12th October 2012, Accra: Today, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), signed an agreement to provide a US$10 million senior loan to Ghana Home Loans (GHL), Ghana’s leading mortgage financing company. DEG’s senior loan will contribute to the growth of GHL’s origination capacity and thereby increase access to mortgage financing by individuals and households in Ghana. Andreas Voss, DEG’s Regional Director, said “A key goal in Ghana’s policy-making is to encourage the growth of the formal private sector to mobilize capital for development and increase of housing stock.
The lack of adequate mortgage financing has created gaps in the housing sector in Ghana. GHL estimates that the potential mortgage demand based on households without homes, but can afford to acquire one, is close to $2 billion. DEG’s financing will contribute to meeting this demand gap. Ghana Home Loans has exhibited a tremendous track record as an institution committed to the housing sector in Ghana, not only through the provision of financing opportunities, but also educating consumers on mortgages through its weekly mortgage clinics, and holding periodic sessions to bring Real Estate developers and potential Homeowners together.”
Dominic Adu, CEO of Ghana Home Loans, said “we are exceedingly pleased to have DEG support our operations and our vision of making home ownership easier and a reality for low to middle income earners. This $10m facility should lead to over 300 households and potentially 1,500 people being proud owners of their homes. We look forward to a mutually rewarding relationship in solving the housing problems that beset the many decent and hardworking people of Ghana”.
About Ghana Home Loans : Ghana Home Loans is the market leader in mortgages and the only specialist home finance company in Ghana. Established in 2006 by three Ghanaian promoters and a team of world class financial institutions, the company has already provided financing to over 1,500 households totaling $90m for the acquisition, construction and improvement of homes across Ghana. In recognition of this, it was awarded the 5th place in Ghana Investment Promotion Center (GIPC) Club 100 of prestigious and leading companies in Ghana.
About DEG : DEG, a subsidiary of KfW, is one of the largest European development finance institutions for long-term project financing. For 50 years, DEG has been financing and structuring the investments of private companies in developing and transition countries. DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy, from agriculture to infrastructure and manufacturing to services with special emphasis on exported oriented and employment generating projects which are environment friendly.
DEG also focuses on investments in the financial sector in order to facilitate reliable access to capital. To date, DEG has worked together with more than 1,700 companies with financing commitments of more than EUR 13 billion and has a staff of 457 spread over 13 regional offices and supported by around 70 KfW offices worldwide.