Ghana Affordable Housing
Ghana’s construction sector is a major part of the Ghanaian economy and has witnessed enormous growth over the years. Current estimates put the market size of the sector at between $9 trillion and $13 trillion with a contribution of 7.2% to Ghana’s Gross Domestic Product.
Despite these impressive figures, Ghana still faces a huge housing deficit. Various attempts to provide affordable housing solutions have done little to address the full scope the problem. The sector has seen a repeating pattern in which projects pursued by one government have been abandoned by successive ones. One of the criticisms of previous schemes has been that the costs of the units have been beyond the reach of the average Ghanaian. The continuing rise of building materials continues to be a major challenge.
In August 2023, the current Ghanaian Government launched a Revised National Affordable Housing Program with the aim of addressing this challenge. That program, named “My Home, My Peace,” estimates the current housing deficit at 1.8 million units. It aims, by working with local and government authorities and the private sector, to reduce the cost of developing housing units by as much as 40%.
To ensure this, the Ghanaian Government has agreed on a price ceiling beyond which the developers under this program cannot sell. Three Ghanaian companies and one each from India and Morocco have been selected to take part in the new program. The plan is for these companies to construct 14,000 units in two phases. The first phase comprising 8,000 units is to be completed in 18 months. The second is also to be completed in a similar time frame. The prices of the units have been pegged between $13,220 for a studio to $42,550 for a three-bedroom unit.
Even with this effort, actual demand will not be met for affordable housing. The Government has indicated that it is willing to partner with other entities that may have viable solutions to help address this problem. Local financial institutions have embraced solutions such as pension-backed mortgages.
U.S. firms are well-positioned to assist in Ghana’s affordable housing market due to their strong expertise in design and construction, consulting construction equipment, and urban planning, making U.S. companies competitive in Ghana’s market.
Opportunities for U.S. companies include:
• Provision of affordable housing/building solutions that bring international financing or other mortgage/financial instruments that are accessible for the middle class.
• Provision of construction materials, finishing elements (trim, marble, etc.), fixtures, and appliances for residential construction industry.
• Heavy machinery used in the excavation and finalization of major residential construction sites. Concrete mixers, backhoes, and graders.
• There is a strong presence in the local real estate development market of African American diaspora real estate developers who have a natural inclination to partner with U.S. suppliers.
For more information on Ghana’s real estate and construction sector, contact the PaaEkow Quansah at the U.S. Embassy in Ghana, at Office.Accra@trade.gov or Tel: +233(0)30-274-1870. Please see our Country Commercial Guide and our wide range of market intelligence reports.