Mark Ankrah (2nd right) interacting with Issifu Sumani (2nd left), a member of the SHC Board and Judith F Aidoo (left), Chief Executive Officer (CEO) of CASWEL Capital Partners LLC
The State Housing Company (SHC) has devised a financial model to secure funds from investors and financial institutions to develop more affordable housing units.
The strategy, a three-pronged approach, is expected to address challenges in construction, mortgages and estate management financing.
Mark Ankrah, Managing Director of SHC, made this known recently at an investment seminar themed: “Affordable Housing –A Vehicle for Investing in Ghana’s Future” in Accra.
According to him, SHC will float 3-year Bank of Ghana (BoG) housing bond and shares on the Ghana Stock Exchange (GSE) as well as securitization of assets.
“The company also intends to raise funds through a 15-year mortgage through HFC and the collection of fees in its estate management,” he said, adding that SHC was engaged in discussions with investors to fund the projects.
“We have seen a lot of uncompleted projects dotted in some parts of the city as a result of the lack of funds. We cannot develop houses without the required finances.”
He told CITY & BUSINESS GUIDE that the company expects to raise $400 million for the bonds which would be floated in four phases in tranches of $100 million each.
“There is no cap on the amount we want to raise through the investment fund. In fact, we would even be happy if it is over subscribed.”
The funds from the bonds, he revealed, would be used to construct 10,000 affordable housing units at Latebiorkorshie, Kaneshie and Kanda – all suburbs of Accra.
SHC has a total of about 45 acres of lands in the afore-mentioned areas.
To effectively deal with the deficit in the sector, the company launched the housing registration scheme which is projected to match demand with supply.
The housing register, which was launched by the Minister of Water Resources Works and Housing, would contain the details of people who would like to rent or buy a home.
Applicants, who want to be featured in the register, would go through a housing needs assessment process before being placed on a waiting list for a fee to be levied by the company.
“Ghana needs a housing register to justify our talk about housing deficit. The register will serve as a record or evidence of the effective demand and to help with planning for individuals and groups who have housing needs.”
Reports indicate that Ghana’s housing deficit stands at 1.6 million and there is the need for the construction of 160,000 units on annual basis over a ten-year period to make up for the deficit.
Last year, a public data on shelter by the HFC Bank indicated that Ghana’s housing deficit was likely to double within the next decade if immediate measures are not put in place.
SHC, a wholly-owned government enterprise, has the mandate of developing affordable housing units. It has over the years been involved in estate management and serving sites. The company has a total of 94 housing estates including schools, churches and markets across the country.
It provides accommodation to more than 32,000 people and their families.
By Emelia Ennin Abbey
