Case Study 11 | Access to long-term capital: The Case of Ghana Home Loans

Mortgage lenders in Africa have traditionally depended on short-term deposits and capital markets to finance long-term mortgages. However, raising funds through this medium exposes lenders to liquidity risk as it is practically difficult to use short-term deposits to finance long-term mortgages. To minimize such risks, mortgage institutions resort to the capital market to access long-term funding for mortgages.

This case study provides insights into the challenges and opportunities in raising long-term finance in Ghana. It  describes the strategies used by Ghana Home Loans to address these challenges and leverage these opportunities. Such strategies include: leveraging strategic partnerships; developing an effective product-pricing strategy; and drawing upon a strong diaspora client base.

We hope that this case study, and the others in the case studies into innovation series, contribute to the development of imaginative solutions by housing finance practitioners across the continent, assisting them in adapting initiatives to manage the vast array of challenges they face daily.

Ghana Home Loans is a member of the African Union for Housing Finance.

This case study was prepared with the support of FSD Africa.