Stephen Jennings (second left) and Dominic Adu (second right) exchanging the agreement, as Prempeh and Ambassador Jackson look on
An agreement has been signed between the Ghana Home Loans (GHL), a mortgage specialist and Rendeavour, developer of the Appolonia City, for the execution of an affordable housing project.
Under the agreement entered into on Wednesday, August 2, 2017, 100 housing units would be constructed at Appolonia City in the Greater Accra Region in the first phase, beginning from the third quarter of 2017.
The 100 housing units to be built on six acres of land are expected to be completed within 18 months, followed by the second phase of the project in 2019 which is to add an additional 2,500 units.
GHL is to provide the financing for the project while Appolonia City is to undertake the construction of the housing units.
Chief Executive Officer (CEO) of Rendeavour, Stephen Jennings and CEO of Ghana Home Loans, Dominic Adu, both signed the agreement on behalf of their respective organizations at a short ceremony held at the US Embassy in Accra and witnessed by US Ambassador to Ghana, Robert Jackson, Deputy Minister of Works and Housing, Freda Prempeh.
The multi-million dollar project aims at addressing the housing deficit in Ghana, which currently stands at 1.7 million and is projected to rise to 2.4 million by 2026.
Ambassador Jackson observed that Rendeavour’s partnership with GHL will make home ownership a reality for more Ghanaians, saying “it is an investment for the future.”
‘Come aboard’
He bemoaned the huge housing deficit in the country, and called on banks and other private players to come onboard and help address the challenge.
“I appeal to more entities in the banking sector to do their part to help grow the economy as well. By moving beyond government bonds, banks can help Ghana develop a world-class mortgage industry – a system that is based on a borrower’s ability to repay, not on who they know,” he said.
He added that “this will require banks to carry out the due diligence required for lending. Yes, it is a longer return on investment. However, the result is economic growth, improved housing conditions and a stronger middle class.”
Mrs Prempeh, in a statement, appealed to private developers to consider low-income owners in putting up housing projects.
The issue has not been about the non-availability of housing facilities for the masses, but the non-affordability for most people, considering their income levels, according to her.
She bemoaned the current housing gap, but disclosed that the Ministry of Works and Housing was in the process of getting new legislations passed and others reviewed to regulate the housing sector to enhance development.
BY Melvin Tarlue