UNIVERSITY OF GHANA COLLEGE OF HUMANITIES PUBLIC HOUSING IN GHANA: A CASE STUDY OF THE GREATER ACCRA METROPOLITAN AREA BY ERNEST TEYE AYUMU (10525786) THIS THESIS IS SUBMITTED TO THE UNIVERSITY OF GHANA, LEGON IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MPHIL IN GEOGRAPHY AND RESOURCE DEVELOPMENT DEGREE DEPARTMENT OF GEOGRAPHY AND RESOURCE DEVELOPMENT MAY 2022 University of Ghana http://ugspace.ug.edu.gh i DECLARATION I declare that I have conducted this study. My effort towards the award of Master of Philosophy Degree in Geography and Resource Development at the University of Ghana. And that all information used as apart from my field data and findings has been duly acknowledged. 27/05/2022 ………………………….. Date…………………. Name: Ernest Teye Ayumu (Candidate) 27/05/2022 ………………………………... Date………………………. Dr Austin Dziwornu Ablo (Principal Supervisor) . 27/05/2022 ………………………………... Date………………………. Prof. Bjørn Enge Bertelsen (Co-Supervisor) University of Ghana http://ugspace.ug.edu.gh ii DEDICATION I dedicate this thesis to All my family members and friends. University of Ghana http://ugspace.ug.edu.gh iii ACKNOWLEDGEMENT First of all, I thank Almighty God for the knowledge and strength through this academic journey. I am also grateful to my God-sent supervisors, Professor Bjørn Enge Bertelsen and Dr. Austin Dziwornu Ablo, for their guidance and patience. I am forever indebted to you for your contribution to my academic journey. My sincere gratitude also goes to Professor Martin Oteng-Ababio for his coaching and guidance. He has been a rock of inspiration in my life. Again, I am grateful to the Urban Enclaving Futures Project for funding my tuition and my research. This gift is priceless, and I say thank you! Furthermore, I would like to acknowledge my parents, Mr. Benjamin Teye Ayumu and Miss Rose Kupleh, for their prayers and motivations. Also, my heartfelt goes to my uncle, Mr. Felix Kenney Nyaunu, for his provisions and push for me to always put my studies first. My special thanks also go to my auntie, Gladys Ladjer Ayumu, who has also been my rock for all these years. I say God richly bless you. I have been surrounded by love and support from my friends as well; my appreciation goes to Yowome Kumasi, Basil Tungbani, Divine Mawuli Asafo, and Abigail Klu Forson for helping me one way or the other in putting this work together. Lastly, my genuine gratitude goes to all the respondents in Borteyman, Kpone-Katamanso, Tema community 1, and Dawhenya for their corporation and contribution to my fieldwork. Not forgetting the rich information from my key informants from State Housing Company Ltd., Tema Development Company Ltd., and Tema West Municipal Area. University of Ghana http://ugspace.ug.edu.gh iv ABSTRACT The global urban population has seen significant growth over the past decades. The rapid rate of urbanisation has created critical infrastructure challenges to sustainable development. Among these challenges is housing. More individuals have become homeless, the number of slums and squatter communities is growing, and house prices are rising. In Ghana, policymakers have struggled to tackle the housing crisis through various programs. The role of the state in housing provision has changed due to the recent subscription to neoliberal policies. This change in the government’s role in housing provision has affected supply and access to housing, for example, which encourages private ownership and construction of housing, especially in the urban space. Within this context, the study sought to analyse the role and acceptance of public housing as a solution to the housing challenges within the Greater Accra Metropolitan Area (GAMA). Four communities with public housing projects in GAMA were studied. A mixed-methods approach, triangulating surveys, key informant interviews, and observation, was deployed. The 2015 National Housing Policy was analysed to ascertain the shift in the government’s approach to public housing. The study showed that people prefer public housing through rent or buying rather than private formal or informal housing units. The security of tenure associated with dwelling in public housing is the main reason why people prefer public housing. Despite the preference for public housing, most respondents have not tried accessing public housing due to their perception of bias in the allocation of public housing. The study also examined the spatiality of public housing and found that because most people settled in their respective communities to be closer to their place of work, they are unwilling to secure public housing, most of which are situated far from the city centres. And will not be willing to rent or buy a public housing unit at places far from their place of work. The study recommends a revised housing policy and provision approach that will ensure that the housing demands of both formal and informal employees and low- and high-income families are met. University of Ghana http://ugspace.ug.edu.gh v Table of Contents DECLARATION ........................................................................................................................ i DEDICATION ........................................................................................................................... ii ACKNOWLEDGEMENT ....................................................................................................... iii CHAPTER ONE ........................................................................................................................ 1 GENERAL INTRODUCTION .................................................................................................. 1 1.0 Background of Study ........................................................................................................ 1 1.1 Problem Statement ........................................................................................................... 4 1.2 Research Questions .......................................................................................................... 6 1.3 Objectives of the Study .................................................................................................... 7 1.4 Significance of the study .................................................................................................. 7 1.5 Scope of the study ............................................................................................................ 8 1.7 Organisation of the thesis ................................................................................................. 8 CHAPTER TWO ....................................................................................................................... 9 LITERATURE REVIEW .......................................................................................................... 9 2.0 Introduction ...................................................................................................................... 9 2.1 The concept and definition of housing ............................................................................. 9 2.2.1 Affordable and public housing ........................................................................................ 11 2.3 Housing in Ghana ........................................................................................................... 11 2.4 Factors causing housing deficit in Ghana ...................................................................... 16 2.5 Public housing in Ghana ................................................................................................ 20 2.6 Housing finance in Ghana .............................................................................................. 23 2.7 Historical overview of public housing in Ghana ............................................................ 25 2.7.1 Pre-independence housing .............................................................................................. 25 2.7.2 Post-independence housing in Ghana ............................................................................ 26 2.8 Housing Policies in Ghana ............................................................................................. 32 2.9 Structural Adjustment and housing in Ghana ................................................................ 34 2.10 Key state institutions in Ghana’s housing sector ......................................................... 37 2.11 Land tenure and housing in Ghana ............................................................................... 41 2.12 Theoretical Framework ................................................................................................ 46 2.12.1 Unpacking governmentality .......................................................................................... 48 2.12.2 New (liberal) governmentality and the dynamics of housing ....................................... 50 2.12.3 Neo-liberalism as governmentality ............................................................................... 52 University of Ghana http://ugspace.ug.edu.gh vi 2.12.4 Empirical Review.......................................................................................................... 55 2.13 Chapter summary ............................................................................................................. 60 STUDY AREA AND METHODOLOGY............................................................................... 62 3.0 Introduction .................................................................................................................... 62 3.1 A history of Accra .......................................................................................................... 62 3.2 Profile of Greater Accra Metropolitan Area .................................................................. 64 3.2.1 Tema Metropolitan Area ................................................................................................. 66 3.2.2 Kpone-Katamanso Municipal Area ................................................................................ 68 3.2.3 Ningo-Prampram District Area ....................................................................................... 70 3.2.4 Tema West Municipal Area ............................................................................................ 73 3.3 Research method ............................................................................................................ 74 3.3.1 Research Paradigm ......................................................................................................... 74 3.3.2 Research Approach ......................................................................................................... 74 3.3.3 Research design .............................................................................................................. 75 3.3.4 Target population ............................................................................................................ 76 3.3.5 Sampling technique and size ........................................................................................... 77 3.3.6 Data sources .................................................................................................................... 79 3.3.7 Methods of data collection .............................................................................................. 79 3.3.8 Data Analysis .................................................................................................................. 82 3.3.9 Positionality in the field .................................................................................................. 83 3.3.10 Validity ......................................................................................................................... 84 3.3.11 Ethical considerations ................................................................................................... 