The Government of Ghana as part of efforts to close the huge housing deficit in the country has allocated a total of GH¢100,000,000 towards the provision of affordable housing units in the country in the 2022 fiscal year.
Out of this amount, GH¢95,000,000 constitutes investments in capital expenditure whilst the remaining GH¢5,000,000 is to be used to procure goods and services that will aid the delivery of the housing projects.
The amount remarked for the provision of decent, low cost housing units for Ghanaians in the 2022 fiscal year accounted for 23 percent of the total budgetary allocation for the Ministry of Works and Housing. Overall, the government allocated a total of GH¢429,812,000 to aid the activities of the Works and Housing Ministry in the coming year.
Huge housing deficit
Shortage of decent and affordable housing units remains one of the major challenges facing the country, especially in the urban areas. The cost of rent is unbearable as landlords demand a 2-year outright payment from prospective tenants, leaving many unable to rent a single room in the capital.
The Population and Housing Census conducted this year by the Ghana Statistical Service (GSS) revealed a housing deficit of about 1.7 million units, which is projected to hit 2 million units before the end of 2021. This calls for drastic measures as successive governments have rolled out a number of housing projects, majority of which remain uncompleted.
Unveiling government’s plans for human settlement and development for 2022, Finance Minister, Ken Ofori-Atta, told Parliament that the policy objective of the housing sub-sector is to provide adequate, safe, secure, quality and affordable housing schemes for the people of Ghana.
“An estimated, 60 percent of Ghana’s urban population will require various Government interventions to access decent housing. In this regard, the Ministry will initiate a programme to subsidize the cost of construction of housing units”.
Ken Ofori-Atta
Government’s settlement development initiatives
On the supply side, Mr. Ofori-Atta disclosed that government will provide land to developers, infrastructure at designated affordable housing project sites as well as tax incentives and exemptions. On the flipside of the coin, thus, on the demand side, the Finance Minister stated that government is facilitating the establishment of a credible mortgage system, while encouraging Rent-to-Own Schemes in the country.
Still on bridging the housing deficit, Mr. Ofori-Atta indicated that the Ministry of Works and Housing has started the process to develop housing schemes in two designated sites on 203 acres of land at Pokuase and Amasaman in the Greater Accra Region, and 200 acres of land at Dedesua in the Ashanti Region which will provide 12,000 housing units.
“…The Ministry, in collaboration with State Housing Company Limited (SHCL), commenced works on the preparation of the District Housing Programme for the construction of 6,584 rental housing units at the District Level for public servants over the medium-term. Currently, a total funding of €160 million has been secured for the project and construction is expected to commence in 2022”.
Ken Ofori-Atta
Started by the previous administration, the current government hinted that it is considering available options for the completion of the Saglemi Affordable Housing Project. The Ministry of Works and Housing, according to Mr. Ofori-Atta, envisages that work will resume on the 1,502 housing units under Phase I of the Project. The government has promised to complete a number of the housing projects it has started in 2022 which, if completed, may reduce the housing deficit and ease the burden on Ghanaians.
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