The Ministry of Works, Housing and Water Resources (MWHWR) has signed an agreement with two organisations to undertake a comprehensive diagnosis of the country's housing ecosystem and proffer solutions.
The ministry signed the pact, known as the Ghana VIRAL Model Assessment Strategic Partnership, with the National Homeownership Fund (NHF) and the Shelter Afrique Development Bank, a continental housing support fund, with the aim of ultimately transforming Ghana’s housing and urban development sector through sound policy and evidence-based planning.
The partnership is to help identify policy, institutional and regulatory gaps, strengthen coordination across the sector, and develop a practical road map for attracting investment and accelerating housing delivery.
It would examine the five critical pillars of Ghana's housing ecosystem: vision, institutions, regulations, actors and local initiatives (VIRAL) framework.
The comprehensive assessment will ensure that future interventions are evidence-based, well-coordinated and responsive to Ghana’s development priorities.
It is expected that the findings would provide a strong evidence base for policy reforms and shape discussions at the upcoming National Conference on Housing Finance later this year, which is being organised by the National Homeownership Fund in collaboration with the ministry.
Priority
The Sector Minister, Kenneth Gilbert Adjei, who signed on behalf of the government, said housing remained one of the government’s foremost development priorities.
He said beyond providing shelter, housing stimulated economic growth, created jobs, improved public health, promoted social inclusion, and enhanced the dignity and well-being of Ghanaians.
"Delivering adequate, affordable and sustainable housing therefore remains central to the development vision of the government.
"Government is fully committed to supporting this important exercise. I, therefore, encourage all ministries, departments and agencies, metropolitan, municipal and district assemblies, development partners, financial institutions, professional bodies, academia, civil society organisations and the private sector to actively participate in the assessment and provide the information, expertise and technical support required for its successful implementation," he said.
Contribution
The minister applauded Shelter Afrique Development Bank for becoming a leading continental institution, providing innovative housing finance, technical assistance, and project development support to African countries.
He said Ghana has enjoyed a strong and mutually beneficial partnership with the bank since becoming its 43rd Member State in 2011.
Mr Adjei said Parliament, subsequently, approved Ghana’s capital subscription of $10 million, followed by an additional contribution of $3.14 million in 2012, demonstrating the country’s confidence in the bank’s vision and mandate.
"Over the years, this partnership has delivered tangible results. Ghanaian financial institutions and private developers have accessed approximately $35.5 million in financing for housing and mortgage-related initiatives, contributing to affordable housing delivery and expanding mortgage opportunities for our citizens," he said.
Mr Adjei said the study, being implemented through the National Homeownership Fund, would also strengthen Ghana’s housing finance ecosystem, promote greater private sector participation, and improve access to affordable housing for Ghanaian households.
"I wish to commend the National Homeownership Fund for its leadership in coordinating and sponsoring this landmark initiative, and to express the government’s sincere appreciation to Shelter Afrique Development Bank for its continued confidence in Ghana and its enduring partnership with us," he added.
Financial support
The Chief Executive Officer (CEO) of the National Homeownership Fund, Prosper Hoetu, lamented Ghana's land tenure system, the high cost of land acquisition and building materials contributing to the high cost of buildings.
He said about 60 per cent of Ghanaians required financial support to enable them to own their own houses.
Mr Hoetu expressed the hope that the partnership would mark a turning point in Ghana's housing sector.
The Managing Director of Shelter Afrique Development Bank, Thierno-Habib Hann, said the VIRAL was designed to complement existing national housing strategy and the "valuable work" already being undertaken.
He said the added value was to bring all policies into a single integrated framework that identified priority reforms, aligned stakeholders around a shared vision and translated that vision into a practical action plan.
