The Chief Executive Officer of Danywise Estate and Construction, Mr. Frank Aboagye Danyansah, has disparaged Housing shortage in Ghana, which he said would need US$34 billion to tackle the deficit.
The nation’s housing needs is in short supply of 1.7 million units, and is anticipated to rise to 2 million by 2018, a state which he said, needed the introduction of realistic and conscious policies and private sector contribution to raise supply.
He said the government would have to construct 190,000 to 200,000 units annually for the next 10 years to bridge the gap. This is estimated to cost about US$3.4 billion.
He advised the newly appointed sector minister to modify the present Ghana Revenue Authority tax laws which he depicted as “bogus.” Currently, there is five per cent VAT on real estates.
He said the law states inter alia that before one could build affordable housing, it must be in talk with the sector Minister and the Minister of Finance without spelling out modalities to meet the criteria the company or person undertaking the construction.
He praised the current government for forming a separate Ministry for Works and Housing that would mostly focus on dealing with challenges in the estate sector and seal the demand and supply gap.
He said the new Ministry demonstrates the government has given major concern to the housing sector to “facilitate us to realize what we have been talking about that the affordable housing deficit gap is constantly increasing the ability of a family unit to spend up to 30 per cent of their gross yearly income on rent.”
The World Bank, in May 2016, stated that about 48 per cent of the youth from 15 to 24 years in Ghana were unemployed and predicted that the number would peak in the approaching decade, hence raising concerns about the preparedness of Ghana to deal with the predicament.