Benjamin Kofi Quashie, the Group Chairman of Allied Consortiums, has asserted that the private sector can play a crucial role in addressing Ghana's housing deficit.
In an interview with Joy News, Mr Quashie emphasized the effectiveness of South Africa's real estate development industry, stating, “You can't say they have a housing deficit. There is no housing deficit in South Africa. They do it so well because the industry of real estate development is well regulated.”
Mr Quashie outlined the South African model, where a real estate company is given land to develop. The government collects property rate taxes at the end of the month, and properties are provided to individuals with the ability to acquire bank guarantees.
However, Mr Quashie highlighted the challenges in Ghana, where obtaining a bank guarantee for long-term property acquisition is difficult. He identified two factors inhibiting banks from assisting people in acquiring houses: unemployment and low salaries.
He urged banks in Ghana to guarantee on behalf of young working people to enable them to acquire houses, a practice successfully implemented in South Africa. Mr Quashie emphasized the need for technical know-how and collaboration with experts in the real estate industry to address Ghana's housing deficit.
“Allied wants to bring on board technical know-how and bring people in the real estate industry to come to Ghana and introduce their module in terms of real estate. I think we can do it if we regulate it well because these are people who have the capital,” Mr Quashie affirmed.
He emphasized the achievable nature of this initiative if obstacles related to land acquisition and development, such as compensating chiefs and traditional rulers, are streamlined. Mr Quashie believes that by addressing these hurdles, Ghana can effectively reduce its housing deficit.