Home Headlines Ghana Expands NHF: Advancing Affordable Housing Solutions

Ghana Expands NHF: Advancing Affordable Housing Solutions

Mortgage Workers
Mortgage Workers

The Ghanaian government is moving forward with plans to offer local currency mortgages for public sector employees and construction finance for developers, building upon the successful pilot phase of the National Homeownership Fund (NHF). Following a fruitful collaboration between the NHF and three local banks, the initiative is now poised for expansion to benefit both public and private sector workers nationwide.

Minister for Works and Housing, Kojo Oppong Nkrumah, announced the expansion during a recent engagement session with local banks, focusing on reviewing the achievements and lessons learned from the NHF’s pilot phase. Nkrumah highlighted the pivotal role played by local banks in showcasing the potential of the NHF to provide affordable housing solutions and expressed confidence in extending these schemes to cover a broader spectrum of workers across Ghana.

The NHF’s cedi-denominated mortgage initiative, issuing loans in the local currency, mitigates exchange rate risks for borrowers. This initiative aligns with the government’s broader strategy to tackle the housing deficit by enhancing access to affordable housing, marking a significant demand-side intervention complementing existing supply-side measures.

The government aims to establish a sustainable mortgage facility for public servants and payroll workers, facilitating access to affordable housing projects through low-interest funds. Furthermore, the government is directly involved in housing delivery by providing land, infrastructure services, and tax incentives to support housing unit construction.

Minister Nkrumah stressed the importance of partnerships in realizing the NHF’s objectives, emphasizing the goal of ensuring that all qualifying Ghanaians have access to decent and affordable housing. By extending the reach of the NHF, the government seeks to offer affordable mortgage rates to more citizens, thereby enhancing living conditions and fostering economic stability.

Nkrumah’s dialogue with banks is timely, given Ghana’s significant housing deficit. The NHF’s pilot schemes have showcased the effectiveness of strategic partnerships and innovative financing solutions in bridging this gap.

The expansion of the NHF is anticipated to have a substantial impact on Ghana’s housing market, providing much-needed relief to public sector workers and stimulating the construction industry through improved access to finance. Nkrumah concluded by calling on all stakeholders to join efforts in achieving the vision of homeownership for every Ghanaian, underscoring the government’s commitment to this noble endeavor.

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