The Minister for Works and Housing, Kojo Oppong Nkrumah, has revealed that the National Rental Assistance Scheme (NRAS) has so far benefited 2,336 Ghanaians.
Speaking at a press briefing in Accra on September 30, 2024 the Minister shared details of the scheme’s achievements and plans for its expansion.
“We have spent about $30.4 million in this program and the money gets recycled because the beneficiaries pay back on a month-by-month basis,” Oppong Nkrumah stated.
He emphasised that the scheme was not just a spending initiative but an investment.
“It is an asset creation because it is an investment and when they pay, they pay their interest and then the float grows beyond their principal. We have a 100% recovery rate.”
National Rental Assistance Scheme
The National Rental Assistance Scheme was introduced by the Akufo-Addo administration to provide financial support to salaried workers by covering their rent advances, which can then be paid back in monthly instalments.
The scheme currently operates in six regions, but will be expanded to all 16 regions by 2025.
“What we are looking to do from 2025 as a government is to expand the coverage from the six operating regions and to break it down fully to the 16 geographic regions of the country,” Mr Oppong Nkrumah added.
He also confirmed plans to increase the budget to allow more Ghanaians to benefit from the program.
In addition to the Rent Assistance Scheme, Mr. Oppong Nkrumah provided updates on the government’s ongoing affordable housing projects across the country.
Five stalled housing projects are being revived, with two already completed. These include the Borteyman and Asokore Mampong projects, which are now fully occupied.
“We have about five stalled housing projects – Borteyman, Asokore Mampong, Koforidua, the State Housing Company’s project in Adenta and the Seglami affordable housing projects,” Mr Oppong Nkrumah stated.
The Minister also added that efforts are also being made to restart construction on the remaining projects, starting with the Koforidua Affordable Housing Project, which includes 342 housing units.
“This project comprises 19 blocks, 54 one-bedroom apartments and 288 two-bedroom apartments. We’ve worked with the State Housing Company to identify a private contractor who can pre-finance the completion of the work,” he noted.
Adenta and Seglami Projects
Another key project in the government’s affordable housing agenda is the state housing company’s project in Adenta.
According to Mr Oppong Nkrumah, the project had stalled due to a decade-long legal dispute that has only recently been resolved.
“This project was commenced in President Mills’ era. It was suspended because of litigation in the era of President Mahama and the litigation went on for around 10 years.
“Earlier this year, we managed to get the court’s injunction lifted so that construction could resume,” he explained.
Once completed, the Adenta project will deliver 76 units, including one, two and three-bedroom apartments.
One of the most significant projects discussed was the Seglami Affordable Housing Project, which initially aimed to provide 5,000 housing units.
However, only 1,506 units were partially completed before the project stalled.
Mr. Oppong Nkrumah revealed that the government had secured approval to resolve the project, with new developers set to be signed on by early November 2024.
According to him, “1,506 housing units were partially completed when we assumed office, but the horizontal infrastructure was missing – there was no water, sewage, or electricity. Cabinet in October 2022 gave approval for this project to be resolved and as of September two companies have been shortlisted to continue the work.”
The project, which initially faced significant delays due to financial mismanagement, is now moving forward with private sector participation to raise the remaining funds needed to complete the 1,506 housing units.
“We are told we need about $100 million to finish the project, with $46 million required for infrastructure and $60 million to complete the housing units,” Mr Oppong Nkrumah outlined.
The Works and Housing minister was quick to clarify that government was not selling off these stalled projects, instead it is working with the private sector to bring in funding and technology to complete the projects.
“We are not selling Seglami, Adenta or Koforidua to the private sector. We have invited private sector participation with their funding and technology. They bring in the capital, we use their money and technology to finish the projects and the completed units will be sold to members of our workers unions and government workers,” he explained.
“The fact that the government of Ghana does not have money in the treasury to finish these projects doesn’t mean they should remain stalled. We are being innovative in raising private capital to finish these projects,” he added.
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