Government Must Absorb Up to 40% of Housing Costs to Make Homes Affordable – SHCL Boss

The State Housing Company Limited (SHCL) has indicated that making housing genuinely affordable for low-income earners in Ghana will require direct government intervention to cover between 30% and 40% of the total cost of constructing homes.

Managing Director of SHCL, John Bawah, said the high cost of providing essential infrastructure, including roads, drainage systems and utility services, significantly increases the cost of housing projects, making it difficult for developers to offer homes at prices accessible to low-income households.

Speaking on the Citi Breakfast Show on Monday, October 12, 2026, Bawah explained that government support through infrastructure development and targeted subsidies would be critical to reducing construction costs and improving access to affordable housing.

He noted that under a social housing model, the government could provide essential infrastructure while developers concentrate on constructing the houses.

Alternatively, financial support could be extended to developers to help offset some of the costs associated with delivering affordable homes.

Bawah also highlighted the GH¢3 billion revolving fund announced by President John Dramani Mahama at the National Housing Finance Conference the previous week, describing it as a potential source of initial funding for government interventions aimed at converting commercially driven housing developments into social housing projects.

According to him, infrastructure expenses can account for as much as 35% to 40% of the total cost of a housing project.

He maintained that government absorption of these expenses could significantly reduce the final cost of homes and help address the housing needs of low-income households.

The SHCL managing director’s comments come amid public debate over the affordability of the company’s Surge Homes development at Amrahia, where prices for two-bedroom houses start at GH¢950,000.

Source: https://www.citinewsroom.com/2026/10/affordable-housing-needs-30-40-government-support-shcl/

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