Government is piloting a set of housing incentives aimed at encouraging private developers to undertake large-scale affordable housing projects.
The initiative, currently being piloted with the State Housing Company Ltd (SHC), is set to significantly reduce construction costs, and expedite housing delivery across the country.
During a working visit to various housing project sites yesterday, the Minister of Works and Housing, Kojo Oppong Nkrumah, said the initiative was part of the government’s broader plan along with the introduction of a Master Framework to streamline Public Private Partnerships (PPPs) to entice master developers to undertake huge housing projects to reduce the country’s housing deficit.
He said the government was orchestrating a strategic collaboration between key Ministries and Agencies to handle the provision of essential infrastructure like water and roads.
Having these Ministries and Agencies take on these responsibilities, he explained, would lower the construction costs for developers.
“In particular to this Amrahia project, we are piloting synergies with other sectors of government. For example, the Ministries of Roads and Energy, as well as the Ghana Water Company Ltd., Mr Oppong Nkrumah said.
He explained that “when we build in those synergies, it means the developer doesn’t have to construct the road himself, or extend electricity himself, or extend water, and it has the potential to reduce the cost of the final unit that is being sold by up to about 30%.”
The Minister also indicated that piloting these synergies with the SHC allows the government to see how they might be implemented on a larger scale as they work with private developers. He added that, along with others, it would be integral to the proposed incentives package aimed at master developers.
“The goal is to further reduce development costs while enhancing affordability through mortgage financing, allowing prospective homeowners to spread the cost over many years,” he said.
He disclosed that beyond the immediate construction projects, the establishment of a Works Inspectorate Unit within the Ministry was underway.
He said the unit would be responsible for enforcing building codes and safety standards across construction sites nationwide, ensuring the durability and safety of housing infrastructure.
The Minister’s visit included tours of the Surge Homes, where SHC is constructing 200 housing units, Legacy Court, where 70 abandoned affordable housing units are being redeveloped, and the SHC Court in Adenta. Accompanying him were the Managing Director of SHC, Kwabena Ampofo Appiah, and the management team of the housing company.