85 3.3.12 Chapter summary .......................................................................................................... 86 CHAPTER FOUR .................................................................................................................... 87 THE CHANGING ROLE OF THE STATE IN HOUSING PROVISION ............................. 87 4.0 Introduction .................................................................................................................... 87 4.1 A review of post-independence housing policies in Ghana ........................................... 87 4.2 The National Shelter Strategy (1993) context ................................................................ 89 4.3 The changing role of the state ........................................................................................ 90 University of Ghana http://ugspace.ug.edu.gh vii 4.4 The Ghana National Housing Policy (NHP 2015) context ............................................ 92 4.5 National Housing Policy (NHP 2015) and Access to Housing ...................................... 94 4.7 Socio-demographic characteristics and housing preferences ....................................... 95 4.8 Housing status of the respondents .................................................................................. 97 4.8.1 Community-level variation in housing tenure ............................................................. 99 4.9 Housing preferences ..................................................................................................... 100 4.9.1 Factors influencing housing preference .................................................................... 100 4.10 Benefits associated with dwelling in a public housing unit ....................................... 102 4.11 Relationship between income and preference for private or public housing ............. 105 4.12 Chapter summary ....................................................................................................... 107 CHAPTER FIVE ................................................................................................................... 108 HOUSING FINANCING, ACCESS, AND LOCATION OF PUBLIC HOUSING ............. 108 5.0 Introduction .................................................................................................................. 108 5.1 Mode of financing housing .......................................................................................... 108 5.2 Respondents’ opinion on the affordability of public housing ...................................... 111 5.3 Community-level variations on the affordability of housing ....................................... 112 5.3.1 Borteyman affordable housing project ......................................................................... 115 5.3.2 Kpone Community 26 affordable housing project ........................................................ 117 5.4 Challenges encountered in accessing current housing ................................................. 119 5.5 Access to public housing .............................................................................................. 121 5.6 Biases in the allocation of public housing .................................................................... 124 5.7 Location of public housing projects and their success or failure ..................................... 127 5.7.1. Location of public housing ....................................................................................... 127 5.8 Community-level analysis on motivating factors for settling ...................................... 128 5.9 Location of public housing and its success or failure .................................................. 130 5.10 Locational influence on the decision to rent or buy a housing unit ........................... 131 5.11 Causes of failure in public projects in Ghana ............................................................ 133 Case 1: The failed Saglemi housing project .......................................................................... 135 5.12 Measures to improve upon affordable housing projects ............................................ 137 5.13 Chapter summary ....................................................................................................... 139 SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS......................................... 140 6.0 Introduction .................................................................................................................. 140 6.1 Summary of the study .................................................................................................. 140 6.2 Summary of the main findings ..................................................................................... 141 University of Ghana http://ugspace.ug.edu.gh viii 6.2.1 Housing policies and the changing role of the government in housing provision .... 141 6.2.2 Viability of public housing in improving housing provision in Ghana ..................... 142 6.2.3 Housing finance and access to public housing ......................................................... 142 6.2.4 Spatiality of public housing projects and their success or failure. ........................... 143 6.3 Conclusions .................................................................................................................. 143 6.4 Policy Recommendation .............................................................................................. 145 REFERENCES ...................................................................................................................... 147 APPENDIX 1 ......................................................................................................................... 158 APPENDIX 2 ......................................................................................................................... 159 APPENDIX 3 ......................................................................................................................... 160 University of Ghana http://ugspace.ug.edu.gh ix List of Tables Table 1: Summary of house types in Ghana and Accra ........................................................... 16 Table 2: Summary of the target population and sample size ................................................... 78 Table 3: Socio-demographic information of respondents ........................................................ 96 Table 4: Analysis of housing tenure status .............................................................................. 98 Table 5: Analysis of housing tenure status in the study communities ..................................... 99 Table 6: Analysis of housing preference ............................................................................... 100 Table 7: Reasons behind the housing preference of the respondents .................................... 101 Table 8: Analysis between income and preference for private or public housing ................. 105 Table 9: Mode of financing housing ...................................................................................... 108 Table 10: Opinion on public housing affordability................................................................ 111 Table 11: Reasons behind respondents’ choice on public housing affordability................... 113 Table 12: Price list of Borteyman affordable housing units .................................................. 117 Table 13: Price list of Kpone Community 26 affordable housing units ................................ 117 Table 14: Challenges in accessing current dwelling .............................................................. 120 Table 15: Access to public housing ....................................................................................... 122 Table 16: Respondents opinion on biases in the allocation of public housing ...................... 124 Table 17: Motivating factors for settling in the respective communities .............................. 127 Table 18: Motivating factors for respondents settling in their respective community .......... 128 Table 19: Estimation of locational influence on the decision to rent or buy a house ............ 132 Table 20: Causes of public housing project failure in Ghana ................................................ 134 Table 21: Measures to improve public housing ..................................................................... 137 University of Ghana http://ugspace.ug.edu.gh x List of Figures Figure 1: Map of Greater Accra Metropolitan Area ................................................................ 65 Figure 2: Study area map of Tema Metropolitan Area ............................................................ 68 Figure 3: Map of Kpone-Katamanso Municipal ...................................................................... 70 Figure 4: Map of Ningo-Prampram District ............................................................................ 72 Figure 5: Analysis of benefits associated with dwelling in a public housing ........................ 103 Figure 6: Reasons for choosing private housing .................................................................... 105 Figure 7: Opinion of public housing affordability in the study communities........................ 112 Figure 8: Challenges encountered in accessing current dwelling .......................................... 120 Figure 9: Reasons behind not attempting to access public housing....................................... 122 Figure 10: Outcomes of those who accessed public housing ................................................ 123 Figure 11: Biases in the allocation of affordable housing ..................................................... 125 Figure 12: Opinion on the location of public housing and how it influences its success or failure ..................................................................................................................................... 130 University of Ghana http://ugspace.ug.edu.gh xi List of Plates Plate 1: Newly completed Borteyman affordable housing ................................................................. 116 Plate 2: Portions of newly completed Borteyman affordable housing ................................................ 116 Plate 3: Completed portion of the Kpone affordable housing ............................................................. 118 Plate 4: Completed portion of the Kpone affordable housing ............................................................. 118 Plate 5: Abandoned Saglemi housing project ..................................................................................... 136 Plate 6: Abandoned Saglemi housing project ..................................................................................... 