Accra: As the Ghanaian government struggles to find a solution to the country’s accommodation problem, Indian-owned Swami International has stepped in with a $12 million, 12.4 acre Paradise Estates township made up of 102 houses in the capital Accra.
This is part of the company’s $50 million investment in real estate across two other West African countries, Gambia and Senegal, its General Manager, Tarun Singh, told IANS.
Swami entered the West African real estate market two years ago, Singh said, in response to an African Development Bank (AfDB) report that the continent “was growing with an urbanisation rate of 3.4 per cent, with cities across the continent experiencing the fastest urban growth rate globally. Unfortunately, it looks like this is not being matched by the ability to provide affordable houses”.
He said the Swami Group entered a market that has real demand and is perhaps providing what governments across the continent are not able to do.
The international real estate group, Knight Frank, in a report on Africa’s real estate sector for 2017, said rapid population growth across Africa — faster than any other global region — together with urbanisation, is driving the property market activity across Sub-Saharan Africa.
Singh said the company had already completed a similar project in Senegal and had moved on to a second one at Diamniodo, a new development at the new airport.
“Our decision to come to West Africa is due to the peace and security we find in the countries that we are operating in,” he added.
Singh, however, said there were some problems that needed to be solved, including skilled workers to be engaged on large-scale housing projects and poor utility services, in order to attract more investors into the real estate sector in the three countries.
In addition to the provision of houses in Gambia, Singh said the company has also provided rural electrification and boreholes for the people. “In addition, we have also ventured into agriculture with the cultivation of potatoes in Senegal and bananas in the Gambia,” he said.
The AfDB has identified a huge deficit in the real estate sector which it said had hit the poor hard because of affordability and this had remained a key challenge to developing the housing finance market.