President Mahama announces GH¢1bn government contribution to GH¢3bn housing revolving fund
President John Dramani Mahama has announced that government will allocate GH¢1 billion in the 2027 national budget as its contribution to a GH¢3 billion revolving fund to support affordable housing development in Ghana.
According to President Mahama, the GH¢1 billion will be placed in the National Housing Fund and used to finance housing projects under a revolving financing arrangement aimed at expanding access to decent and affordable homes.
The President made the announcement when he addressed the National Conference on Housing Financing, held to discuss innovative financing solutions to Ghana’s housing challenges.
He said the government’s contribution forms part of broader efforts to mobilise long-term capital and create sustainable financing mechanisms that can help reduce the country’s housing deficit.
President Mahama noted that Ghana’s housing deficit currently stands at about 1.8 million units, while more than 30 percent of existing housing stock is considered inadequate.
He stressed that the housing challenge was not only about constructing new homes but also improving existing settlements, addressing overcrowding, poor sanitation, insecure tenure and inadequate access to essential utilities.
“Adequate housing is a matter of human dignity and is a human right. It is also essential infrastructure for national development,” President Mahama said.
He said government would continue to work with financial institutions, developers, employers, organised labour and development partners to develop financing arrangements that reflect the income realities of ordinary Ghanaians.
President Mahama said high borrowing costs, large down payments and short repayment periods have placed home ownership beyond the reach of many households, particularly those outside the formal payroll system.
He therefore called for longer-term financing denominated in local currency, with manageable repayments and clear terms, while urging financial institutions to develop alternative ways of assessing the repayment capacity of traders, artisans, farmers, transport operators and other self-employed workers.
The President also announced the introduction of the National Housing Fund’s “Easy Rent” programme, which he said would help workers avoid the burden of paying large rent advances.
Under the initiative, the housing fund will pay the rent advance on behalf of eligible workers, who will subsequently repay the amount through monthly payments, reducing the financial pressure associated with securing accommodation.
President Mahama further urged stakeholders to explore mortgage refinancing, securitisation, employer-supported housing schemes, responsible financial technology solutions, rent-to-own arrangements, affordable rental housing and incremental housing loans.
He said government would also make effective use of institutional and government land banks, support private investment and accelerate stalled housing projects, including the completion of 1,500 housing units at Saglemi by next year and the expansion of the district housing programme being piloted in eight districts.
President Mahama said the success of Ghana’s housing agenda would ultimately be measured by the number of families able to secure decent homes without being overwhelmed by rent and mortgage costs, stressing that government’s GH¢1 billion contribution should help translate that ambition into tangible results for Ghanaians.
