May 9, 2012

The opposition New Patriotic Party (NPP) slammed government’s partnership with GUMA of South Africa to provide 500 affordable housing units in Ghana describing the deal as a slap in the face of Ghanaian real estate developers.

This was contained in a statement issued by the opposition party on Tuesday.

Below is the full statement:

One sore point regarding STX, a South Korean company, was the side lining of Ghanaian estate developers who offered a detailed alternative, built by Ghanaians at half the price STX was quoting.

With the failure of the STX, all have hoped Ghanaian estate developers will be at the centre of governmental partnership and support in the delivery of affordable housing. It is therefore with great sadness that we learn government has embarked on yet another partnership with and support for a foreign company, GUMA of South Africa, to deliver 500 affordable housing units.

Ghanaian estate developers are once again side lined. Their proposal on partnership and support with government has not been responded to since 2010.

Between 2006 and 2008, the government of the day partnered Ghanaian estate developers to deliver to near completion 4,700 units of affordable housing in Borteyman- Nungua, Asorkore- Mampong, Kpone, Koforidua and Tamale.

With this record, it is difficult to understand how Ghanaian estate developers cannot be partnered and supported to deliver a mere 500 housing units, especially after 3 years of trying and failing with a foreign company.

Ghanaian estate developers, borrowing at interest rates around 30%, have managed to put up impressive housing developments such as the Regimanuel Gray Estates, the Manets and Edloms, Coastal Estates, Comets, Buena Vista Homes, etc.

With government support and partnership, Ghanaian estate developers would be able to deliver even more affordable houses.

The resort to partnership with a South African company is therefore a slap in the face of capable Ghanaian industry and expertise.

This resort to support and partnership with foreigners is not only detrimental to Ghanaian industry and enterprise, but also has many adverse national effects such as repatriation of profits and attendant weakening of our currency

The NPP strongly urges the government to reconsider its housing development strategy to focus on tapping the local expertise and capacity that Ghanaian estate developers possess.


Nana Akomea
Director of Communications NPP

Kwadwo Anim/