Developers need tax incentives – Director of Housing

The Government has been urged to give tax incentives to estate developers to venture into affordable housing projects.

Alhaji Yahaya Yakubu, Director of Housing, at the Ministry of Water Resources, Works, and Housing, made the appeal on Wednesday during the Fourth Annual General Meeting (AGM) and Stakeholders meeting of the Tema Development Corporation.

Alhaji Yakubu said a rebate would encourage more real estate developers to help reduce the 1.7 million plus house unit deficit in the country.

He said that the Ministry would hand over the entire Kpone Affordable Housing project to the TDC to complete for it to serve its intended purpose.

Alhaji Yakubu stated that the sector Ministry was happy with the work progress on the initial 24 blocks (312 apartments) of the uncompleted Kpone Affordable Houses handed over to TDC in 2013.

Mr Joe Abbey, Managing Director of TDC, said the lack of land and the non-availability of long term capital remained a major challenge to the building industry.

Mr Abbey appealed to government to take a look at the land situation in the country and formulate policies that could be of much benefit to stakeholders in the industry.

He also advocated the availability of long-term funds as developers had to resort to commercial loans, which increased the cost of developing houses.

The TDC-MD noted that the rate of the exchange of the Ghana Cedi to the major trading currencies was a major challenge to developers as it affected construction cost.

On the Kpone Housing Project, he said contractors who were engaged for the initial project, which was abandoned in 2009, were re-engaged for the continuation.

He announced that 12 blocks out of the 24 would be completed by the end of first quarter 2015.

Mr Emmanuel O. Adjetey, TDC Board Chairman, said the Corporation generated gross income of GH¢ 39.7 million in 2013, showing a growth of 37.5 per cent over the GH¢ 29.9 million generated in 2012.

Mr Adjetey said: "Profit before tax amounted to GH¢ 15.8 million against the restated profit of GH¢ 32.6 million (including revaluation gains of GH¢ 22.2 million) recorded for 2012 in line with International Financial Reporting Standards".

A dividend of GH¢ 1.2 million to the Government was declared during the period under review.