Government is piloting a set of housing incentives aimed at encouraging private developers to undertake large-scale affordable housing projects.
This initiative, currently being piloted with the State Housing Company Ltd (SHC), is set to significantly reduce construction costs and expedite housing delivery across the country.
During a working visit to various housing project sites on Wednesday July 10, 2024, the Minister for Works and Housing, Kojo Oppong Nkrumah said this is part of government’s broader plan along with the introduction of a Master Framework to streamline Public Private Partnerships (PPPs) to entice master developers to undertake huge housing projects in order to reduce the country’s housing deficit.
The Minister’s visit included tours of the Surge Homes, where SHC is constructing 200 housing units, Legacy Court, where 70 abandoned affordable housing units are being redeveloped, and the SHC Court in Adenta. Accompanying him were the Managing Director of SHC, Kwabena Ampofo Appiah, and the management team of the Housing Company.
The Minister elaborated that government is orchestrating a strategic collaboration between key Ministries and Agencies to handle the provision of essential infrastructure like water and roads. By having these Ministries and Agencies take on these responsibilities, he explained will lower the construction costs for developers.
"In particular to this Amrahia project, we are piloting synergies with other sectors of government. For example, the Ministries of Roads and Energy, as well as the Ghana Water Company Ltd. Why?
“Because when we build in those synergies, it means the developer doesn't have to construct the road himself, or extend electricity himself, or extend water, and it has the potential to reduce the cost of the final unit that is being sold by up to about 30%," he said.
He said piloting these synergies with the SHC gives government an opportunity to see how they might be implemented on a larger scale as they work with private developers. This partnership, he explained, along with others, will be integral to the proposed incentives package aimed at master developers.
“The goal is to further reduce development costs while enhancing affordability through mortgage financing, allowing prospective homeowners to spread the cost over many years,” he said.
Beyond the immediate construction projects, the establishment of a Works Inspectorate Unit within the Ministry is underway. This unit will be responsible for enforcing building codes and safety standards across construction sites nationwide, ensuring the durability and safety of housing infrastructure.