136 University of Ghana http://ugspace.ug.edu.gh xii LIST OF ABBREVIATIONS BOG Bank of Ghana CBD Central Business District ERP Economic Recovery Programme FINSAP Financial Sector Adjustment Programme GAMA Greater Accra Metropolitan Area GCB Ghana Commercial Bank GLSS7 Ghana Living Standard Survey 7 GOG Government of Ghana GREDA Ghana Real Estate Developers Association GSS Ghana Statistical Service IMF International Monetary Fund LPHA Limited-Profit Housing Associations MMDAs Metropolitan, Municipal, and District Assemblies MWH Ministry of Works and Housing NHMF National Housing and Mortgage Fund NHP National Housing Policy (2015) PPBME Policy Planning, Budgeting, Monitoring, and Evaluating Directorate PPP Public-Private partnership PCPA Prefabricated Concrete Product Association REIT Real Estate Investment Trust SAP Structural Adjustment Programme SHC State Housing Company Limited SOEs State-Owned Enterprises SPSS Statistical Package for Social Sciences SSNIT Social Security and National Insurance Trust TDC Tema Development Company Limited UNOPS United Nations Office for Project Services University of Ghana http://ugspace.ug.edu.gh 1 CHAPTER ONE GENERAL INTRODUCTION 1.0 Background of Study The global urban population is increasing rapidly, the world’s urban population in 2018 was 55 per cent, and this figure is projected to increase to 68 per cent by the end of 2050 (UN, 2018). Though Africa is the least urbanised continent globally, it is one of the fastest urbanising continents. According to UN-DESA (2014), the urban population of Africa increased from 27 per cent in 1950 to 40 per cent in 2015 and is projected to reach 60 per cent by 2050. This urban population growth is believed to continue at its rapid rate in the coming years. Current projections show that the population of Africa will increase from 1.8 billion as seen in 2015 to 2.44 billion by 2050 (Peter & Bakari, 2018). Though about 60 per cent of Africa’s population resides in rural areas, the rate of rural-urban migration is also increasing rapidly, thus, influencing urban growth. The urbanisation rate in Africa recorded an average of 3.5 per cent between 2000 and 2015. Experts project that the urban population of Africa will be over 50 per cent by 2037 (UN Population Division, 2014). Like many developing countries, Ghana is one of the fast-urbanising countries in Africa. Ghana recorded a 3.78 per cent urban rate between 2005 and 2015 with an urban population of 54.0 per cent (Bah, Faye, & Geh, 2018). The rapid urbanisation rate in Ghana results from both high rates of natural increase of the national population and rural-urban migration (Grant & Yankson, 2004). Urbanisation in Africa is faced with numerous challenges, with many cities in Africa struggling to take in the urban population. The consequence is pockets of urban poverty in major urban centres, most notably in the form of squatter settlements, along with all of the primary features of overcrowding: traffic congestion, unemployment, stark inequalities, a lack of social and community networks, and crippling social problems such as crime, violence, low living standards, and inadequate basic infrastructure such as housing. Melnikas University of Ghana http://ugspace.ug.edu.gh 2 (1998) defined housing as a specific and relatively limited, physically, biologically, and socially close place where people and groups can live their biosocial lives by receiving services, performing house chores, and other biosocial activities. Housing plays a vital role in a country’s development. Decent housing with a serene neighbourhood promotes good health and increases the productive level of labour, fosters social cohesion, and can be used as a tool of employment (Arku, 2009a). Despite recognising housing’s role in improving people’s socio-physical well-being, housing provision, accessibility, and affordability is still a considerable challenge for many African countries to overcome (Kwofie, Adinyira, & Botchway, 2011). Like many African countries, one significant challenge still confronting Ghana’s urbanisation is housing. The current housing deficit in Ghana is over 2 million units (Amegayibor, 2020; Amoateng & Duah, 2021). This considerable housing deficit emanates from the inflow of people from rural areas to cities, the rise in natural increase of the population, as well as the growing numbers of expatriates in the country, and international migrants, especially from ECOWAS states (Afrane, Bujang, Liman, & Kasim, 2016). The origins of Ghana’s housing shortage can be linked to colonial times, when there was no housing policy in place to properly fix the housing supply for low-income earners in city centres (Yankson & Gough, 2014). The government of Ghana was directly involved in housing provision in the 1950s and 1960s when Ghana just attained independence from colonial rule, even though most of the government interventions in housing were unsuccessful (Kwofie et al., 2011). The housing challenge intensified during the 1980s when the country came under severe financial crises (Arku, 2006; Obeng-Odoom, 2011). The late 1970s and the early 1980s were a period characterised by severe economic decline, mainly in Sub-Saharan Africa, to which Ghana was part. The Bretton Wood institutes (IMF and World Bank) came to the aid of University of Ghana http://ugspace.ug.edu.gh 3 Ghana through the implementation of the Structural Adjustment Programmes (SAP) and Economic Recovery Program (ERP). This saw a turning point in the ideological base of national socio-economic policies in Ghana (Owusu, 2005). The liberalisation of Ghana’s economy led to an improvement in the macroeconomic indicators of the economy, especially at its early stages. However, it was associated with some consequences that still have visible imprints (Owusu, 2005). The neoliberal policies implemented affected the provision and affordability of housing in Ghana. As part of the SAP and ERP conditionalities, the government was discouraged from directly providing housing. The government was limited only to providing an enabling environment for private housing developers to flourish through cuts on taxes, providing loans for private housing developers, and expanding the mortgage market (Pacione, 2013). This was made possible by the “Accelerated Growth Strategy” under the structural adjustment programme, which sought to strengthen the position of the private sector as the mechanism for sustainable development and poverty reduction (Obeng‐Odoom, 2012). This has resulted in massive foreign direct investment in the country, thus internationalising the economy and a feature of neoliberalism (Jessop, 2002). Most Ghanaians lost their jobs in the formal sector during the SAP and ERP implementation through the retrenchment exercise. Approximately 147,000 public sector workers lost their jobs between 1960 and 1991 (Gockel & Vormawor, 2004). Unemployment rates soon increased, especially in urban areas, with Accra on top of the chart. For instance, in 1987/1988, the unemployment rate in Ghana was less than 2 per cent, but this rose to over 8 per cent in 2000. In the early 1990s (1991/1992), the official number of people reported as weak was 7,931,000 (Obeng‐Odoom, 2012). This has subsequently increased the inequality gap between the rich and the poor. For example, before the liberalisation of Ghana’s University of Ghana http://ugspace.ug.edu.gh 4 economy, the salary ratio of senior to junior civil servants was less than 2:1, but by 1991, it had risen to 10:1 (Owusu, 2005). The liberalisation of the economy also saw a cut in government subsidies on agricultural inputs such as fertilisers, pesticides, and weedicides, making agriculture unattractive to the rural economically active population, subsequently leading to a rapid increase in rural-urban migration. These challenges associated with the poor economic performance of the country in the 1980s coupled with the liberalisation of the economy have weakened the position of the majority of the urban dwellers to access and afford houses, especially the urban poor (Kwofie et al., 2011). With the increase in the urban poor, affordable public housing can be central in meeting the housing needs of urban dwellers. In most countries, affordable public housing has helped in creating access to housing. For instance, in Austria, some initiatives encourage supply-side housing subsidies that target multi-story and single-family housing primarily through effective Limited-Profit Housing Associations (LPHA). In Vienna, 80 per cent of the population rent apartment, with more than half of the population paying social rent. These examples of interventions in housing have created a sustainable means of accessing and affording houses, especially for the urban poor (Falk & Rudlin, 2018). However, in cities of developing countries, especially in Sub-Saharan Africa, affordable public housing remained limited to serve the populace, especially the urban poor. In Accra, the situation is similar, and housing has remained a significant challenge associated with urbanisation. 1.1 Problem Statement Globally, the provision of affordable housing has become a significant challenge for national authorities, especially in developing countries. More people are becoming homeless, the number of slums and squatter settlements is growing, and house prices are rising. According University of Ghana http://ugspace.ug.edu.gh 5 to the United Nations (UN), the urban population would reach about 5 billion in 2030, up from 1 billion in 1960, 2 billion in 1985, and 3.3 billion in 2008 (UNDESA, 2019). Affordable housing must be available for social security, sustainable growth, and intelligent urbanism (Boafo, Kim, & Kim, 2017). The provision of adequate and decent housing is a sign of a country’s progressing socio-economic condition; therefore, housing delivery will continue to be at the heart of social growth and social policies in many countries, especially in the developing world (Giddings, 2007). Despite the critical role of housing in promoting social and economic stability, Ghana’s housing deficit continues to grow beyond the reach of national efforts. The effect of the severe housing crisis is amplified for poor and low-income communities in the face of widespread unemployment (Boachie–Yiadom, 2016). Housing in Accra has become highly costly, excluding middle and lower-income classes from the private housing sector (Buckley & Mathema, 2008). As a result, most of the city’s inhabitants live in low-income neighbourhoods and slums, where petty landlords create substandard housing with crowded living conditions (Arku, Luginaah, & Mkandawire, 2012; Yankson, 2012). The Centre on Housing Rights and Evictions (2004) attributes the lack of affordable housing for low-income Ghanaians to weak government policies and civil society’s inability to provide housing for both the poor and middle-income people through adequate interventions. According to the Ghana statistical data, approximately 78.7 per cent of households had insufficient sleeping rooms, which meant that one sleeping room could accommodate more than two people. The country’s housing situation is dire, indicating that the past housing policies and strategies have failed to meet their stated goals of providing affordable and sustainable housing for Ghanaians (Addo, 2014). Many studies have called for the greater involvement of the private sector in housing provision to reflect the current economic era (see Fält, 2019; Gbevillah, 2015; Wuni, Boafo, Owusu University of Ghana http://ugspace.ug.edu.gh 6 Yeboah, & Dinye, 2018). However, with the increasing number of urban poor, public affordable housing can be central in meeting the housing needs of the urban population (Falk & Rudlin, 2018). For instance, in Singapore, about 80 percent of the housing stock in the country is social housing. Also, in Vienna, the capital of Austria, 80 percent of the population rent apartment, with more than half of the population paying social rent (Falk & Rudlin, 2018). It is therefore essential to look at the prospects of public housing in meeting the housing needs of a rapidly growing urban population in Ghana. Also, it is argued that an individual’s or a household’s decision to live in an urban area is influenced by housing and neighbourhood characteristics. In this regard, the decision-making process takes into account the relationships between elements such as housing availability, dwelling types, housing quality, neighbourhood characteristics, and ease of access to different activities such as business, shopping, commute to work, and recreation (see Amao, 2021; McFadden, 1978; Olayiwola & Olaitan, 2019; Waddell, Berry, & Hoch, 1993). In Ghana, the location of some initiated public housing projects has been criticised for being too far from the nearby towns and cities, and that contributes to the failure of such housing projects. It is also critical to understand the dynamics and constraints of public housing provision in other to improve public housing delivery in Ghana. This thesis contributes to knowledge of housing by examining the acceptance of public housing as a viable solution to housing Ghana’s growing urban population. It also explores the role of spatiality in the success or failure of public housing projects in Ghana. 