Accra:Ghana must establish a national housing levy to secure sustainable funding for state-led residential projects and curb the nation’s 1.8 million housing deficit, Minister of Works and Housing, Ahmed Ibrahim, has proposed.
According to Ghana Web, Ibrahim emphasized during a working visit to the State Housing Company that a dedicated fund is vital to delivering affordable homes, particularly for young citizens struggling to secure decent accommodation. He drew comparisons with Kenya’s model, where tax revenues are channelled directly into a dedicated housing fund to finance large-scale residential developments annually.
The Minister noted that Kenya successfully builds 200,000 housing units annually through a national housing levy. He suggested that Ghana could adopt a similar approach to meet its own housing needs, aiming to construct 179,000 units per year. Addressing concerns about public backlash, Ibrahim acknowledged political apprehensions surrounding new tax measures but insisted on the necessity of long-term interventions.
Ibrahim urged political leaders to treat housing as a critical national issue, similar to water and employment, rather than a partisan topic. He highlighted the potential of housing investments to alleviate youth unemployment. Additionally, during his tour of sector agencies, the Minister disclosed ongoing discussions with the Ministry of Finance to establish a statutory fund for the Ghana Hydrological Authority (GHA).
The GHA, established under Act 1085 in 2022, faces severe operational constraints with only 89 staff members against an authorized strength of 230. To address this, Ibrahim directed the GHA Chief Executive Officer to present a detailed report outlining operational bottlenecks, assuring that the government will pursue financial clearance for recruitment and improved staff welfare.