President John Mahama has cut the sod for the construction of the Green City Housing Project at Dedesua in the Ashanti Region, in what the government describes as a major step toward tackling Ghana’s housing deficit and promoting sustainable urban development.

The project, being undertaken by State Housing Company Limited, will be developed on 200 acres of land. It is expected to deliver 1,067 residential units to provide affordable housing for Ghanaians.

Addressing guests at the ceremony on Saturday, May 9, President Mahama acknowledged Ghana’s housing deficit, estimated at more than 1.5 million units, attributing the situation to years of supply falling short of demand, rising land values, escalating construction costs and limited access to long-term financing.

He also expressed concern about the rapid growth of informal settlements and increasing urbanisation, noting that many people continue to live in poor housing conditions.

“Today, more than half of the population of Ghana lives in urban areas, and projections indicate that this could rise to about 70 per cent of our population living in urban areas by the year 2050,” he stated.

According to the President, the country’s housing crisis could worsen significantly if urgent interventions are not implemented now.

President Mahama stressed that his administration remains committed to providing decent and affordable housing to improve public health, strengthen educational outcomes, boost productivity and stabilise communities.

As part of efforts to address the housing deficit, he disclosed that government is prioritising the completion of the Saglemi Housing Project while rolling out new social housing initiatives across districts to reduce barriers to home ownership and ensure geographical equity.

“At the heart of this effort is our innovative housing financial framework anchored on a GH¢3 billion revolving fund. This fund is going to be in partnership with government, organised labour and the private sector.

It will enable workers to acquire homes in cedis with manageable long-term repayment,” he said.

He explained that the revolving fund would involve government, organised labour, the Social Security and National Insurance Trust and Republic Bank Ghana partnering to finance housing development.

Under the arrangement, housing companies such as the State Housing Company will access credit to build houses, while banks provide mortgage facilities for workers to pay over a 15 to 20-year period.

President Mahama described the initiative as a Ghanaian-tailored solution designed to reflect the realities of the local economy and incomes.

The President further pledged that government would absorb the cost of constructing roads, and drainage systems within the estate to reduce the overall cost of the project and enable the State Housing Company to deliver the houses at more affordable prices.

The Green City Housing Project is expected to create jobs, improve access to decent accommodation and contribute significantly to government’s broader plan of resetting the country’s housing sector through affordable and sustainable developments.