Ghana gets a 50 million-dollar credit facility for housing sector

Vice-President, Alhaji Aliu Mahama announced last night that the government is securing a 50 million-dollar external credit facility to assist the Ministry of Works and Housing to embark on a low-income housing scheme for the people.

He said the scheme to be called "Housing the people scheme", involves the acquisition of land by the Ministry, which would be provided with basic infrastructural services for low-income workers to put up houses.

Alhaji Mahama was addressing a banquet and awards night organised by the Home Finance Company Limited (HFC) to mark the 10th anniversary of the company as a housing and mortgage-financing venture.

He said additional 50 million dollars is being arranged for members of the Ghana Real Estate Developers Association (GREDA) to provide rental and land ownership housing units.

The financial package would complement this year's budgetary allocation of 325.54 billion cedis for specific policy initiatives and directions relating to the housing sector.

Alhaji Mahama said plans are underway to promulgate a law to regulate Business activities and enhance the capability of local enterprises to be competitive in the West African market.

He expressed the hope that entrepreneurs in the housing industry will take advantage of the housing finance and mortgage insurance and the small business service schemes to boost their business.

Mr Kwamina Bartels, Minister of Works and Housing, said government would initiate an inter-ministerial discussion to formulate a national policy on housing.

He said the policy would empower the District Assemblies to initiate bye-laws on housing and code of conduct for real estate developers.

Mr Bartels said the Building Inspectorate Division of the Ministry of Local Government and Rural Development will be assisted to encourage public and private sector involvement in the housing sector.

Mrs Stephanie Baeta Ansah, Managing Director of HFC, who gave an overview of the 10 years business operations of the company, said over 3,600 houses have been put up within the period.

She said from a humble beginning, with 10 million cedis, the company now has a respectable and solid net profit, worth over 33 billion cedis.

" With total assets of nearly 217 billion cedis, and a mortgage loan portfolio in excess of 155 billion cedis, HFC has grown tremendously and has been transformed into a fully fledged financial institution".

Mrs Ansah said the company has introduced three new schemes to facilitate public access to housing. These are a special incremental mortgage loan, special new home equity loans and the owner-occupied with rental housing scheme.