Ghana's housing minister proposes national levy to attack 1.8 million-unit deficit
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Works and Housing Minister Ahmed Ibrahim wants Ghana to borrow Kenya's National Housing Levy model to fund affordable homes, admitting that any new tax on housing carries political risk.
Ghana's Minister for Works and Housing, Ahmed Ibrahim, has called for the introduction of a national housing levy to fund the construction of affordable homes and confront an estimated housing deficit of 1.8 million units. He made the proposal during a working visit to the State Housing Company, the state-owned developer.
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, and pointed to Kenya's National Housing Levy, which channels tax revenue into a fund used for housing development.
He acknowledged that politicians are reluctant to introduce a new levy for fear of public resistance but argued the country needs to consider long-term solutions. "Every politician is always afraid. I want to bring a levy for housing, but I'm scared. Ghanaians will revolt," he said, adding that Kenya's programme had delivered housing financed by a ring-fenced tax.
"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. "So if Ghana wants to build 200,000, 179,000 housing units every year, can't we do the same thing?"
The minister said housing should be treated as a national development priority rather than a partisan issue and called on both major political parties to work together on lasting solutions. He identified housing, water and employment as three basic needs the country must address, and said large-scale construction would create jobs across the building industry.
He also proposed engaging students from technical and vocational education and training institutions in the construction industry as part of efforts to expand housing delivery, arguing that a levy-backed programme could increase the supply of affordable homes while providing work for young people with technical skills.