Why more investment is not making housing affordable in Ghana
Summary
Ghana faces a housing shortage of more than 1.8 million units, but most homes built remain unaffordable to the people who need them. Government programs aim to lower mortgage costs and boost construction, while high land and building costs, limited access to finance, and low household purchasing power continue to constrain supply.Key Facts
- About 56.7 percent of Ghana’s population lives in urban areas, and roughly 5 percent can afford housing without state support.
- The National Homeownership Fund has reduced mortgage rates from 13.5 percent to 8.4 percent.
- A three-billion-cedi revolving fund targets public-sector workers, with repayment periods of 15 to 20 years.
- The government plans to allocate one billion cedis to the National Housing Fund in its 2027 budget.
- Authorities aim to deliver the first 700 units of the stalled Saglemi Housing Project by March 2027 and have announced a 200-acre Green City Project at Dedesua.
- About 90 percent of Ghana’s housing is built through personal savings and incremental construction; mortgage lending equals 0.3 percent of GDP.
- Developers cite costly finance, difficulties securing land, ownership complications, and inadequate infrastructure as barriers to building homes.
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