Todayin History Fixed-incomeearnerstopayforhousesincedisunderspecialprogramme- Mahama

Published in House and Home on Monday, August 11th 2025 at 6:48 GMT by Ghanaweb.com
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During his campaign for the 2024 general elections, John Dramani Mahama announced plans to introduce a housing programme targeted at fixed-income earners if elected into office.

Today in History: Fixed Income Earners to Pay for Houses in Cedis Under Special Programme - Mahama

In a significant announcement that resonated with many Ghanaians struggling with housing affordability, former President John Dramani Mahama outlined a pioneering initiative aimed at making homeownership accessible to fixed-income earners. This development, which harks back to a key moment in Ghana's socio-economic history, emphasized the government's commitment to addressing the chronic housing deficit that has plagued the nation for decades. Mahama's proposal, presented as part of a broader strategy to alleviate the burdens faced by low- and middle-income workers, introduced a special housing program where payments for homes would be made exclusively in the local currency, the cedi. This move was designed to shield participants from the volatility of foreign exchange rates, which often exacerbate the cost of living in a country heavily reliant on imports and international financing.

The program, as detailed by Mahama, targeted a wide array of fixed-income earners, including civil servants, teachers, nurses, and other professionals whose salaries are predictable but often insufficient to cover the escalating costs of real estate. By allowing payments in cedis, the initiative sought to eliminate the barriers posed by dollar-denominated loans or mortgages, which have historically deterred many from entering the housing market. Mahama highlighted that this approach would not only make housing more affordable but also stimulate local economic activity by encouraging the use of domestic currency in large-scale transactions. He argued that tying housing payments to the cedi would foster financial stability for families, reduce dependency on foreign currencies, and ultimately contribute to the de-dollarization of the Ghanaian economy—a long-standing goal for policymakers aiming to strengthen national sovereignty over fiscal matters.

Delving deeper into the context, this announcement came at a time when Ghana was grappling with rapid urbanization and a burgeoning population, leading to an acute shortage of decent, affordable housing. Official estimates at the time suggested that the country faced a housing deficit of over two million units, with urban centers like Accra and Kumasi experiencing skyrocketing rental prices and informal settlements proliferating on the outskirts. Fixed-income earners, who form the backbone of Ghana's workforce, were particularly hard-hit, often forced to allocate a disproportionate share of their earnings to rent or substandard accommodations. Mahama's program was positioned as a direct response to these challenges, building on previous government efforts such as the Affordable Housing Project initiated under earlier administrations but often criticized for slow implementation and accessibility issues.

Under the special program, participants would benefit from subsidized interest rates and flexible repayment plans tailored to their income levels. Mahama explained that the government would collaborate with financial institutions and real estate developers to construct purpose-built housing units in strategic locations across the country. These developments would include essential amenities such as reliable water supply, electricity, and proximity to schools and healthcare facilities, ensuring that beneficiaries not only acquire homes but also improve their overall quality of life. The former president stressed the importance of transparency in the allocation process to prevent corruption and ensure that the program truly serves those in need, rather than becoming a tool for political patronage.

Mahama's vision extended beyond mere housing provision; it was intertwined with broader economic policies aimed at job creation and infrastructure development. He noted that the construction phase of the program would generate employment opportunities in the building sector, from architects and engineers to laborers and suppliers, thereby injecting vitality into local economies. Furthermore, by denominating payments in cedis, the initiative would encourage savings in local banks, bolstering the financial sector and reducing the outflow of capital. This was particularly relevant in an era marked by currency fluctuations, where the cedi's depreciation against major currencies like the US dollar had made imported building materials prohibitively expensive, stalling many housing projects.

The announcement also sparked discussions on the feasibility and long-term sustainability of such a program. Supporters praised it as a bold step toward inclusive growth, arguing that empowering fixed-income earners with homeownership would enhance social stability and reduce poverty levels. Critics, however, raised concerns about funding sources, questioning whether the government could sustain subsidies without straining the national budget or increasing public debt. Mahama addressed these worries by pointing to potential partnerships with international organizations and private investors, while emphasizing prudent fiscal management to avoid overburdening taxpayers.

Reflecting on the historical significance, this initiative under Mahama's leadership represented a pivotal shift in Ghana's approach to social welfare. It built upon the legacy of previous leaders who had attempted similar reforms, such as the housing schemes during the Nkrumah era, but adapted them to contemporary economic realities. By focusing on cedi-based payments, the program aimed to insulate participants from global economic shocks, such as oil price hikes or currency crises, which have repeatedly disrupted development efforts in Ghana.

In essence, Mahama's special housing program for fixed-income earners was more than a policy announcement; it was a call to action for equitable development. It underscored the need for innovative solutions to longstanding problems, fostering hope among millions who dream of owning a home without the specter of financial ruin. As Ghana continues to evolve, this historical moment serves as a reminder of the potential for targeted interventions to transform lives, provided they are implemented with diligence and foresight. The program's emphasis on local currency not only promoted economic nationalism but also paved the way for future policies that prioritize the welfare of ordinary citizens in the face of global uncertainties.

Read the Full Ghanaweb.com Article at:
[ https://www.ghanaweb.com/GhanaHomePage/business/Today-in-History-Fixed-income-earners-to-pay-for-houses-in-cedis-under-special-programme-Mahama-1995565 ]

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Todayin History Fixed-incomeearnerstopayforhousesincedisunderspecialprogramme- Mahama

Today in History: Fixed Income Earners to Pay for Houses in Cedis Under Special Programme - Mahama

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