President Nana Addo Dankwa Akufo Addo has handed over 200 completed affordable housing units at Tema Community 22 under the National Mortgage and Housing Finance Initiative (NMHFI).
Constructed in nine months, the model community is part of efforts to address the country’s two million housing deficit.
The pilot housing project, implemented by the Ministry of Finance and Economic Planning, and the Ministry of Works and Housing, was undertaken by the Tema Development Company (TDC) in partnership with the GCB, Stanbic, and Republic Banks.
“Despite an annual supply of about 40,000 housing units, we are unable to meet the annual demand of some 70,000 homes each year, and the housing deficit has now exceeded two million housing units,” the President said at a brief ceremony to inaugurate the housing units.
President Akufo-Addo said based on the success of the piloting phase, the initiative will be expanded across the country to ensure affordable housing for all.
The Minister for Finance, Ken Ofori-Atta said an estimated 200,000 units of houses were needed annually to address the country’s housing deficit.
“The Akufo-Addo government will, through the National Mortgage and Housing Initiative, continue to ensure that all Ghanaians have the option of securing decent and affordable homes,” Ken Ofori-Atta said in a speech.
Tema 22 Housing Units
The project, estimated at GHS45 million, is made up of 50 units of two-bedroom detached houses, 118 units two bedroom semi-detached and 36 number of one-bedroom semi-detached.
The housing units, which will cost between GHS 170,000 and GS210,000, targets teachers and nurses under the pilot phase.
National Mortgage and Housing Finance Initiative (NHMF)
The NHMF comprises of the National Mortgage Scheme (NMS), and the rent-to-own scheme dubbed the Affordable Housing Real Estate Investment Trusts (REITs).
Through the two schemes, public sector workers can afford houses through a mortgage at a maximum interest rate of 12 percent.
“We expect to reduce the housing deficit by 40 percent by 2024,” Finance Minister Ken Ofori-Atta told Business24 in an interview.
He added that the scheme will deepen the local currency mortgage and housing finance market while leveraging the banking and capital market.
The Ministry of Works and Housing, Samual Atta Kyea said an estimated 10,000 jobs will be created through the initiative.