By Morkporkpor Anku
Accra, Aug. 14, GNA – The National Homeownership Fund (NHF) has proposed a levy on selected building materials to establish a sustainable financing source for affordable housing.
Mr Prosper Hoetu, Chief Executive Officer of NHF, said the proposed housing development levy would provide Government with dedicated funding to expand investment in affordable housing and improve access to housing finance.
He made the proposal at the Fourth Annual General Meeting of the NHF in Accra.
Mr Hoetu said the levy could help address challenges in the housing sector, including inadequate infrastructure, limited private-sector investment and restricted access to affordable housing finance.
He cited Kenya and Morocco as examples of countries using housing development levies or taxes to mobilise funds for housing.
Mr Hoetu said Kenya reportedly generated about US$50 million monthly into its housing fund, while Morocco generated about US$5 million monthly through levies, including those imposed on selected building materials.
He said Ghana could adopt a similar mechanism to create a sustainable financing base for the housing sector.
Proceeds from the levy, Mr Hoetu said, could finance horizontal infrastructure on land banks to
support the development of master-planned communities.
He said serviced land would reduce investment risks and encourage private developers to build affordable houses.
“Through this, government will be solving a combination of challenges in the housing sector,” he said, referring to infrastructure provision and reducing risks to private investment.
Mr Hoetu said the approach could also support access to low-interest mortgages, Rent-to-Own arrangements and rental assistance schemes for workers.
He said addressing the housing deficit required innovative financing models and stronger partnerships among Government, the private sector, development partners and communities.
“We are therefore making a passionate appeal to our shareholder, the Ministry of Finance, for more funding to enable the Fund to serve many more Ghanaians,” he said.
Mr Hoetu said the NHF was working with the Ministry of Works, Housing and Water Resources and Shelter Afrique Development Bank on a rapid diagnostic assessment of the housing sector.
He said the assessment would inform a Country Housing and Urban Partnership Strategy to attract investment into the sector.
The findings are expected to be presented at a NationalConference on Housing Finance in October.
GNA
Edited by Kenneth Sackey