Ghana Govt Pricing Affordable Houses in Dollars: A Disgrace to the Nation, $42550 Priced Houses Not Affordable

The Ghana government has been under fire for pricing houses in dollars with the launch of the Pokuase Affordable Housing Project.

President Akufo-Addo has cut sod for the construction of 14,000 affordable housing units at Pokuase (Pokuase Affordable Housing Project) in partnership with the private sector. Presidents over the years have always initiated affordable housing projects in spite of this the housing deficits keep widening. What comes to mind when you hear of affordable housing?

The housing units have already been priced in dollars from today by the government meaning the cost will go up in Ghana cedis by the time they are ready.

This is a clear violation of the government’s own directive that no form of service or product should be priced in dollars in Ghana. The move has been met with widespread criticism, with many people calling it a disgrace to the nation.

The Ghana Housing Ministry has defended its decision to price houses in dollars, saying that it is necessary to ensure that the houses are affordable to foreign investors. However, this argument is flawed. The vast majority of Ghanaians do not earn in dollars, so they will be priced out of the market.

Ghana Govt Pricing Houses in Dollars (Pokuase Affordable Housing Project)

What are the prices of the Pokuase Affordable Housing Project housing units?

In fact, the prices of the houses are so high that even many foreign investors will not be able to afford them. A single-bedroom house is priced at a minimum of $20,700. This is equivalent to about GHS100,000, which is more than the annual salary of many Ghanaians.

The prices quoted by the government for the various housing units are as follows:

A studio with a 32-metre square area is worth $13,800

A one-bedroom house is worth $20700

A one-bedroom house is worth $34500

A one-bedroom house is worth $42550

The above prices are only the average and not the actual prices.  Clearly, this is not affordable housing for the poor, and it is not targeted at the low-income bracket.

Although the government has indicated that the amount is payable in dollars, the reality is that Ghana’s cedi is weak and will continue to fall in value by the time one decided to buy one of these houses.

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Again, after buying, although payment can be made in installments, the equivalent of the dollar amount in cedis will keep going up and in the end, a buyer would pay more. For instance, if you buy one of this one-bedroom house is worth $42550 today, it is worth 481673.23

The exchange rate between the US dollar and the Ghanaian cedi is currently 11.33000 GHS/USD. This means that $42,550 is equivalent to 481,673.23 GHS.

Here is the calculation:

42550 USD * 11.33000 GHS/USD = 481673.23 GHS
This Ghanaian cedi value will keep going up on a daily basis between the day you buy this house and when you finish paying. 

Ghana Govt Pricing Houses in Dollars is Indeed A Disgrace to the Nation

The government’s decision to price houses in dollars is also a violation of its own laws. In 2015, the government passed a directive that all goods and services must be priced in Ghana cedis. This was done to protect Ghanaian consumers from the volatility of the dollar exchange rate.

The government’s decision to ignore its own laws is a clear sign of disrespect for Ghanaians. It also shows that the government is not serious about addressing the housing crisis in Ghana.

The Ghana Housing Ministry’s decision to price the (Pokuase Affordable Housing Project) housing units Project houses in dollars is a disgrace to the nation. It is a clear violation of the government’s own laws and it is out of touch with the reality of most Ghanaians. The government must immediately reverse this decision and start pricing houses in Ghana cedis.