All set for cedi mortgages

–For public sector workers – Oppong Nkrumah  

By Elvis DARKO, Accra  

Plans are far advanced in the underwriting of local currency mortgages for public sector workers and providing much-needed construction finance to developers.

This follows the success of the pilot phase of the National Homeownership Fund (NHF).

The pilot phase of the NHF saw a collaborative effort between the Fund and three local banks.

This initiative, which has already shown promise, is now poised for expansion to benefit both public and private sector workers across the nation.

Minister for Works and Housing, Kojo Oppong Nkrumah, announced this during an engagement session with local banks to discuss the successes and lessons learned from the pilot phase.

A cedi-denominated mortgage means that the loan will be denominated in cedis at the time of the incurrence thereof, including from and after the date of any conversion of a loan into cedi-denominated loans.

This mortgage initiative is part of the government’s demand-side interventions to narrow the housing deficit, as the government has over the years focused on the supply side of the market to make housing more accessible to the people of Ghana.

The government’s intention of setting up a cedi-denominated mortgage facility for public servants and workers on the payroll to access affordable housing projects in the country is laudable.

The aim is to create an enabling environment for people in the public service to have access to low-interest funds to be able to own homes and make the mortgage program sustainable in the long term.

The government is not only acting as a facilitator but also playing a direct role in housing delivery through the provision of land, infrastructure services, and tax incentives to subsidize the construction of housing units.

Speaking at the engagement session, the Minister emphasized the importance of these partnerships and the success achieved during the pilot phase.

“The collaboration with our local banks has been pivotal in demonstrating the potential of the NHF to provide affordable housing solutions.

“The success we have seen so far gives us confidence to expand these schemes to cover both public and private sector workers across Ghana,” he stated.

The Minister highlighted that the primary goal of the NHF is to ensure that all qualifying Ghanaians have access to decent and affordable housing.

Oppong Nkrumah said that by extending the reach of the NHF, the government aims to enable more Ghanaians to access affordable mortgage rates and achieve homeownership, thereby improving living conditions and promoting economic stability.

The Minister’s dialogue with the banks comes at a time when Ghana faces a significant housing deficit, with many citizens struggling to find affordable and quality housing.

The NHF’s pilot schemes have shown that through strategic partnerships and innovative financing solutions, it is possible to make meaningful progress in bridging this gap.

Oppong Nkrumah concluded the session by reaffirming the government’s commitment to addressing the housing challenges in Ghana.

“Our goal is to create an environment where every Ghanaian has the opportunity to own a home.

“Through the expanded NHF and continued collaboration with our financial institutions, we are taking significant steps towards making this vision a reality. We call on all stakeholders to join us in this noble endeavor,” he urged.