1.2 Research Questions Three central questions guide the study: 1. How have post-independence housing policies shaped public housing in Ghana? 2. What is the role of spatiality in the success of public housing projects in GAMA? University of Ghana http://ugspace.ug.edu.gh 7 3. How does the local socio-economic, political context, and financing influence who benefits from public housing projects in Ghana? 1.3 Objectives of the Study Main Objective: Examine the viability of public housing and the role of spatiality in the success or failure of public housing projects in Ghana. Sub-objectives: 1. Explore the economic and political policy trajectories that have shaped the state’s role in the housing sector of Ghana. 2. To explore whether public housing can still be a housing option in improving the provision of houses in Ghana. 3. To examine housing financing and access to public housing in the Greater Accra Metropolitan Area. 4. To analyse the distribution of public housing projects in the Greater Accra Metropolitan Area and the role of spatiality in their success or failure. 1.4 Significance of the study In Ghana, providing affordable housing for the majority of the people has remained a big concern. Many initiatives have been proposed as a solution to the ever-increasing housing demand that significantly outstrips supply. However, inadequate housing remains one of the country’s most pressing socioeconomic issues. Public housing over the years has been subjected to criticism for failing to meet the housing needs of the populace. In the same vein, the emerging presence of the private sector in housing provision in the country is also criticised for being exclusive and cannot still bridge the housing deficit in the country. This swing in the appropriate sector to drive housing provision leaves out the housing preferences of the University of Ghana http://ugspace.ug.edu.gh 8 populace, and this needs to be addressed. Therefore, this study will contribute to our understanding of the housing preference of people and their general perception of public housing that will guide policy formulation in bridging the housing deficit in the country. 1.5 Scope of the study The geographical scope of the study is Greater Accra Metropolitan Area. The study selected Tema Community 1, Dawhenya, Kpone, and Borteyman. These four communities were chosen because they are among the communities with major public housing projects in the Greater Accra Metropolitan Area (GAMA). In terms of context, the study looked at the change in housing policies since post-independence. And the governmentality approach of Michel Foucault was deployed to analyse how and why these housing policies were implemented. The study also examined the viability of public housing, public housing accessibility, and affordability, challenges, and measures of improving housing provision in Ghana. 1.7 Organisation of the thesis The study’s introduction is presented in Chapter One, covering the study background, the problem statement, the objectives, and research questions. Chapter Two reviews relevant literature on public housing and how it connects to policies, accessibility, affordability, and project failures. The study area and methodologies are presented in chapter three. In chapter four and chapter five, the analysis, presentation, and interpretation of results are presented. Chapter Six presents the summary, conclusions, and recommendations of the study. University of Ghana http://ugspace.ug.edu.gh 9 CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter discusses the literature on housing, housing deficit, the housing situation in Africa, and an overview of housing in Ghana. The private sector contribution to housing delivery in Ghana, the government’s incentive package for real estate developers, the factors triggering Accra’s housing shortage, Accra’s urban housing delivery problems, housing policy responses, and the study’s empirical analysis and conceptual context are also broached. The theoretical and conceptual framework within which the research is grounded is also presented in this chapter. 2.1 The concept and definition of housing Housing is a complex topic and concept with many facets and literary ambiguity in both research and linguistics (Ruonavaara, 2018). The term “house” and “dwelling” is both a noun and a verb (Ruonavaara, 2018). Housing can thus refer to a tangible object or the action or procedures of providing a house. The housing sector plays a significant part in a country’s socioeconomic development (Sheibani & Havard, 2021, June 18). It is a vital prerequisite for economic growth and people’s well-being (see Collier & Venables, 2013; Danso-Wiredu & Loopmans, 2013). Sheibani and Havard (2021, June 18) argue that the housing sector tends to play a significant role in total economic activity. This is why governments consider housing a priority. Because of the complex nature and importance of housing, scholars have attempted to theorize housing to conceptualize and interpret housing issues. They considered the feasibility and desirableness of theorizing housing from four perspectives outlined by Hannu Ruonavaara: firstly, theory of housing; secondly, a theory about housing; thirdly, theory from the housing; lastly, theory of housing. Theory of housing, according to Ruonavaara necessary to construct a theory that would serve as a reference point for all housing-related concerns (Ruonavaara, University of Ghana http://ugspace.ug.edu.gh 10 2018). The intricacy of housing makes it impossible to define generally without any universally agreed definition (Henilane, 2016). Sheibani and Havard (2021, June 18) indicated that housing emerges from man’s basic material necessities and that political ideologies influence how political systems respond to these demands. Henilane (2016) defined housing as a building or part of a building where a household can dwell year-round and meets specific regulatory requirements, such as a home address. According to Rapoport (2000), housing is a structure built for one or more people to live in. Housing is defined by Omoniyi and Jiboye (2009) as any sort of lasting sanctuary for a man that provides him with an identity. As a result, they regard houses as having a cultural heritage. Godwin (1998) sees housing as a space that a person can call their own, which provides solitude and protects them. Housing implies different meanings to different people, and its definition is dependent on the geographical environment, the dominant political ideology, and the setting and intent of the definition. As a result, UN-Habitat has a broad definition of housing: “Housing is a multi- dimensional concept that refers to the activity, process, and objects of dwellings, as well as their environment” (UN-Habitat, 2013). This definition encompasses housing as both an activity and property or tangible product, taking into account the physical form of the housing and its local environment, implying that housing has a health dimension. The WHO defines healthy housing as a home, a place that protects privacy, contributes to physical and psychological well-being and supports its inhabitants’ development and social integration – a central place for human life” (Bonnefoy, 2007). In the 2015 National Housing Policy, Ghana’s Ministry of Water Resources, Works and Housing (MWRWH) defined housing as “a multi-dimensional commodity that includes University of Ghana http://ugspace.ug.edu.gh 11 physical shelter, the related services and infrastructure, and the inputs such as land and finance required to produce and maintain it. Housing also covers the solutions geared at the improvement of the shelter and the environment in which it exists” (MWRWH, 2015). This definition of housing also encompasses a wide range of housing characteristics with critical components that could form the foundation for high-quality housing. Housing is defined as more than just a place to live; it also includes the amenities that come with it. 2.2.1 Affordable and public housing There is no single definition of affordable housing because of the various socio-economic circumstances in which housing is supplied and required across various countries, regions, cities, and socioeconomic groupings. According to a standard method advocated by UN- Habitat, affordable housing is defined based on household income and housing spending. Housing is considered unaffordable if it consumes more than 30 per cent of a family’s monthly or annual income (UN-Habitat, 2010). In Ghana, affordable housing is defined as a household spending less than a third of its gross yearly income on rent or housing costs (including taxes, insurance, and utilities) (MWRWH, 2015). Public housing is a government-funded initiative that offers low-income families with rental homes. In this study, public housing and affordable housing are used interchangeably. 2.3 Housing in Ghana Housing is a critical basic need in any society because it affects life’s physical, economic, environmental, and social aspects. In Ghana, the housing sector is categorised into formal and informal groups (see Arku, 2009a; Arku et al., 2012; Tipple & Korboe, 1998). The formal category includes both public and private developers who have concentrated on middle-high- class housing over the years. Self-builders and small-scale businesses predominantly serve low-income households and fall into the informal category (Arku, 2009a). The informal sector has dominated and continues to dominate housing growth. Housing production before University of Ghana http://ugspace.ug.edu.gh 12 independence was largely informal. The communal lifestyle of the citizens inspired the majority of house plans and developments. As a result, compound houses dominated the pre- independence housing style. The majority of private owner-occupied housing projects were not built according to a master plan. As a result, they often lack basic facilities such as water, sanitation, and, in some cases, electricity. Because of high migration rates in search of employment and better living conditions in urban areas, rental housing is a recent feature, primarily found in urban Ghana (Owusu-Ansah, Ohemeng-Mensah, Abdulai, & Obeng- Odoom, 2018). The need for policy became evident as migration increased, resulting in housing and other urban issues (Aziabah, 2018). Housing policy may affect housing growth by ensuring the provision of basic amenities for comfortable living. Furthermore, it can have a significant effect on housing growth as the supply-and-demand gap widens. Housing policy in Ghana has mostly influenced demand and supply, particularly in the formal and middle-to-high-income housing sectors. Few policies have addressed informal housing, particularly for low-income households. (Tipple & Korboe, 1998, p.246). This, in effect, has created an increasing need for housing in the country. The term “housing need” refers to the disparity between available housing and housing demand. It depicts the relationship between population growth and the expansion of housing stock. Housing delivery and access in any part of Ghana are low (Konadu-Agyemang, 2001). Efforts by individuals, private housing developers, and the government in housing provision in Ghana is disintegrated and not sustainable. This situation has added to the housing deficit in the country. The housing deficit is one of the country’s socioeconomic problems (Wuni et al., 2018). Census data shows that the annual growth of housing stock from 2000 to 2010 was the highest ever (4.4 per cent), surpassing the previous high of 3.7 per cent from 1984 to 2000 and outpacing the population University of Ghana http://ugspace.ug.edu.gh 13 growth rate of 2.5 per cent during the same time (GSS, 