Skip to main content

Ghana: Constructing new settlements

The government is placing a new emphasis on tackling the housing deficit, with an emphasis on private sector investment, better urban planning and more low-cost homes. Two recently launched projects that dovetail with these aims could point the way for construction development.

The Ghana Housing Profile, authored by the UN Human Settlement Programme, in conjunction with the Ministry of Water Resources, Works and Housing (MWWH) and launched on June 20, is a detailed analysis of the country’s urban housing sector, highlighting strengths, weaknesses and future needs.
With 38.3% of the population under the age of 15 in 2010, according to official figures, the next decade will see a rapid growth in the working-age population and further pressure on new housing units.

The profile forecasts that Ghana will need another 2m housing units by 2020. Graham Tipple, a UN housing consultant, estimates that 5.7m rooms will be needed, along with supporting infrastructure and utilities.
At the launch of the profile, Nii Nortey Duah, the deputy minister at the MWWH, said the government aimed to increase private sector participation in housing construction through land allocations and low-interest loans, in conjunction with Shelter-Afrique, a pan-African financial institution. This should ease impediments to private investment in less expensive homes.
Housing has become an even more pressing concern for the country since the collapse of the Ghana National Housing Project, which was to be undertaken by the South Korean firm STX.
The project was scheduled to produce 200,000 units at a cost of $10bn, but after negotiations failed in January, President John Atta Mills announced that the project had fallen through.
The good news is that positive developments are already taking place. On July 7, John Dramani Mahama, the vice-president, launched projects for the construction of two new cities, one in Greater Accra and one in the Western Region, the local press reported. Between them, the projects are worth around $600m.
The former, Appolonia (also known as the City of Light), is sited less than 30 km from central Accra and Kotoka International Airport, and 20 km from the harbour at Tema, Ghana’s largest seaport. The 810-ha site is also close to the highway between Accra and Aburi, which runs northeast from the capital, and thus is positioned in one of Ghana’s centres of urban development. The new “city” will be constructed in phases over 10 years and has a target population of 88,000 on completion.
Renaissance’s second development, King City, is located in North Asaka, just 10 km from Takoradi Harbour, the country’s second port, and part of the twin cities of Sekondi-Takoradi, the heart of Ghana’s rising hydrocarbons industry. It is also 5 km from the Accra-Ivory Coast highway, one of Ghana’s major international transport arteries.

The 970-ha site will also be a mixed-use development, aimed at “residential and commercial growth associated with the region’s mining and energy sectors”, the press reported. King City will also be built in phases over the next decade, and has a target population of 90,000.
“We see scope for more of these projects in Ghana, because there is a housing deficit. We are only scratching the surface,” Stephen Jennings, the CEO of Renaissance Group, told OBG.

As Mahama has noted, rapid urbanisation in Ghana requires better spatial planning than has often been the case; many Ghanaian towns and cities are surrounded by poorly planned settlements, with patchy infrastructure and services, and often low-standard housing. Local leaders have also welcomed Appolonia and King City, which are expected to help stimulate economic growth and fit into broader urban development plans. In both cases, Renaissance will establish the master plan, utilities and infrastructure, while the construction of buildings will be left to individuals and investors, following set guidelines.

The projects are particularly significant due to the nature of the investment. While Renaissance is providing the financial resources, local chiefs are providing the land. The so-called “stool land” is communal and usually administered by the chiefs on behalf of the people. Ghana’s complex land ownership situation can make life difficult for investors; deals between those overseeing stool land and developers seem to suit both parties. Renaissance has taken a minimum 50-year lease on both sites.

Secondly, the investment is a vote of confidence in the Ghanaian housing market from the private sector, particularly for properties accommodating lower-income households. Renaissance has said the new towns will have a mix of units, and that it has a deal with a company that can provide 15-year mortgages for GHS18,000 ($10,000) over 15 years, though this is still likely to be out of reach for many Ghanaians.
Thus Appolonia and King City could be important steps for several of the government’s policies: tackling the housing deficit, encouraging private investment in lower-cost residential property, and improving urban development through the construction of new cities. Still, there is much yet to be done. Ghana’s housing deficit is huge and growing, thus concerted government and private sector efforts will be needed to address it.

Comments

Popular posts from this blog

Nestlé Ghana Limited Wins Overall Best Industrial Company Of The Year at 13th AGI Industry & Quality Awards

  Nestlé Ghana Limited has been honored with four prestigious awards at the 13th Association of Ghana Industry and Quality Awards ceremony. The event, held in an esteemed setting, gathered prominent figures from Ghana’s industrial sector. Amidst the anticipation, Nestlé Ghana emerged as one of the evening’s notable winners, securing accolades in several key categories. This recognition underscores Nestlé Ghana’s relentless pursuit of excellence and innovation, marking a significant milestone that highlights the company’s substantial contributions to the manufacturing industry in Ghana. Nestlé Ghana's exceptional performance was acknowledged with the following awards: Overall Best National Quality Award, Diamond Category (Food) Overall Best Practices in Sustainable Manufacturing Best Company (Food Sector) Overall Industrial Company of the Year, affirming its status as a leader not only within the food sector but also across Ghana's entire industrial landscape. This success is a ...

Anglogold Ashanti Obuasi Mine tops 2024 Sustainability & Social Investment Awards

 AngloGold Ashanti Obuasi Mine has confirmed its status as sustainability champions by sweeping nine awards, the most won by a company at the 2024 Sustainability & Social Investment Awards (SSI) held at Movenpick Ambassador Hotel in Accra. The feat comes on the heels of a dominant performance in last year's event where AngloGold Ashanti Obuasi Mine swept seven awards. The SSI Awards organised by Ianmatsun Global Services recognizes the most outstanding sustainability, Corporate Social Responsibility (CSR), Environmental, social, and governance (ESG) initiatives in the country and beyond as well as the best teams and individuals who brought them to life. This year's event, which was the 8th edition, was under the theme "Climate Action Now: Accelerating Decarbonization and Building Resilience". The awards won by AngloGold Ashanti on the night include SSI Company of the Year, Best Company in Women Empowerment (project), SSI Company of the Year ( Environment), Best Co...

Zoomlion Advocates Community & Gender inclusive waste management for Climate Action at COP 29

 Africa's waste management giant, Zoomlion Ghana Limited has advocated for an integrated approach to waste management that considers the interest of community members, women and vulnerable groups. James Deku, a Communications Officer of Zoomlion Ghana Limited made this call at the 29th session of the Conference Of Parties (COP 29) of the United Nations Framework Convention for Climate Change (UNFCCC) at Azerbaijan, Baku whiles speaking on the topic "Community-Driven and Gender Inclusive approaches to waste management for Climate Action ". He said the waste sector is a major contributor of methane emissions which is a potent greenhouse gas causing climate change hence the need to manage waste in a manner that considers the interest of all stakeholders. Zoomlion's waste management model is designed and operated in a manner that considers the interest of all stakeholders. Through a Public Private Partnership (PPP) model, local authorities engage community members in clea...