund and its substantial initial allocation signals a renewed focus on housing infrastructure. Decision-makers and financial markets will closely watch how effectively this fund mobilizes private capital and delivers tangible housing units. The success of this initiative will depend on transparent governance, efficient project execution, and the ability to maintain economic stability, which is crucial for favorable lending conditions.
The transition from the National Home Ownership Fund Limited to the National Housing Fund Limited broadens the institution's scope. This new focus supports housing delivery and expands affordable housing options across the country. The government remains committed to delivering decent and affordable housing at scale, utilizing government and institutional land banks.
Support for private investment and the revival of stalled housing projects are also key components of this strategy. The housing programme at Saglemi is expected to deliver 1,500 housing units by next year. Additionally, a district housing programme is being piloted in eight districts by the Ministry of Works, Housing and Water Resources in collaboration with the National Housing Fund.
The government plans to accelerate the district housing programme in the next financial year. Other projects, such as the Tema Development Corporation’s Oxygen City in Ho and the State Housing Company’s Green City at Dedesua, will further contribute to the national housing stock. These initiatives aim to create integrated communities with essential services like roads, water, and healthcare.
President Mahama stressed that economic stability is critical for expanding housing finance. Lower inflation and more favorable lending conditions can improve prospects for construction and mortgage finance. He noted that the government's responsibility is to ensure economic gains translate into tangible benefits for households, including affordable housing.
He also emphasized the need to mobilize capital suited to the long life of housing investments. Housing development must extend beyond mere construction to create integrated communities. These communities require roads, water, drainage, sanitation systems, schools, and healthcare facilities. Lower house purchase prices offer little relief if families incur excessive commuting costs or struggle to secure basic services.
Land administration, planning approvals, infrastructure provision, and housing finance must all work together seamlessly. President Mahama called for housing to be incorporated into the planning of industrial enclaves. Providing residential facilities near industrial areas would reduce commuting costs, improve worker productivity, and enhance family time.
However, uncertainties surrounding land titles and delays in planning approvals increase costs and discourage investment. These issues ultimately burden households. Mr. Ahmed Ibrahim, Minister of Works, Housing and Water Resources, proposed institutionalizing the conference as an annual event. This platform would allow government, the financial sector, developers, and other stakeholders to review progress and agree on practical solutions for housing finance.
Mr. Ibrahim highlighted adequate housing as a fundamental human right and a driver of economic development. It creates jobs, stimulates local industries, deepens financial markets, and contributes to improved health, productivity, and social stability. Mr. Prosper Hoetu, CEO of the National Housing Fund Limited, stated Ghana needs a housing finance system recognizing diverse household circumstances and providing multiple pathways to home ownership.