Housing Finance in Ghana

Overview

This profile is also available in French here.

To download a pdf version of the full 2018 Ghana country profile, click here.

The Government of Ghana’s commitment to stabilize the economy is yielding results with declining interest and inflation rates. Ghana successfully completed and exited the Extended Credit Facility programme of the IMF. The exit comes after four years of Ghana correcting its macroeconomic imbalances. In the past year, inflation rates have remained in the single digits partly due to the adoption of the country’s inflation targeting framework led by the Bank of Ghana.

The Bank of Ghana has initiated reforms in Ghana’s banking sector. There are now 23 banks (from 34) with universal banking licenses, 25 Savings and Loans Companies (from 48), and 137 microfinance institutions (from 566). Currently, only a handful of banks engage in mortgage lending and most products are unaffordable to many households. Bank long-term funding securitisation, for mortgage periods that extend to 20 years, has, up to this point, been limited by Ghana’s embryonic capital market. One key constraint to mortgage market growth is high interest rates, which have raised the number of non-performing loans (NPLs).

The Government of Ghana announced a GH¢ 1 billion Mortgage and Housing Finance Fund in the 2019 budget statement. The mortgage rates offered by the Fund are the lowest in the market (at 12 percent with Stanbic Bank and 11.9 percent at Republic Bank) compared with the nominal minimum rate of 24 percent for non-foreign currency or cedi-denominated mortgages.

Housing affordability is a key issue in Ghana and a major focus of current policy debate. With a housing deficit of 1.7 million houses, 90 percent of all housing supply in Ghana is built incrementally. Notably, the Government of Ghana has partnered with the United Nations Office for Project Services (UNOPS) to deliver 100 000 new affordable housing units by 2022.

The growth in the pensions and life insurance industries present a unique opportunity to tap into long term funds to provide a sustained funding source for housing investments. The ongoing policy interventions by the government are expected to increase private sector interest in Ghana’s housing sector.

Find out more information on the housing finance sector of Ghana, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2018 edition, which has up-to-date profiles for 54 African countries.

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