The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has revealed that it has provided $60 million in financing to Ghana Home Loans Bank (GHL) to support mortgage lending to low and middle-income borrowers, helping the country address a demand for affordable housing that exceeds supply. In August 2017, Rendeavour announced that they intended on building affordable homes as part of a partnership with GHL, the Ghanaian mortgage provider that is backed by the Abraaj Group, International Finance Corporation and OPIC.
The pilot project of 100 affordable homes with plans to expand to over 2,000 homes is located at Appolonia City, the Rendeavour satellite city development in Greater Accra which spans over 2,325-acre (941-hectares) and is located c. 20km from the centre of Accra. It includes a variety of social infrastructure underpinned by quality construction and estate management services. Rendeavour, who own more than 30,000 acres (12,000 ha) of land in the urban growth trajectories of major cities in Kenya, Ghana, Nigeria, Zambia, and the Democratic Republic of Congo, work in partnership with world-class experts, local developers, governments and local communities to create large-scale, mixed-use, mixed-income, satellite cities.
A visit by OPIC officials in January 2018 was held to officially kick-off the project. Speaking at the event OPIC’s Executive Vice President David Bohigian said:
“Housing for low- and middle-income families is crucial for economic growth in Ghana where the need is critical, OPIC is pleased to work again with GHL Bank on a project with many developmental benefits for Ghana.”
Bohigian’s visit to Appolonia City follows that of President Nana Akufo-Addo in November 2017, when the Ghanaian leader spoke on the affordable housing project.
It is indeed not the first time OPIC will be investing in capital projects in Ghana. OPIC has also funded SME’s, supported the healthcare sector, built academic facilities and dormitories for the University of Ghana and committed up to $250 million in financing to build a 200-megawatt power plant.