President John Dramani Mahama has announced the rollout of a new low-cost housing scheme for public sector workers, developed in collaboration with Organised Labour and financial institutions. This initiative will allow professionals such as nurses, teachers, doctors, and other civil servants to purchase quality government-constructed low-cost homes, with payment terms extending up to 20 years in Ghana cedis.
This arrangement differs from the typical dollar-based payment options offered by many real estate companies in Ghana. The President further explained that the scheme is supported by an innovative housing finance network, which is built around a GH¢3 billion Revolving Fund in partnership with government, Organised Labour, and the private sector.
President Mahama explained that the initiative will allow workers to purchase homes in cedis with affordable, long-term payment plans. He outlined that the government, organized labour, the Social Security and National Insurance Trust (SSNIT), and the Republic Bank of Ghana will establish a GH¢3 billion Revolving Fund. Housing companies such as the State Housing Company (SHC), Tema Development Company (TDC), and others will receive credit from this fund to construct homes.
Banks will then provide mortgages to workers, enabling them to buy these houses and repay the loans over 15 to 20 years. He emphasised, “These houses will be priced in cedis, not dollars. This approach addresses the challenge where fluctuations in the cedi previously caused mortgage payments to rise.”
President Mahama also mentioned that new social housing projects are being introduced at the district level to ease the financial burden of home ownership. “We are committed to ensuring that housing development is not limited to major cities alone. Regional and district capitals will also benefit from these housing initiatives,” he stated. President Mahama made these remarks during a sod-cutting ceremony for affordable housing construction at Dedesua in the Bosomtwe District of the Ashanti Region on Saturday, May 9, 2026.
Housing project
Dubbed “Dedesua Green City project,” it is being developed on 200 acres donated by the Asantehene, Otumfuo Osei Tutu II. The project is expected to provide more than 1,000 housing units. President Mahama appealed to Ghanaians in the diaspora to invest in the project, assuring that the land was free from litigation.
“Here you will get your house built for you complete, you collect your key, there is no litigation on the land, nobody will come and demolish your house,” he said. He said the Asantehene has agreed to release another parcel of land to the TDC for a housing project in Kumasi.
Infrastructure
President Mahama said the government would absorb the cost of roads, gutters and drains within the Dedesua estate under the Big Push infrastructure programme. According to him, the decision would help reduce the final cost of the houses for buyers.
Housing deficit
Touching on the country’s housing needs, President Mahama said Ghana’s housing deficit stood at more than 1.5 million units. President Mahama said rapid urbanisation, rising construction costs and limited access to long-term mortgage financing continued to make home ownership difficult for many people. He said more than half of Ghana’s population currently lived in urban areas, with the figure expected to rise to about 70 per cent by 2050.
Rent advance
On rent advance, President Mahama said weak enforcement of the law restricting advance rent payments to six months remained a challenge. “Both the house owner and the one who wants to rent the property are not prepared to go and report,” he said. He expressed the hope that phase one of the Dedesua Green City project would be completed within a year. “I look forward to next year to coming back here to commission phase one of this Green City project,” he said.
Source: Mohammed Ali