2014). This, however, has not resulted in a decrease in the housing deficit. In 2000, there was a housing deficit of 1,526,275, which rose to 1.7 million in 2010, and currently, the housing deficit is over 2 million (Hormenoo & Kofie, 2021). Even though the increasing population is used to explain the increased deficit in housing, it is also true that the rate of growth in housing stock is substantially lower than what is expected to reduce the deficit significantly. For example, Arku (2006) estimates that 1.2 million new housing units were required by 2005, based on a housing shortage of 300,000 units from the 2000 census. Thus, 133,000 new housing units had to be delivered each year to offset the deficit. Annual distribution, on the other hand, was just 25,000 units per year. The annual housing demand was projected to be between 110,000 and 140,000 units in the draft national housing policy for 2009, with a yearly production of only 40,000 units (GoG, 2009). If these figures are based on a household size of 5.1, the situation worsens when a household size of 4.4 is used (2010 census). To understand the increasing housing deficit as illustrated above. It is important to focus on the efficacy of neoliberal policies. The implementation of neoliberal economic policies has drawbacks, as shown by the unprecedented rise in slums (Jones, 2012) According to the UN‐ Habitat (2004), a systemic lack of adequate and affordable housing and inadequate public policies has resulted in an unparalleled increase in slums. Makasa (2010) argued that strictly market-oriented solutions would fail to provide the housing needs of the poor. It might be more fitting to strike a balance between market liberalization and state-led housing policies. Government actions must focus on housing low-income households while preserving market sanctity. In terms of housing supply, in 1982, public housing constituted only 10 per cent of all housing stock in Ghana, while individual private houses formed over 80 per cent of housing in the University of Ghana http://ugspace.ug.edu.gh 14 country. From the latter part of the 1980s to 2010, no public housing units have been added to the existing stocks, with most housing projects left uncompleted. In 2006, for example, Ghana Real Estate Developers Association (GREDA) was able to deliver only 2,500 housing (below 8 per cent) units from the annual delivery requirement of 199,000, with private individuals providing about 90 per cent (Akuffo, 2007). In the decade preceding 2010, the average housing growth rate was 4.4 per cent (GSS, 2014). Assuming a compounded annual growth rate, this resulted in total housing stock of 3,392,745 in 2010 and a projected figure of 5,218,626 in 2020. Since 1984, the average number of people per house has decreased, indicating a rise in homeownership because of improving economic conditions. The total number of people per house in 2010 was 7.3. According to the projected housing stock for 2020, the average number of people per house would decrease to 5.9. In 2010, rural areas accounted for more than half of the housing stock (57.7 per cent). However, by 2020, rapid urbanisation is estimated to have increased the percentage share of total housing stock in urban areas to slightly more than half (Cobbinah & Niminga- Beka, 2017). Between 2000 and 2010, the percentage stock of houses increased by 60.1 per cent, outpacing the pace of population growth (30.4 per cent). During the same period, there was a 1.7 million housing backlog (MWRWH, 2015). Ghana’s Housing Policy estimates that 5.7 million rooms will be required by the end of 2020, with a preferred occupancy threshold of two people per bed to bridge the gap and provide housing to new households. Over 100,000 housing units are needed yearly to meet the current housing demand (Amegayibor, 2020). The housing sector has a large share of informal activity, consisting of actors who buy their land to develop incrementally based on available resources. This allows for more cost-effective construction, but it can also compromise efficiency. Only a few formal developers tend to the low-income segment of the housing market, with the majority focusing on the middle to high- University of Ghana http://ugspace.ug.edu.gh 15 income segment. Despite the involvement of formal real estate developers catering to the lower-income group, house prices are frequently beyond the reach of low-income earners due to the foreign currency pricing of the housing market in Ghana. Tema Development Company (TDC), for example, charges GHC97,750 (US$17,000) for its cheapest home (TDC, 2021). However, the national average annual income is GHC33,937 (US$5,891), while the average annual expenditure is GHC 12,857 (US$2,231) (GSS, 2019a). Most households (42.1 per cent) own their home in Ghana, while 29.7 per cent live in rented housing. Rent-paying tenants make up 27.6 per cent of the total, with those staying in a room with a friend or relative without paying rent and squatting responsible for the remaining 0.5 per cent (GSS, 2019). However, homeowners constitute only 27.8 per cent in the Greater Accra Region, with 40.9 per cent renting (GSS, 2019). On average, Ghanaians tend to build and own homes in phases, which explains the widespread horizontal growth that has resulted in urban sprawl. Separate houses (28 per cent), semidetached houses (4.7 per cent), huts (4.8 per cent), and flats/apartments (4.8 per cent) account for the majority of occupied house types. Due to their comparatively high cost and an ingrained socio-cultural preference for individualised spaces, flats and apartments have not been in high demand. However, the expatriate community and non-resident Ghanaians have recently fuelled a rise in demand. They see these types of accommodations as safer than the conventional method of building incrementally on land that is often subjected to numerous sales, ownership conflicts, and outright theft. Unfortunately, workers are frequently deterred from applying for mortgages because of the high-interest rates charged by different mortgage and financial institutions, opting instead to use the equity in personal loans and other sources of income. Currently, the government is funding the construction of affordable homes and improving access to housing credit for government employees via mortgages as part of its efforts to close University of Ghana http://ugspace.ug.edu.gh 16 the housing gap. Projects that had been abandoned since 2007 have been revived and completed or are in different stages of completion (Meqasa, 2020). One of these projects is to be delivered by the United Nations Office for Project Services (UNOPS), which has agreed to deliver 200,000 units in total, with 6,500 planned to be completed in the first phase by December 2020. In addition, the government has entered into several private-public agreements (PPP). For example, in 2019, the government signed a public-private partnership (PPP) agreement with Solin, a Hungarian private company, to build 10,000 affordable housing units across the country (Munene, 2019). Table 1: Summary of house types in Ghana and Accra Type of dwelling Type of dwelling All regions: number Greater Accra Region Detached house 28.7 1,670,392 197,062 Semi-detached house 7.1 412,329 88,215 Flat/ Apartment 4.7 270,642 70,201 Compound house (rooms) 51.5 2,997,508 605,902 Huts/buildings 3.8 221,260 14,435 Tent/ kiosk/containers/ living quarters 2.4 137,720 77,716 Uncompleted buildings 1.6 94,913 33,094 Other 0.2 12,843 3,772 Total houses 100% 5,817,607 1,090,397 Source: GSS, 2014. 2.4 Factors causing housing deficit in Ghana A significant cause of the housing deficit in Ghana is the lack of continuity of projects when governments have changed, a setback in the provision of public housing. Consequently, the current housing crisis in the country has been exacerbated. For example, the Government of Ghana pursued numerous programs in 2005 to increase housing supply, such as the affordable housing program, which aimed to construct over 100,000 housing units through Private-Public Partnerships (PPP) across the country (BoG, 2007). However, after a change of government in 2009, all the projects were abandoned, with no apparent reason given to complete them. University of Ghana http://ugspace.ug.edu.gh 17 Hundreds of families could have been accommodated if this housing scheme had been completed (Ghanaweb, 2012). Another significant factor contributing to Ghana’s housing shortage is rural-urban migration. In the rural areas, demand for housing is low mainly due to the low population in those areas. However, if people migrate from the rural areas to urban areas for reasons which are mainly economical and socio-cultural, the demand for housing exceeds the supply. According to Ofori (2020), this has exacerbated urban housing shortages. As a result, housing supply has lagged in demand, resulting in clusters of slums and neighbourhoods made up entirely of kiosks and containers with little in the way of plumbing or drainage. This can be used to depict a situation of urban poverty, especially in major cities and towns. Sub-Saharan Africa, for example, had 199 million slum dwellers in 2005, accounting for 20 per cent of the world’s total slum population, and had the highest annual urban growth rate of 4.58 per cent and the highest annual slum growth rate of 4.53 per cent due to acute housing shortages and poor housing conditions. On the other hand, Ghana had 5.4 million slum dwellers in the same year and is expected to reach 7.1 million by 2020. According to UN-Habitat (2006), Accra, Kumasi, and Sekondi- Takoradi are the worst-hit cities. Ghana’s urban centres are experiencing increased population due to rural-urban migration, and they are bearing the brunt of rapid urbanization. Ghana’s urban population is expected to rise at a rate of 52 per cent of the country’s overall development, with severe housing shortages and inadequate sanitation at the heart of this rapid urbanization (UN-Habitat, 2006). Housing has become one of the government’s most critical problems because of increased population growth and urbanization. In several parts of the world, rapid population growth has been accompanied by a relatively slow housing growth rate in recent decades. In Ghana, for example, rapid population growth is putting a strain on urban infrastructure and deteriorating University of Ghana http://ugspace.ug.edu.gh 18 social amenities and housing conditions, especially in the Accra and Tema metropolitan areas (Zhou et al., 2021). Aside from rapid population growth, mortgage financing is also crucial to the housing challenge in Ghana. The mortgage industry has proven to be the most competent and superior financier of the population’s housing needs in developing countries (BoG, 2007). However, finding a decent, affordable house/home is the most challenging task for many of Ghana’s population. This is because a lack of savings and borrowing constrains the Ghanaian economy compared to more developed countries. Furthermore, as Okonkwo (1998) points out, the need for capital in all sectors of the economy results in an under-funded housing finance system. Furthermore, most Ghanaian banks are portfolio lenders, which exacerbates the issue of housing finance (Osafo, 2020). This implies that banks operate a low-cost, low-risk market in which mortgage lending complements other investment activities. In other cases, banks have short-term capital and are reluctant to lend on a medium- or long-term basis; support for mortgage lending, which takes around 25 to 30 years to complete, is not common; and all these issues have devastated the housing industry. Entry to decent, affordable housing has now become the greatest problem facing a larger proportion of Ghana’s population (see Donkor- Hyiaman & Owusu-Manu, 2016; Karley, 2002; Owusu-Manu, Pärn, Donkor-Hyiaman, Edwards, & Blackhurst, 2016). Ghana’s land tenure system is complex and characterised