The Minister for Works and Housing, Ahmed Ibrahim, has called for the introduction of a national housing levy to help fund the construction of affordable homes and address Ghana’s estimated housing deficit of 1.8 million units.
The minister said a dedicated levy could provide a sustainable source of funding for state-led housing projects, particularly to help young people who are struggling to rent or own decent accommodation.
He proposed this during a working visit to the State Housing Company, where he highlighted the need for a national approach to addressing the country’s housing challenges.
The minister said that Ghana could explore a funding model similar to Kenya’s National Housing Levy, which channels tax revenue into a dedicated fund for housing development.
He acknowledged that politicians might be reluctant to introduce a new levy for fear of public resistance but said the country needed to consider long-term solutions to its housing shortage.
“Every politician is always afraid. I want to bring a levy for housing, but I’m scared. Ghanaians will revolt,” he said.
The minister cited Kenya as an example of a country using a dedicated housing levy to finance the construction of homes.
“Kenya, 200,000 is born out of the National Housing Levy by Kenya. It’s a tax. They put a tax, and they put those taxes in a fund which they use to build 200,000 housing units every year,” he said.
He challenged Ghana to consider adopting a similar approach to increase housing delivery.
“So if Ghana wants to build 200,000, 179,000 housing units every year, can’t we do the same thing?” he asked.
The minister said addressing the housing deficit required cooperation across the political divide, saying that housing should be treated as a national development priority rather than a partisan issue.
He called on both major political parties to work together to develop lasting solutions to the housing problem.
“Building or housing is something we must confront frontally, both political parties. We must come together,” he said.
The minister identified housing, water and employment as three basic needs that the country must address, arguing that investment in housing could also help tackle youth unemployment.
He said large-scale housing construction would create jobs across the construction industry and provide opportunities for young people with technical and vocational skills.
The minister proposed engaging students from technical and vocational education and training (TVET) institutions in the construction industry as part of efforts to expand housing delivery and create employment.
He said that a housing programme supported by a dedicated levy could serve two purposes: increasing the supply of affordable homes and providing jobs for young people.
“To fight youth unemployment, it will not be to engage the youth in other things. Let’s go for the TVET students, engage them for the construction industry and establish the housing levy,” he said.
He added that linking housing investment to skills development could help the country address several challenges at once.
“We’ll be killing two birds with many birds with one stone,” he said.