Five thousand housing units are set to be constructed in the Ashanti Region over five years through a Ghanaian-Dutch business collaboration
The $200 million project is being undertaken by Danywise Estate & Construction and Netherlands investor, Kylla Europe BV.
Chief Executive of Danywise Estate & Construction, Frank Aboagye Danyansah, says the project will create over 3,000 direct jobs for skilled and unskilled persons.
He added that the company has observed challenges facing students in the various tertiary educational institutions in the country hence the steps to address them.
The project also has a component to build hostels for the University College of Management Studies (UCOMS) campuses in both Accra and Kumasi.
“Many are denied admission because of limited accommodation to house them. We have agreed in terms with UCOMS Accra campus and Kumasi campus to build hostels, including lecture halls during the first phase of the project,” he said.
Kwasowa in the Atwima Kwanwoma District and Adansi Fomena all in the Ashanti Region are a few of the areas earmarked to benefit from the project.
“600 houses in the first year which is 20 million dollars, then the rest will follow. A hundred housing units will be given to civil servants in Adansi Fomena to own houses and pay in a mortgage system for a period of 15 to 20 years,” Mr Frank Aboagye Danyansah said.
Ghana’s housing deficit has since 2000 been estimated at over 1.7 million units and should be inching close to 2 million by now.
Mr Danyasah says the project is aimed at providing an opportunity for lower income earners to acquire affordable houses
He revealed that though the project is starting in the Ashanti Region, there are plans to expand to the Bono Ahafo and Northern regions after the initial project is successfully executed.
Managing Director of Kylla, Dick Van Druten, says major indicators in Ghana currently makes the business environment ripe and conducive.
He says the business is open to more of such investments in the future.
“The Kylla Europe team is prepared to listen to investment opportunities from Ghana government and other corporate representatives,” he said.
Meanwhile, officials of the Ghana Real Estate Developers Association (GREDA), says the partnership is very critical to addressing the housing challenges, especially the in the northern part of Ghana.
Executive Secretary of GREDA, Sam Amegayibor, indicated that funding is one major hurdle that developers in the country face in the sector so securing such funding is commendable.
“Funding is one major hurdle in the industry with interest rate ranging from 20 to 24 percent and non-availability of long-term funding is one major problem.
“Real estate is not a supermarket item that overnight you can turn a tin of milk and sell, It takes a long-term to hatch a project and complete, so if you don’t have an access to long-term funding, it is a big issue,” he said.
Both parties, Kylla Europe BV and Danywise Estate & Construction, therefore signed a memorandum of understanding at the Golden Tulip Hotel in Kumasi, to authenticate the project.