Affordable housing, within the financial reach of the general population, remains a significant challenge in Ghana due to high building material costs. While the private sector plays a crucial role in addressing the country’s housing needs, many developers struggle to offer affordable housing profitably. According to Milton Friedman, “the business of business is business,” highlighting that profit maximization often overshadows such efforts.
However, with the right project structuring, government support, and innovative financing methods, Ghana could improve its affordable housing landscape by learning from successful global housing models.
Affordable housing around the world
Countries like South Korea, Canada, and Brazil have each developed millions of affordable housing units by implementing unconventional concepts. South Korea, for instance, has a robust public rental housing program, providing subsidized homes for low-income households and vulnerable populations. Canada promotes cooperative housing, where residents collectively own and manage housing complexes. Brazil’s Minha Casa, Minha Vida (MCMV) Program has delivered millions of units by offering financing and grants to different income groups.
In India, the Pradhan Mantri AWAS Yojana (PMAY) scheme, launched in 2015, provided over 10 million homes for urban dwellers through government subsidies. Rwanda’s Integrated Development Program, focusing on affordable rural and urban settlements, has built over 28,000 units in just 10 years.
Ghana’s efforts and challenges
Ghana has tried addressing housing needs through various initiatives like the National Housing Policy (2015) and projects like the Saglemi Housing Project. However, these efforts have fallen short of reducing the country’s housing deficit. Failed initiatives like the STX and Saglemi projects indicate the need for better planning and structuring.
Ghana can benefit from innovative construction techniques, community housing models, and government subsidies. Cooperative housing, as seen in Canada, could be explored to create affordable and sustainable housing solutions, particularly in peri-urban areas.
Can Ghana discover new solutions?
Ghana could adopt long-term mortgage models, offering favourable interest rates to reduce financial pressure on homebuyers. Encouraging affordable rentals with price stability could also be a practical solution. By studying housing models from India, Brazil, South Korea, Rwanda, and Canada, Ghana can create well-structured, sustainable strategies to meet its housing demands.
The success of these initiatives, however, will depend on a combination of government support, private sector involvement, and innovative financing methods.