by legal pluralism, a situation that also affects housing provision (see Asafo, 2020; Ehwi & Asafo, 2021). Uncertainty about land ownership, long delays in approvals and title issuance, unscrupulous land sales, failure to comply with planning requirements, delayed provision of infrastructure and other services, ill- disciplined land agents, and corruption in all aspects of the industry have all contributed to University of Ghana http://ugspace.ug.edu.gh 19 market distortions and inefficiencies (see CDD, 2000; Denchie, Ablo, & Overå, 2020). A high percentage of vacant land is available for development in Ghana but is not utilised due to multiple ownership claims and associated conflicts (Asafo, 2020). The cost of land to buyers is, therefore, significantly higher than it should be. Developers can thus only buy a limited amount of land for construction, which affects housing output. The traditional land administration system, in which land ownership takes various forms, each with its own set of legal rights, has been blamed for Ghana’s flawed land tenure system (see Appiah, 2007; Ehwi & Asafo, 2021). Ownership is often ambiguous, and procedures are slowed by bureaucracy. As a result, obtaining vast tracts of land for real estate development has become a major challenge for developers. Furthermore, the lack of an effective land ownership inventory mechanism has resulted in numerous land sales, posing a problem for real estate developers. As a result of court battles, this conflict has often resulted in unnecessarily long delays in ventures (Appiah, 2007). The high cost of construction materials limits infrastructure development and affordable housing for residents (Danso & Manu, 2013). In Ghana, building materials account for half of the overall construction cost. This high cost of building materials is due to an over-reliance on imported raw materials for buildings (Yeboah, 2005). Many urban communities lack basic infrastructures like water, good roads, drains, and electricity. Newly emerging urban areas lag in infrastructure provision from the assemblies (UN-Habitat, 2011). According to housing developers, infrastructure costs between 10 and 30 per cent of the price of a home, depending on the site’s position on existing infrastructure. On the other hand, developers end up bearing all of these costs, which affects production costs. As a result, it is difficult to build houses that are accessible to the public. University of Ghana http://ugspace.ug.edu.gh 20 2.5 Public housing in Ghana Housing subsidized by the government at a lower-than-market rate is known as public housing. It is direct government intervention in the housing sector, typically through public agencies, through housing construction. This comes in the form of government funding for non-profit organisations to provide affordable housing. This can be achieved through land purchase incentives, state grants, loan guarantees, and subsidised loans (see Arku, 2009a; Brown & Yates, 2012; Elsinga & Wassenberg, 2014) or the establishment of public agencies to provide public housing. This is a popular phenomenon (see Boelhouwer, 2013; Elsinga & Wassenberg, 2014; Haffner, 2009), and the target group usually is people who, if left on their own, are unable to obtain housing from the market. In Ghana, public housing was provided on a rental basis by two government agencies: the Tema Development Corporation and the State Housing Corporation. Even though policy documents prioritise housing for low-income families, civil and public servants have been the primary beneficiaries. Because of the scarcity of accommodation, Asabere (2007) describes that housing allocations began at the top of the government employee hierarchy and never reached the bottom of low-income households. In addition, most public houses were not built with low-income families in mind. Although the proportion of public housing is small in Ghana, it is vital for numerous reasons. First, the rent charged by public housing is generally lower and affordable to some middle- income and most high-income earners compared to market rents. This, in effect, provides a little relief in household budget allocations for housing because housing forms “a large component of household expenditure” (UN-Habitat, 2011). Secondly, public housing occupants are saved from paying their rents in advance, which would have been a requirement if they were renting from the market. Many scholars argue that the requirement of paying rent in advance hinders people in accessing housing, not necessarily the high rent levels (see Tipple, Korboe, Garrod, & Willis, 1999; UN-Habitat, 2011; Yankson & Gough, 2014). For example, University of Ghana http://ugspace.ug.edu.gh 21 the housing sector profile survey showed that households spend between 2.5 and 11.5 per cent of their income on rent monthly (Adzorgenu-Amponsah, 2019). The motive for requesting rents in advance by landlords is to invest those lump-sum rents in building or expanding more rental units. Housing construction to most landlords is an investment, and one of the financing sources for the construction is the rent from the tenants. Another reason is that it assures the security of tenure and reduces default rates (Arku et al., 2012) because most rent agreements are informal (verbal), and most tenants do not have secure jobs and regular sources of income. The percentage of household income spent on housing is not high by general standards. The average annual household income is GH¢16,373 (GSS, 2019a). On the part of the government, public housing is essential because government employees will be more willing to accept transfers to other parts of the country where their services are most needed. The challenge of finding suitable housing associated with transfers is taken care of in public housing. Finally, the government uses public housing providers to support low-wage earners in the public sector, which generally improves the productivity level in the public service. This explains why SHC and TDC are still involved in efforts to produce affordable housing. Affordable housing is a term that is highly affected by the local context, making it difficult to apply global standards to it. For others, it is described as a function of household income and expenditure, with a ceiling of 30 per cent relative to overall household income and expenditure (O’Dell, Smith, & White, 2004). However, this varies by country; for example, until the 1980s, Canada had a household income threshold of 25 per cent (Hulchanski, 2005). In India, a limit of 40 per cent is applied (LaSalle, 2012), with affordability determined by a household’s economic status. A variant of this concept looks at how to make housing more affordable to the poor, who are described as having a daily household income of less than USD 2.3. Others describe affordable housing as housing with prices at or below a predetermined, often arbitrarily defined price point that is considered affordable to those with lower incomes (Angel, University of Ghana http://ugspace.ug.edu.gh 22 2001). A variant of this concept considers government incentives when deciding what constitutes affordable housing (defined in certain quarters as low-cost housing that requires supply-side subsidies). Affordable housing must be adequate in quality and location and does not cost so much that its inhabitants cannot meet their other essential living costs or are jeopardized in their enjoyment of other fundamental human rights (McBride Murry, Berkel, Gaylord‐Harden, Copeland‐Linder, & Nation, 2011). Other factors that affect affordability include efficiency, wages, place, prices, and access to basic human rights. In this regard, affordable housing is often characterized as housing of a certain size (determined by the number of rooms or square footage) or of a certain quality. According to MWRWH (2015), affordable housing is the household’s ability to spend up to 30 per cent of its total annual income on housing rent or purchase, including all related taxes, insurance, and utilities. When a home’s annual carrying expense reaches 30 per cent) of a household’s annual revenue, it is considered unaffordable. Given the average household income, housing affordability measures the number of people who can afford to buy a home on the open market. It aids in the decision-making process for government involvement in the housing market. Housing affordability is also a complex and contentious concept to define (see Bramley, 2012; Chiu, 2007; Haffner, 2009). The question has been raised as to whether affordability should be described solely in terms of housing costs or include other deprivations such as accessibility and crowding. According to Whitehead and Cross (1991), a concept based on income is more acceptable in a framework where most housing is distributed through the market. Haffner and Boumeester (2010) used an expenditure- to-income ratio to calculate housing expenditure and describe affordability regarding the annual price or rent charged for housing consumption. University of Ghana http://ugspace.ug.edu.gh 23 The Ghana housing profile describes affordability as a household's ability to spend up to 30 per cent of their gross annual income on rent, including all related taxes, insurance, and utilities (GoG, 2015). In Ghana, the question has been which income level to use and what form of housing to consider. In Ghana, housing affordability is primarily a product of low incomes. Both the rental housing market and the homeownership market have extremely high housing costs. According to UN-Habitat (2011), only about 3 per cent of households can afford the cheapest housing on the open market. The high cost of land and building materials and the high-interest rates and down payments needed to obtain credit have resulted in high house prices. Furthermore, policies such as minimum plot ratios, which increase the cost of the property, and the formal sector’s self-contained housing style lead to high house prices (UN-Habitat, 2011). According to the housing sector profile, most renter households cannot afford the cheapest formal-sector housing available. These figures may be used to justify government interference in the housing market. 