Ghana has called for the adoption of sustainable financing mechanisms for housing projects to address the country’s significant housing deficit.
The call was made by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a courtesy call from the Managing Director of Shelter Afrique, Thierno Habib Hann, in Accra
on Tuesday, July 16, 2024.
In his remarks, Minister Oppong Nkrumah emphasized the need to move away from the traditional government-funded housing models and to embrace global financing instruments.
“The old model where governments try to, with fiscal resources, execute housing projects is not the way to go. We’re going to have to find instruments that leverage financing from
wherever in the world to be able to do this,” Minister Oppong Nkrumah stated. He underscored the importance of innovative financing solutions to bridge Ghana’s housing gap.
The Minister expressed enthusiasm about integrating Ghana’s National Home Ownership Fund with international financing models. He cited Shelter Afrique’s success in Nigeria, where insurance bonds were launched to deliver 1,100 housing units and create 5,000 jobs.
“We are excited about the potential to bring on board similar models that have proven successful in other countries. This will not only help us address the housing shortage but also stimulate job creation and economic growth,” the Minister added.
Managing Director Thierno Habib Hann voiced strong support for Ghana’s housing initiatives and the government’s plans to close the 1.8 million housing deficit. “Following up our AGM, the opportunity for us to engage very closely with our shareholders to discuss some of the things that are happening there, as we’ve mentioned, the Caucus, the Council, but also the capital strengthening of the institution. We are very grateful to Ghana for taking the leadership from every single other country there to be the first one to meet actually,” Hann remarked.
The courtesy call by the Shelter Afrique Managing Director comes in the wake of Ghana’s recent achievement of securing a seat on the Board of Directors of the Pan-African housing finance and development institution. This strategic position is expected to enhance Ghana’s influence within Shelter Afrique and attract more resources to support affordable housing initiatives in the country.
Minister Oppong Nkrumah reiterated the government’s commitment to leveraging this new board position for the nation’s benefit. “With this seat, we are better positioned to influence decisions that directly impact our housing sector. We will advocate for policies and initiatives that support our national housing agenda and ensure that the benefits of our membership in Shelter Afrique are fully realized,” he noted.
Ghana’s housing deficit remains a critical issue, with demand far outstripping supply, particularly in urban areas. The government has been proactive in seeking partnerships and investments to bridge this gap, and its engagement with Shelter Afrique is a crucial part of these efforts. The integration of sustainable financing models is seen as a vital step towards achieving the country’s housing goals and ensuring long-term economic stability.
