Affordable housing

Affordable housing
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Affordable housing
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Real Estate
Business Model Description

Deliver affordable housing for low and middle income households in suburban areas.

Expected Impact

Improved citizen wellbeing and support urban planning though affordable housing.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Ghana suffers a housing deficit of 1.7 million units.
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Clean water and sanitation (SDG 6) Reduced Inequalities (SDG 10)
Sector Sources
  • (I) World Bank database. https://data.worldbank.org/ (II) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. 2020. The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. (III) Republic of Ghana (2017). Medium-Term National Development Policy Framework: An Agenda for Jobs: Creating Prosperity and Equal Opportunity for All (First Step) 2018-2021. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/08/23/Medium-term+Policy+Framework-Final+June+2018.pdf (IV) Centre for Affordable Finance in Africa (2019). Africa Housing Finance Yearbook 2019 - Ghana Country Profile. http://housingfinanceafrica.org/app/uploads/V14-GHANA-PROFILEKF-2.pdf
IOA Sources
  • (1) Chilongo, M. (2015). 'Investment Theme: Access To Housing'. Bertha Centre for Social Innovation and Entrepreneurship, 2015, https://www.sbs.ox.ac.uk/sites/default/files/2019-01/Impact-theme-Acess-to-Housing.pdf (2) Rust, K. (2016). The Residential Investment Opportunity in Driving Economic Growth. Centre for Affordable Housing Finance in Africa.http://housingfinanceafrica.org/documents/the-residential-investment-opportunity-in-driving-economic-growth/ (3) Ghana Investment Promotion Centre. Ghana incentives inventory. https://www.gipcghana.com/press-and-media/downloads/promotional-materials/33-ghana-incentives-inventory/file.html (4) Ghana Investment Promotion Centre (2017). Doing business in Ghana - To Know and Invest in Ghana. (5) Centre for Affordable Finance in Africa (2019). Africa Housing Finance Yearbook 2019 - Ghana Country Profile. http://housingfinanceafrica.org/app/uploads/V14-GHANA-PROFILEKF-2.pdf (6) Godwin, K. (2017). Unmasking the Myth of Affordable Housing in Ghana. Inclusive Business Action Network. https://www.inclusivebusiness.net/ib-voices/unmasking-myth-affordable-housing-ghana (7) Ministry of Water Resources, Works and Housing (2015). National Housing Policy. https://www.worldurbancampaign.org/sites/default/files/national_housing_policy_2015.pdf (8) Richter, S.,Vallianatos, H. and Aniteye, P. (2016). 'Migration, Health, and Gender and Its Effects on Housing Security of Ghanaian Women'. Global Qualitative Nursing Research. https://journals.sagepub.com/doi/pdf/10.1177/2333393617690288 (9) Business World Ghana (2019). Government releases cash to 3 banks for new housing schemes. http://www.businessworldghana.com/govt-releases-cash-to-3-banks-for-new-housing-schemes/ (10) Ghana Statistical Service (2020). Rebased 2013-2019 Annual Gross Domestic Product. https://statsghana.gov.gh/gssmain/storage/img/marqueeupdater/Annual_2013_2019_GDP.pdf (11) Inclusive Business Action Network (2016). Affordable Housing in Ghana - Sector study. https://www.inclusivebusiness.net/sites/default/files/2018-09/iBAN_Affordable-Housing_Ghana.pdf (12) UNDP/PwC Stakeholders Interviews, 2020. (13) KMPG. Ghana - Indirect Tax Guide. https://home.kpmg/xx/en/home/insights/2019/03/ghana-indirect-tax-guide.html#:~:text=5%20percent%20VAT%20flat%20rate,be%20used%20for%20a%20dwelling. (14) Recare. What is Soil Sealing? https://www.recare-hub.eu/soil-threats/sealing (15) Kugbega, S. (2015). Mortgage Finance in Ghana. The Graduated Payment Mortgage as a Panacea to Housing Affordability among Africa’s Middle Class. https://www.grin.com/document/303545 (16) Rossi-Hansberg, E. and Sarte, P.D. (2012). Economics of Housing Externalities. https://www.princeton.edu/~erossi/EHE.pdf (17) Ministry of Works and Housing. Services. https://www.mwh.gov.gh/index.php/services/ (18) Ghana Standards Authority. Engineering Building & Basic Standards. https://www.gsa.gov.gh/engineering-building-basic-standards/