Ghana's Housing Deficit Tackled with State Housing and Republic Bank Mortgage Deal
Ghana’s significant housing deficit, currently estimated at almost two million units, is poised for improvement thanks to a new mortgage partnership between the State Housing Company Limited (SHC) and Republic Bank.
The Memorandum of Understanding (MoU), signed in Accra, aims to broaden access to affordable home financing, addressing a long-standing challenge in the nation’s housing sector. Many Ghanaians are currently unable to access mortgage financing, hindering their ability to participate in the formal housing market despite strong demand.
The World Bank estimates Ghana needs between 70,000 and 133,000 new housing units each year. However, the current supply only meets about a third of this need, with most developments geared towards the higher end of the market, remaining out of reach for middle- and lower-income earners who feel the shortage most acutely.
Under the terms of the partnership, SHC will focus on developing and supplying housing units, while Republic Bank will create mortgage products specifically designed to help more Ghanaians qualify for home loans. This is expected to boost mortgage uptake and stimulate further investment in affordable housing.
John Bawah, Managing Director of the State Housing Company Limited, described the collaboration as a crucial step towards expanding homeownership. “The partnership is focused on enabling working Ghanaians who meet the credit requirements to access mortgages when purchasing SHC properties,” he stated, adding that existing SHC customers will receive preferential consideration.
Dr. Benjamin Dzoboku, Managing Director of Republic Bank, affirmed the bank’s dedication to strengthening Ghana’s mortgage market. “This agreement reinforces our commitment,” he said, “It’s a strategic alignment where SHC drives supply and we support demand through accessible financing.”
The initiative is anticipated to support the government’s efforts to reduce the housing deficit, promote urban development, and enhance social welfare by making homeownership a reality for a larger portion of the population.
Image Source: MYJOYONLINE
