Affordable Housing Fees: Is Akufo-Addo govt flouting BoG's 'no charges in dollars' directive?

The government of President Nana Addo Dankwa Akufo-Addo has just launched a new affordable housing project called the Pokuase National Affordable Housing Project that is expected to fill up the accommodation challenge in the country.

During the launch, which was graced by the president, the Minister of Works and Housing, Francis Asenso-Boakye, and other dignitaries, it was announced that the project will be in two phases; the first phase, comprising 4,000, will be completed within 18 months, while the remaining 4,000 units will be completed in the second phase, also in 18 months.

The project will also be undertaken by five developers, namely Rehoboth Properties, State Housing Company Limited, Devtraco Group Limited, FrankPauls Ventures Company Limited, and Douja Promotion Addoha Groupe Limited, each of them credited with several years of experience and expertise, as well as resources.

And then the other most important aspect of things; the prices of these affordable buildings.

As was shared by the government after the launch, the prices for the buildings are as follows:

Studio - $13,800

One bedroom - $20,700

Two bedroom - $34,500

Three bedroom - $42,550

The amounts are payable in cedis at the prevailing exchange rate and developers cannot sell above the agreed price ceiling but they can sell below.

What the Bank of Ghana said about pricing things locally in dollars:

In 2019, the Bank of Ghana issued a directive to every business in the country to desist from pricing in dollars.

The Bank stated that such practices of pricing things in Ghana in foreign currencies, aside from Ghana’s legal tender, the Ghana cedis, are illegal.

Speaking with GhanaWeb in an interview in 2020, the Head of the Financial Stability Department at the Bank of Ghana, Dr. Joseph O. France, stated that the Central Bank is going after companies, entities, and businesses who are still pricing their products in foreign currencies.

He also admonished the public to help the Central Bank identify these defiant entities.

“We go after institutions that are not supposed to price in dollars and are doing so. We will not advertise when we are going after them but we are. The Bank of Ghana cannot be everywhere so when you get an institution that is pricing in dollars, all you need to do is to send information.”

Why this policy?

According to the Central Bank, the Foreign Exchange Act, 2006 (Act 723) prohibits the pricing, advertising and receipt or payment for goods and services in foreign currency in Ghana.

What is different now?

It is clear the above narratives are on either side of each other. On one side, the government insists that it is illegal for businesses to price or charge in foreign currencies like the United States dollars.

On the other, the very government that is spearheading this campaign, blazingly advertises its ‘affordable’ housing project at Pokuase in USD.

While there is a caveat in that advertisement, that prices can be made in the local currency, the concern and bigger question is, why charge in foreign currency in the first place?

Meanwhile, a source at the BoG has indicated to GhanaWeb that the Central Bank is concerned about the pricing of goods and services in foreign currencies as the directive is still in force.

The source added that the Bank is looking forward to engage the Ministry of Works and Housing on this matter.

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