For many young Ghanaians, affording a house in 2025 is seemingly impossible.
Although the country has seen a boom in real estate development, most new housing developments are priced in US dollars and out of reach for young and middle-aged citizens who average about 3,000 to 5000 GHC (~$500) a month.
Ghana is facing a huge housing deficit, estimated to be around 1.8 to 2 million units, and is expected to increase in the coming years.
Over the years, different government administrations have attempted to fix the issue by initiating several affordable housing projects. Those projects were to provide decent and low-cost homes for low and middle-income earners.
Unfortunately, the majority of these affordable housing initiatives haven’t done much to alleviate the issue.
History of Affordable Housing
One of the main reasons for Ghana’s failed affordable housing is the lack of effective policies and interventions from the government.
Since the 1980s, Ghana has adopted a market-based approach to housing, following the recommendations of international organisations such as the World Bank.
The government privatised public housing, offered tax breaks and incentives for private developers, and sold off state-owned land for urban redevelopment.
However, these policies have not stimulated the supply of affordable housing for low-income households and have rather resulted in a rise of under-occupied luxury real estate that caters to the elite and expatriate market, especially in the city centre.
The government has also failed to effectively regulate the rental sector.
In 2020, the government passed an amendment to the Rent Act of 1963 that limits the advance rent deposit to six months.
However, there hasn’t been effective enforcement due to the under-resourcing of Ghana’s Rent Control Board. Many tenants still pay up to two years of rent in advance, which puts them under financial stress and limits their mobility and choice.
Government Affordable Housing Projects
Over the years, there have been attempts to fix the affordable housing issue.
According to available data, Government administrations over the years have spent close to GHC 1 billion on different housing projects.
Here are some of those projects:
Asokore Mampong Affordable Housing Project (2020)
This project is one of the government’s affordable housing projects under the Social Security and National Insurance Trust (SSNIT).
It consists of 91 apartment blocks that contain 1-bedroom, 2-bedroom, and 3-bedroom apartments, which are estimated to house over 1000 people. The project, located in Asokore Mampong in the Ashanti region, was completed and renamed after the Asantehene, Otumfuo Osei Tutu II in May 2020.
The prices of the apartments range from GHS 99,000 to GHS 335,000, depending on the size and type.
According to some prospective tenants, the price of housing is a hindrance to their occupancy.
Amasaman Affordable Housing Project (2021)
This project is funded by the United Nations Office for Project Service (UNOPS) as part of its global initiative to build over 850,000 homes across Asia, Africa, and the Caribbean.
The project was expected to produce 6,500 homes at a value of over $100 million in Amasaman, a suburb of Accra. The first phase of the project was to be ready by December 2020.
But the project has been embroiled in controversy after a partner in the project was accused of embezzlement. The project has reportedly been abandoned.
The financing for a major "affordable housing scheme" launched less than a year ago in Ghana with the support of a UN agency is now kaput after the British partner was accused of embezzling millions of dollars & UN execs were suspended & forced to resign.
— Bright Simons (@BBSimons) May 8, 2022
https://t.co/9nN6I8E6t7
Gbetsile Affordable Housing Project (2021)
This project is a Ghana-China collaboration that aimed to construct 400 affordable housing structures on 43 acres of land in Gbetsile, a growing suburb in the Greater Accra region.
The project was to have both 2-bedroom and 3-bedroom apartments for sale. The project is yet to be completed, but was expected to be done within two years of construction.
The project has currently been put on hold.
Saglemi Affordable Housing Project (2012)
This project was one of the largest affordable housing in Ghana, with 5,000 housing units proposed to be located in Saglemi, near the Ningo Prampram area.
The project started in August 2012 with a $280 million deal signed by President Mahama.
However, the project has been stalled since then due to various issues such as contractual disputes, mismanagement, and corruption allegations.
Are There Any Solutions?
Most of the issues with affordable housing in the country appear to be self-inflicted, with the Government of Ghana doing more harm than good.
The solution to fixing this would require a comprehensive and coordinated approach that involves multiple stakeholders and addresses multiple dimensions of the problem.
Some of the possible actions include:
Reforming policies and institutions
The government needs to review and revise its housing policies and strategies to ensure they are aligned with the needs and realities of low-income households.
It also needs to strengthen its institutions and capacities to implement, monitor, and evaluate its interventions.
Improving land administration and management
The government needs to improve its land administration and management systems to ensure that land is available, accessible, affordable, and secure for housing development.
It should also promote alternative land tenure models such as community land trusts, leaseholds, and customary tenure.
In all, the government has a key role to play in providing the policy framework, institutional support, resource mobilisation, and leadership for affordable housing provision.
At this point, a lot of damage has been done, and if efforts aren’t quickly mobilized, the concept of affordable housing will be more of a myth than a reality in Ghana.
