Prestige Group and its subsidiary, Best Link Services, are partnering the government to develop affordable housing units for public sector workers as part of efforts to address Ghana’s housing deficit and make home ownership more accessible.
The initiative, which is expected to begin in Ho in the Volta Region, seeks to provide affordable homes for civil servants through a combination of government support, private-sector investment and financing arrangements with financial institutions.
In an interview, Saviour Lotsu, Director in Charge of Projects, said the partnership was discussed at a housing workshop held at the company’s office for public sector workers in Ho, where stakeholders examined the challenges facing workers who wish to acquire homes, including high construction costs, expensive mortgage financing and inadequate access to affordable housing loans.
According to him, the initiative would explore innovative housing technologies and financing models to reduce the cost of housing and align the cost of homes with the income levels of public sector workers.
He said, many civil servants who have worked and contributed to pension and other schemes for decades still retire without owning homes because of the high cost of property and mortgage financing.
The initiative will also explore the use of strategic investment funds and other long-term sources of capital to develop affordable housing units that could be made available to workers through both home ownership and rental arrangements.
Saviour Lotsu said the model would help bridge the gap between home ownership and renting while allowing investors to participate in the development of much-needed housing infrastructure.
Under the proposed financing arrangement, Republic Bank is expected to provide 60 percent counterpart funding, while the Public Housing Loan Board would provide 40 percent, with the remaining funding structure aimed at ensuring full financing for the housing project.
The Public Housing Loan Board is also expected to provide financing at an interest rate of about 2.5 percent on a reducing-balance basis, while Republic Bank is expected to offer financing at approximately 3.5 percent, making the scheme more affordable for beneficiaries.
He averred that the project would also leverage land owned by some labour unions, with some unions reportedly possessing significant parcels of land and existing contributions that could support the development of housing units for their members.
Adding his voice, the Chairman of Prestige Group, Mr. Frank Lewis said the initial phase is expected to focus on Ho, which the developers described as a city with significant potential for planned housing development and the introduction of modern construction technology.
He also said the project could also create employment opportunities and stimulate local economic activity through the use of local construction materials and services.
The developers, however, called on the government to take urgent steps to reduce the cost of building materials, including cement, steel, paint and other construction inputs.
They argued that the high cost of building materials remains one of the major obstacles to affordable housing in Ghana, particularly at a time when the country continues to face a significant housing shortage.
They further advocated increased support for local manufacturing and reliable, affordable electricity to reduce production costs and make construction materials more affordable.
They also urged the Trades Union Congress (TUC) and other labour organisations to play a more active role in addressing the housing needs of workers by providing them with information on available housing schemes and financing opportunities.
They said closer collaboration among government, private developers, financial institutions and organised labour would be critical to delivering affordable homes to public sector workers.
Further engagements are expected to be held with labour leaders and other stakeholders to refine the proposal and develop a framework for the implementation of the affordable housing programme.
