Regional capitals in the country will from next year see the construction of a total of 10,000 affordable housing units of various types, government has announced.
This means each region will receive 1,000 housing units.
As part of efforts to reduce the housing deficit, the Minister of Finance in his presentation of the budget in Parliament yesterday said the first phase of 5,000 housing units at Saglemi–Old Ningo for 1,502 housing units was 75 percent complete, while 216 of the affordable housing units at Kpone had been allocated to the Ghana Police Service for completion.
He added that Government’s Affordable Housing Projects at Borteyman-Greater Accra and Asokore-Mampong, Kumasi have also been handed over to SSNIT for completion; noting that work has resumed at the Asokore Mampong site for 1,030 housing units and described the project as progressing steadily.
“In 2018, construction of various reinforced concrete drains will be undertaken in Abuakwa South, Tano North, Subin, Effiduase in Sekyere East District, Okaikoi Central, Asutifi, Hwidiem, Tafo, Tamale, Ofoase-Korkorben, Odorkor, Bodi, Boanim, Dwinase, Asankragua, Nkrankwanta, among others,” The minister indicated.
Mr Ofori-Atta told Parliament that the second phase of the Security Agencies Housing Project comprising 368 housing units for the Ghana Navy has been completed and ready for commissioning.
He explained that the coastal protection works at Aboadze and Nkontompo was completed, whilst the Adjoa, Blekusu, New Takoradi/Elmina Phase II and Dansoman were at 65 percent, 45 percent, 40 percent and 45 percent complete, respectively.
He noted that the Ministry would commence the construction of Sea Defence Projects at Axim, Cape Coast, Ningo-Prampram, Shama and Mensa Guinea in Accra.
With a housing deficit of 1.7 million units, and statistics indicating that the gap between home prices and incomes of Ghanaians keep widening, making it impossible for many to afford a home, the Finance Minister indicated that government was developing a housing and mortgage finance Industry.
“Developing a vibrant mortgage and housing finance market is key for social equity and economic development and job creation.” Mr Ofori-Atta said in order to support private sector efforts in expanding access to housing, the Ministry of Finance would partner with banks, pension trustees and securities market players to start a process of developing and deepening the local mortgage and housing finance market to offer affordable mortgages at subsidized interest rate beginning with public sector workers.
The objective of the policy, he said was to reduce the cost of local currency mortgage offered by banks and to encourage the use of technology to lower the cost of housing by the private sector.
This, he explained was expected to contribute to the reduction of Ghana’s housing deficit which currently stands at about 1.7 million.
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