2.6 Housing finance in Ghana A housing development is capital intensive, therefore sufficient mortgage financing is required to provide widespread access to high-quality housing (Agnello, Castro, & Sousa, 2020). However, housing finance is scarce in many developing countries, resulting in a housing shortage and expensive rents in metropolitan areas. The housing finance market is critical because it contributes significantly to any country’s development, taking into account the economic, social, and developmental implications (Aha, Ayitey, & Martey, 2016). The key institutions that finance housing in Ghana are Social Security and National Insurance Trust (SSNIT), Social Security Bank (now SGSSB Bank), State Insurance Corporation (SIC), and the defunct Bank for Housing and Construction (BHC). Some mortgage institutions are Home University of Ghana http://ugspace.ug.edu.gh 24 Finance Company and First Ghana Building Society (FGBS), which at a point in time provided mortgage facilities to the working class of the population. The relatively high cost of borrowing challenged these institutions’ mortgage activities, thereby limiting the expected impact on the middle-and higher-income class benefiting from the housing industry, (BoG, 2007). Both banking and non-banking systems, including insurance and the capital markets, play essential roles in the housing sector in Ghana. The non-banking system has microfinance institutions that offer formal, semi-formal, and informal services open to all classes of households (BoG, 2007). Banks like FNB Bank, Société Générale Ghana, Republic Bank, Cal Bank, Fidelity Bank, Stanbic Bank, and Omni Bank offer a variety of mortgage products like home construction, home improvement, home purchase, refinancing, and land purchase (PWC, 2020). Averagely, mortgages in Ghana are given for fifteen (15) years with a maximum loan- to-value ratio of 85 per cent. According to the Bank of Ghana (2019), the total mortgages in Ghana amounted to GH¢114 million (US$19,789,042); this amount increased to GH¢216 million (US$37,495,028) by the year 2018, representing about 90 per cent increment. However, the rate of non-performing loans in 2019 was 13.9 per cent, showing a significant decline of 4.3 per cent from 2018. The average annual interest rate on mortgages offered to potential homeowners varies from 30 to 42 per cent. For most people, particularly low-income families, this is unaffordable. This condition is not specific to the housing market but rather represents Ghana’s overall borrowing costs (Acheampong & Anokye, 2015). Public policy is at the centre of attempts to solve housing financing. Improved underwriting would encourage banks to make more housing loans to lower-income borrowers while staying secure. Furthermore, the state may assist developers in lowering their borrowing costs by creating affordable housing developments less costly, for example, by pledging a certain University of Ghana http://ugspace.ug.edu.gh 25 portion of the housing cost to shield developers from losses caused by buyers or renters defaulting on their payments for completed units (Acheampong & Anokye, 2015). Recently, the government created the National Housing and Mortgage Fund (NHMF) in partnership with Ghana Commercial Bank, Republic Bank, and Stanbic Bank to improve access to mortgage and residential housing finance. Under the auspices of the NHMF, 250 housing units were completed as phase one, with another 200 housing units expected to be completed at Tema Community 22 (PWC, 2020). Similarly, an Affordable Housing Real Estate Investment Trust (REIT) was established through the NHMF in association with GCB Securities to make available rental homes for public sector workers. The scheme is premised on a rent-to-own model where public sector workers can access decent and affordable homes for between 15 to 20 years and pay a residual value to own the property (BoG, 2019). The scheme offers lower interest rates (11.9 to 12.5 per cent) than the nominal minimum rate of 24 per cent for non-foreign currency or cedi-denominated mortgages. 2.7 Historical overview of public housing in Ghana This section presents the general housing interventions and policies various governments have undertaken from the colonial era to the present. The section is divided into two, pre- independence housing and post-independence housing. 2.7.1 Pre-independence housing The first intervention by any government in housing in Ghana dates from the colonial era under Governor Gordon Guggisberg, where in the 1920s, a housing scheme, “Dispossessed Person’s Housing Scheme”, was introduced (Kwofie et al., 2011). The scheme provided building material loans to displaced or affected persons because of government development programs to build their own homes. The scheme took effect in 1923, and by 1933, 118 loans involved a University of Ghana http://ugspace.ug.edu.gh 26 total cost of £9,280. However, in 1933 the scheme was halted as it was perceived by the government to be expensive (Konadu-Agyemang, 2001). Since then, little attention was given to housing until the 1939 earthquake. Accra, now the capital of Ghana, was stroked by an earthquake on 22nd June 1939. The earthquake destroyed some housing units, which called for the government to intervene. The then government funded 1000 two-bedroom housing units at Osu, Chorkor, Mamprobi, Kaneshie, North-West Korle Gonno, Abbose-Okai. By 1955, 1250 public housing units were completed and occupied by public and civil servants and the Armed Forces (Kwofie et al., 2011). The housing units were subsided for rent, and the tenants were given a chance to own the housing units through hire-purchase (BRRI, 1970). The government of Alan Burns (1943) produced a four (4) year development plan. The plan had housing as one of its top priorities. The plan sought to construct affordable, well-built houses with more local materials with a budgeted fund of £0.8 million (Konadu-Agyemang, 2001). Two housing schemes were published under the government’s plan and policies. The first scheme was under the control of the Department of Social Welfare. Under this scheme 1, 2, and 3-bedroom apartments were constructed and rented to all people at an economical cost, with an exemption for labourers who did not have to pay economic rents. The second scheme (Scheme B) was labelled Town and Council Housing. This scheme was centred in Accra, Kumasi, and Sekondi-Takoradi (Adinyira & Botchway, 2011) 2.7.2 Post-independence housing in Ghana In post-independence, many interventions were carried out, but experts and stakeholders considered these interventions unsuccessful. During the era of Dr. Kwame Nkrumah, Ghana’s first president, three (3) Developmental plans were formulated to provide adequate housing. The first was the five-year plan which spanned from 1951 to 1956. This plan led to the University of Ghana http://ugspace.ug.edu.gh 27 establishment of the Tema Development Corporation (TDC) and the State Housing Corporation (SHC) (Bank of Ghana, 2007; Benjamin, 2008; Konadu-Agyemang, 2001). The main goal of TDC was to provide low-income workers of the newly created Tema with affordable housing. The works of TDC led to the creation of the communities of Tema, creating over 2255 housing units. The Schockbeton Housing Scheme was also created to provide 168 houses in Accra, Kumasi, and Sekondi-Takoradi. This scheme was led by a Dutch firm that introduced pre-cast members that claim to be less expensive but later became more costly than expected, and consequently, the entire scheme was abandoned (Adinyira & Botchway, 2011). Again, there was a Roof Loan Scheme that provided loans and assistance to public sector workers under the auspices of the United Nations. However, inefficiency on the part of management resulted in the completion of only 2517 housing units out of the proposed 6700 was realised from the same two (2) million allocated funds (Nelson & Ayeh, 2009). Under the Nkrumah regime, the State Housing Corporation (SHC) was established to provide housing for the workers in the civil and public service class and was trusted with providing long-term housing finance. The activities of SHC were stretched to cover the nine (9) regions in the country at the time, and the Ministry of Works and Housing played a supervisory role over the activities of SHC, with projects funded directly from the central government. In 1995, SHC was converted into a limited liability company and since operated as a commercial enterprise. The scheme of SHC was flexible; it allowed workers to own their own homes by paying gradually through monthly deductions from their salary (Konadu-Agyemang, 2001). The second Development Plan by Nkrumah on housing provision was from to 1964. The plan was to support the recommendations and initiated programmes of the UN commission to put up housing units. The plan sought to continue and propagate the “Roof Loan Scheme” which focused on assistance from employers to employees through housing loans and self-help University of Ghana http://ugspace.ug.edu.gh 28 housing sites and services (Nelson & Ayeh, 2009). The plan was not materialised because it lacked need assessment, and hence, the plan lacked projected targets and output (Konadu- Agyemang, 2001). Nkrumah aimed at urban housing dwellers in areas that were witnessing a housing shortage, but this was not achieved when he was overthrown in a coup d’état in 1966. The National Liberation Council (NLC), led by General Joseph Ankrah, overthrown Nkrumah in 1966. The NLC implemented a two (2) year development plan. The plan had TDC and SHC as critical stakeholders. The plan was to build 2,000 housing units yearly, but only 1000 units were completed. The completed 1000 housing units had just 2.7 per cent of single rooms. In terms of location, 63.6 per cent of the housing units were in the country’s capital Accra, 9 per cent in Kumasi, 7.5 in Sekondi-Takoradi, and 11.3 per cent in Cape Coast. The main goal of the scheme was to make it possible for the productive sector of the economy to be at the forefront of housing provision in the country through a rational and balanced approach. Housing to be generated by the (Nelson & Ayeh, 2009). Also, the plan sought to clear and reduce the pace of slum growth in urban areas. The administration of Busia was committed to reducing the housing deficit confronting the country, especially in the major cities, by initiating a one-year development plan. The one-year development plan (1970-1971) was the first plan under the second republic following. The main goal of this plan was to increase the house occupancy rate of 10 persons per house against a housing need estimated at 26,000 units per year. This plan was unsuccessful because it failed to specify the housing units and their accompanying cost. Busia’s scheme added only 25 per cent (SHC-764, TDC-1012 = 1776) of the targeted 8,000 units purely due to a lack of funds (Konadu-Agyemang, 2001). University of Ghana http://ugspace.ug.edu.gh 29 In 1972, the National Redemption Council, led by I. K. Acheampong, took over the government and created the National Low-Cost Housing Committee under the Ministry of Works and Housing supervision. This plan was allocated 10 million cedis ($9,803,921.77, $1=¢1.02, 1970) to build less expensive houses for low-income urban dwellers across the ten (10) regions. The plan had a projection to yearly deliver 2,3000 housing units (Decardi-Nelson & Solomon- Ayeh, 2011). By June 1975, the scheme completed 5,466 housing units at the cost of 47,602,678 cedis. The initial cost estimate of a housing unit ranged from 2,000-4,000 cedis; however, the price of the completed 5,466 units increased to 10,000 cedis ($9,803.92). This left out the population class the plan sought to target, leading to the abandonment of the plan in 1976 (Nelson & Ayeh, 2009). The government accepted his limitation with funding and asked the private sector to supplement its effort (Konadu-Agyemang, 2001). The Liman government acknowledged the seriousness of the housing challenge that confronts the country and thus constructed 1990 housing units for rentals through SHC and 288 by the TDC (see Benjamin, 2008; Nelson & Ayeh, 2009). In the 1970s, the economy of Ghana was performed very poorly. There was an energy crisis, high cost of oil, high balance of payment deficit, high increase in the importation of building materials, reduced external funding, etc. These challenges brought the construction industry to a standstill. This development led to the establishment of the Tile and Brick factory by the Liman government to boost local building materials (see Benjamin, 2008; Konadu-Agyemang, 2001; Nelson & Ayeh, 2009). The PNDC/NDC administration under J. J. Rawlings implemented many housing schemes to address the housing problems. These schemes were the National Shelter Strategy (NSS), Ghana Vision 2020, the Structural Adjustment Programme (SAP), and Economic Recovery Programme (SAP/ERP). In 1986, the National Shelter Strategy was commenced by first forming a National Housing Policy Committee by the Ministry of Works and Housing University of Ghana http://ugspace.ug.edu.gh 30 (MOWH) to review the housing situation in the country. The attention of the committee was centred on the restricting factors of housing delivery in the country. According to the government, it was necessary as it will guide government policy and action plans in providing adequate and appropriate housing units for the people mainly in the urban areas. The committee also focused on housing finance, building materials, land, physical planning, infrastructure, and management efforts toward housing delivery. This policy and plan span