The Works and Housing Minister, Kojo Oppong Nkrumah, has disclosed the Ministry’s new initiative to partner with the private sector to provide Ghanaians with affordable housing.

He revealed to Evans Mensah on Joy News’ PM Express that the government will incentivize private developers to reduce construction costs since they have the speed and technology to provide this basic amenity.

“In the last month, we've been engaging the private sector and other stakeholder groups. And they've been nominating some ideas, which we've put together into an incentives package, focusing on about eight major parts on the supply side to get the housing supply out there at the price point that we want.

“And then we have about four major points on the demand side to make it easier that once they have supplied, those who are looking for access to housing can get it. It is this incentives package, which we are expecting cabinet and Parliament to approve so that we offer it to the private sector,” he stated.

He mentioned that during their engagement with the stakeholders, they received approval that such incentives would greatly benefit their businesses.

The Minister cited an example of the issues private sector developers face with land pricing and multiple sales of land.

In the new arrangement, the government will make its land banks available to the developers and develop horizontal infrastructure such as roads, water, and electricity.

Mr Oppong Nkrumah emphasized that housing is a need and a right, and the government wants citizens to live in places where they have dignity, comfort, and self-respect.

He explained that this is why the government is making its land bank available to the private sector to build, for example, 10,000 units to house individuals and families.

“It means that government reduces their costs since they don't have to buy the land or provide horizontal infrastructure because all of that increases the cost per unit."

The Housing Minister also disclosed that the government will work to build the capacity of private developers who can construct about 500 units and above.

He said the government would waive taxes for such developers to bring in their machines and other building equipment.

Mr. Oppong Nkrumah noted that since taxing such equipment will ultimately increase the cost of production and the price per unit of a house, “we rather let the private operator bring in his machines and equipment tax-free so that he can then apply it to building these properties and the prices come down.”