IFC Promotes Home Ownership in Ghana
IFC recently partnered with five of Ghana’s leading banks to launch a program that will create more opportunities for Ghanaians to own homes.
Under the SECO IFC Ghana Primary Mortgage Market Initiative, IFC will provide partial credit guarantees and advisory services to local banks, helping them increase their home loans. It will also work to improve Ghana's regulatory environment for mortgages.
Five of the country's major banks are initial participants: HFC Bank, Ghana Home Loans, Fidelity Bank, Eco Bank, and Merchant Bank. IFC has signed agreements to advise them on developing and implementing standard mortgage products, origination and servicing policies, and industry guidelines. Other banks are expected to join on later.
In August 2007, IFC invested $25 million to support three of the participating financial institutions to boost their mortgage operations in Ghana.
IFC will also work with key stakeholders in Ghana to address legal and regulatory constraints to the growth of mortgage lending and investing. Efforts will include implementing tax incentives to promote home ownership, helping increase securitization of mortgages in the secondary market, and raising the standards that banks use to appraise homes.
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IFC Private Enterprise Partnership for Africa