President John Dramani Mahama has directed the Finance Minister to allocate GHS 1 billion in the 2027 Budget. This allocation will contribute to a proposed GHS 3 billion revolving fund for the National Housing Fund. The President made this announcement on Wednesday during the National Conference on Housing Finance in Accra.
This significant government contribution aims to expand access to housing finance. It will also boost the delivery of affordable homes for Ghanaian households. The GHS 1 billion will be placed in the National Housing Fund and disbursed on a revolving basis to support housing finance. This mechanism ensures continuous availability of funds for housing projects.
Ghana faces a substantial housing deficit, estimated at 1.8 million housing units according to the 2024 Ghana Housing Profile. Additionally, more than 30% of the country’s existing housing stock is considered inadequate. This situation highlights a critical need for sustainable financing mechanisms to address the growing demand for decent accommodation. The government's commitment seeks to alleviate this long-standing national challenge.
President Mahama stated, “I have directed the Minister of Finance to allocate one billion Ghana cedis in next year’s budget as government’s contribution to the three billion revolving fund for the National Housing Fund.” He further called for reforms to housing finance systems. These systems currently exclude large sections of the population, particularly workers in the informal sector. He urged financial institutions to adopt alternative approaches for assessing the repayment capacity of traders, artisans, farmers, and other self-employed individuals.
The implications of this directive are far-reaching for Ghana’s housing sector and broader economy. The GHS 1 billion injection is expected to stimulate construction activity and create jobs. It will also improve living conditions for many Ghanaians. Decision-makers and financial markets will closely watch how this fund is managed and its effectiveness in reducing the housing deficit. The President also called for the mobilisation of long-term funding from pension funds, insurance companies, and diaspora investors. This broad approach aims to attract private capital and reduce risks for viable housing projects.
The ultimate success of this housing finance initiative will be measured by the number of Ghanaian households gaining access to decent and affordable accommodation. President Mahama urged financial institutions, developers, employers, organised labour, and development partners to collaborate. Their collective effort is crucial to translate this financing commitment into increased housing delivery across the nation. This collaborative effort is essential for achieving the ambitious housing targets.