from 1987 to 1990. This was formed from the MOWH’s want to strengthen its planning competence to implement housing policies. Unlike the previous schemes, the policy aimed to establish an enabling environment and framework whereby housing provision will be enhanced rather than full participation of the government to deliver housing (see BoG, 2007; Konadu-Agyemang, 2001). The plan intends to promote the use of local building materials, improve rural housing strategy, strengthen monitoring, management, and coordination of shelter programmes, improve land acquisition, and increase access to finance and participation of women in the housing sector. The second scheme, “Ghana Vision 2020” had the First Medium-Term Development plan from 1997 to 2000 with the target of providing housing to low-income earners as a means of improving their living conditions (BoG, 2007). The plan introduced a new policy under the Social Security scheme, which allowed contributors to withdraw part of their contribution to buy a house. Unfortunately, due to a lack of funds, private sector participation, and political will, none of the housing plans was implemented (BoG, 2007). From 1985 to 2000, there had been no addition of public housing to the existing one. The NPP government, led by Kuffour, realising the housing crises the country is facing, initiated a plan in 2001 to construct 20,000 affordable housing units. In 2007 almost 4,500 housing units comprising bedsitter, single- and two-bedroom apartments had commenced at Borteyman and Kpone in Accra, Asokore Mampong in Kumasi in the Ashanti region, Akwadum site Koforidua in the Eastern Region, Tamale, to be completed by June in 2009 (Arku et al., 2012). This University of Ghana http://ugspace.ug.edu.gh 31 scheme targeted civil and public servants. Unfortunately, none of these housing units was completed, and the scheme was discontinued in 2009 when there was a change of government (see Ahadzie & Amoa-Mensah, 2010; Nelson & Ayeh, 2009). The projects remained uncompleted until 2014 when they were handed over to the Social Security and National Insurance Trust (SSNIT) and Tema Development Company Limited (TDC). The government has approved establishing a National Housing and Mortgage Finance Scheme in the 2018 Budget and Economic Policy to provide complete residential housing construction across the country to promote social equity and stimulate the economy. The Ministry of Finance has also developed a scheme and founded the National Housing and Mortgage Finance Fund (NHMF) to resolve the two (2) key constraints to homeownership by Ghanaians, which is access to mortgages to buy homes by low to middle-income earners and high cost of financing for the construction of residential homes. Through the Program, the government would make it easier for employees to access lower- cost local currency mortgage loans and construction financing and promote the growth of communities across the country. Under the Rent to Own Program, low-income public employees would be able to rent property from a Real Estate Investment Trust (REIT) at a fair rate. The government has partnered with three banks - Stanbic, Republic, and GCB Bank Limited - to provide cedi mortgages at competitive interest rates to public sector employees and construction finance to local developers through the National Housing and Mortgage Fund (NHMF). The government has also partnered with GCB Securities to launch the first Affordable Real Estate Investment Trust (REIT), which will buy properties and rent them to public sector employees at affordable rates for 15 to 20 years before paying a residual value to own them. REIT has selected properties for the pilot phase at TDC Community 22 Affordable Housing University of Ghana http://ugspace.ug.edu.gh 32 Enclave. GCB Bank, in partnership with the Tema Development Corporation (TDC), built 204 units/flats for public sector employees in the first phase of the pilot project, which will be replicated across the country. The 204 completed houses, which began construction in February 2020, cover 20.80 acres of the enclave’s total 37.54 acres of land, with 2.8 kilometres of roads, 4.8 kilometres of drains, 510 meters of precast concrete storm drain, and a total of 1.9 kilometres of the fence wall, as well as water and electricity. The pilot housing scheme has 50 two-bedroom detached houses, 118 two-bedroom semi-detached houses, and 36 one-bedroom semi-detached houses (TDC, 2021). In September 2018, Ghana’s government and the United Nations Office for Project Services (UNOPS) teamed up to build 100,000 affordable housing units worldwide. Sod was cut to construct 6,500 housing units in Afiaman, near Amasaman in Accra, a year ago. The United Nations Office for Project Services (UNOPS) has committed to providing 100,000 affordable housing units in Ghana as the first step of its commitment. 2.8 Housing Policies in Ghana The colonial-era did not have any national housing policy. The housing intervention in this era was mainly to provide the British colonial civil servants with decent housing away from the locals, so as not to contract diseases such as malaria and yellow fever (Tipple & Korboe, 1998). As a result, most of the European townships were built on high ground (ridge), and the design was that of a bungalow type (Yankson & Gough, 2014). The housing and sanitation conditions of the locals were of little interest to the colonial rulers. The colonial rulers started to pay attention to local housing after the rat plague in Kumasi in 1942 and the 1939 earthquake in Accra (Tipple & Korboe, 1998). Also, the need to provide housing for the returned veterans of the second world war aroused the interest of the British colonial government in housing provision (Arku, 2009a). University of Ghana http://ugspace.ug.edu.gh 33 Nonetheless, more purposeful attempts to develop the housing sector kicked off when the country gained republic status in 1951, although with a concentration on formal housing development dominated by the public sector. Seven subsidised schemes were completed in Accra, Kumasi, and Takoradi. These schemes are aimed at providing middle- to high-income earners with decent housing. After Ghana gained independence in 1957, the housing situation was still in distress; this made housing an essential aspect of government social policies. The government saw housing as social welfare good. And as such much effort was devoted to providing public housing and loan schemes to promote housing delivery (Tipple & Korboe, 1998). Numerous development plans have been introduced as a measure to developing the housing sector. For example, a five- year (1959-64) plan was proposed to build 6,700 housing units over the period (Arku, 2009a); also, a seven-year (1964-70) plan was designed to construct 60,000 housing units across the country. The Roof Loan Scheme, supervised by the Department of Rural Housing, supported individuals who have built houses to the roofing level to finish them. In the urban areas’ loans were made available for the completion of windows and doors, while in the rural areas, the loans were purposefully for foundations, windows, and finishing. Again, the Wall Protection loan scheme made available loans to rural folks to plaster, paint their walls, and control erosion. All this is directed towards the protection of their walls. The government got involved in housing delivery through the Tema Development Corporation and State Housing Corporation. Other institutions such as the Bank for Housing and Construction. The First Ghana Building Society (FGBS), State Insurance Corporation (SIC), the Social Security and National Insurance Trust (SSNIT), and the Low-Cost Housing Committee were established to supplement the efforts to increase housing delivery. Occupants of government-built who decided to own their dwellings were given subsidies to be able to do so, and interest rates on loans borrowed from University of Ghana http://ugspace.ug.edu.gh 34 state housing finance institutions were subsidised. It can be said that post-independence saw the direct provision of housing by the government. In the 1970s, the role of housing shifted from a mere social good to promoting economic growth (Harris & Arku, 2007). This subsequently led to the liberalisation of the housing sector, a shift in the housing policy which capitalises on the government providing an enabling environment for the private sector to thrive in the housing sector (Harris & Giles, 2003). Therefore, following the global trend, housing policy in Ghana underwent reforms. As indicated earlier, before the 1980s, the SHC and TDC were the principal state agencies that provided public housing under social welfare principles. The TDC constructed housing in the industrial port city of Tema, while the SHC provided housing in large towns across the country. Several additional programmes were implemented through other agencies to provide public housing. The National Redemption Council military government constructed a little more than 6,000 houses out of a targeted 23,000 across the country through the Low-Cost Housing Committees from 1972 to 1978. The Social Security and National Insurance Trust (SSNIT) built 7,000 dwellings between 1988 and 2000 (UN-Habitat, 2011). Still, they withdrew from public housing due to low rents, making it difficult to recover investment costs. The two prominent public housing institutions, SHC and TDC, were restructured to focus on housing production. 2.9 Structural Adjustment and housing in Ghana In the 1980s, Ghana came under a severe financial crisis. It signed onto the Structural Adjustment Programmes (SAP) of the World Bank and IMF to access funds to engage in developmental activities, including housing. As part of the conditionalities of the SAP, the country’s trade was liberalised, which opened its market to imported building materials and influenced rent controls (Benjamin, 2008). This, unfortunately, led to high inflation, which in University of Ghana http://ugspace.ug.edu.gh 35 turn increased the cost of building, and rent cost, and weakened the government’s control of the housing market. The high rents impeded the majority of the urban dwellers from getting access to decent housing, consequently leading to the proliferation of slums and squatter settlements in the country’s urban areas. In line with the global economic reform in the 1970s and 1980s and the deliberation about the direct effect of housing on economic development, housing policy in Ghana started to shift away from the direct provision of housing by the government to providing enabling environment for the private sector to lead in housing provision. Many reasons have been provided to justify this shift. First, it was asserted by the Bretton Woods institutions that the government alone could not provide housing for the entire population due to a lack of funds (Konadu-Agyemang, 2000). Second, the government could not maintain the houses because of a lack of funds. With the halt of government subsidies to housing agencies, rent controls also restricted their ability to raise enough rent funds (Asabere, 2007). In addition, it was contended that liberalising the housing sector was a more effective means of providing housing. Furthermore, liberalising was perceived to have broader macroeconomic benefits, such as increasing employment, innovation, and the growth of the finance sector. Actions initiated to promote the private sector included deregulation of land, housing, and building materials market; the establishment of the Home Finance Company to provide housing finance; the promotion of rental housing; and tax relief for land transactions (see Arku, 2009a; Tipple & Korboe, 1998). These actions led to a tremendous increase in the number of real estate developers (Tibaijuka, 2009) and, consequently, the Ghana Real Estate Developers Association. University of Ghana http://ugspace.ug.edu.gh 36 According to Arku (2006), Ghana’s housing