Access to long-term capital: The Case of Ghana Home Loans
Financing is one of the most important factors to guarantee sustainable housing production to bridge the affordable housing gap. Mortgage finance is said to be one of the instruments that can provide continuous and reliable finance for housing production and consumption. Nevertheless, access to this type of housing finance is limited in Africa. In Ghana, the growing economy and an expanding middle class in the last few decades have enhanced the opportunities for mortgage lending. But, the short to medium macroeconomic shocks in the last few years have had a monumental impact on the growth of mortgage markets. Thus, the growth of the mortgage market has not been impressive, with the mortgage to GDP ratio at 0.4 percent. This report seeks to gain deeper understanding of the experiences of GHL in raising long-term funding (both from Development Finance Institutions (DFIs) and capital markets) and provide an analysis of how mortgage institutions can raise medium to long-term funding from domestic capital markets to support their operations in Ghana.