This will be done by setting up a fund with 100 million cedis seed fund which will be increased every year.
The move government says will also support the private sector in accessing affordable loans to provide houses for Ghanaians.
“Government had committed to a GH¢1 billion mortgage and housing finance fund which will be seeded with a minimum of GH¢100m every fiscal year over the next 5 years.
This effort will support private sector in expanding access to housing and deepen the local mortgage and construction finance market,” Finance Minister, Ken Ofori-Atta announced during the 2019 budget presentation in parliament.
The initiative he said forms part of measures to address the country’s housing deficit which is currently pegged at over 1.7 million housing units.
Mr. Ofori-Atta assured that government will continue to work on projects, such as the abandoned Saglemi Housing project to bridge the housing gap.
“Government will continue to work on projects, such as the Saglemi Housing project, where 4,100 of 5,000 homes will be completed in 2019.”
The minister further stated that work has been completed for the pilot phase of the Mortgage and Housing Finance Market Scheme this month.
“An amount of GH¢40m has been released for the pilot phase which will leverage additional private sector funds of GH¢40m from pensions, insurance and collective investment schemes through selected commercial banks” he said.
He reiterated that “a vibrant mortgage and housing finance ecosystem is key for social equity, economic development and job creation”.
Ghana’s housing sector has seen a sharp decline, with industry watchers predicting the figure will escalate to 2 million by next year.
Citinewsroom