‘Stabilize Mortgage Market’

Kwaw Blay

Kwaw Blay, an investment analyst at TLG Capital, a UK based Investment Fund, has called on government to provide a stable and affordable mortgage structure to address the current housing deficit in the country.

Speaking at the maiden edition of ‘Invest in Ghana’ at Mövenpick Ambassador Hotel in Accra on Wednesday, Mr Blay said the current mortgage market meets the needs of a few who could be classified as high earners.

“In terms of the housing market, the solution is for government to step in. Historically if you look at the United States for example, the Federal Government created and sponsored several programmes to foster mortgage lending including Freddie Mac and Fannie Mae. It was only when the government stepped in to address the problem that the industry was adequately established,” he noted.

Invest in Ghana, which is a turnkey event focusing on Ghana’s investment potential and its development, was organized by Homestrings Limited, a UK investment platform that facilitates Diaspora and impact-investing to make a difference in the world.

Although various governments have tried and have so far failed to adequately tackle the housing deficit in Ghana, the current government holds the key to solving the problem, Mr Blay disclosed.

“The mortgage system doesn’t seem to apply to the majority of Ghanaians. A mortgage system is supposed to be one that underpins a country’s economic system, but ours doesn’t seem to apply to the majority of Ghanaians and that has to change.

“The government has to work with the private sector to provide for an affordable mortgage structure that compliments the salaries that ordinary Ghanaians earn. The mortgage system is ineffective if it doesn’t serve the very people that require it the most. The private industry alone doesn’t have the resource, the land or ability to be able to cater to that,” he noted.

Real Estate Industry

He added that the real estate industry in Ghana is viable and needs more investors.

“I think investing in real estate is still a very worthwhile venture in Ghana. It is not complex or difficult to research into. You don’t have to be a sophisticated investor to put money into real estate; anyone with enough capital can do it as long as you do your homework carefully. Unlike stocks, bonds and so forth, it is a highly tangible asset. It is the only venture that you can actually go and touch, feel and own, and as long as it is legally obtained it would always be yours.”