The evolution of Chinese automobiles in Ghana

  • Written by Super User
  • Category: News

Written by: Rahaman Osman

Photo Credit: MotorKingLtd

The relationship between Ghana and China dates back to 1960 when the first President, Dr Kwame Nkrumah, had to lobby for the People’s Republic of China’s reinstatement in the United Nations (UN). Both countries have had growing diplomatic and economic relations ever since. For much of the last century, Ghana relied heavily on commodities for foreign exchange, but it was until from the year 2000 that China’s interest in Ghana in terms of investments and trade grew stronger.

Most past and present governments of Ghana have one way or the other had some economic or diplomatic support from China. Inferences of events from the Rawlings administration to the Nana Addo administration show that both Ghana and China’s relationship will forever remain strong and there is the need for more collaboration of economic ties for mutual benefits.

The growth of China’s trade interest in Ghana for the past decades has improved so significantly in goods and services which include textiles, commodities and automobiles. Huawei, one of the giant mobile service providers of China is doing very well in Ghana and many more Chinese vehicle and motorcycles are all over Ghana helping in diverse ways for the growth of the economy. 

The automobile market

Ghana Automobile Industry is well-known with Europeans and Japanese brands such as Nissan, Toyota, Mitsubishi, Mercedes-Benz, Isuzu, Ford and Volvo. With some South Korean brands such as Kia, Hyndai, Ssangyong. These brands have dominated the Ghanaian market over decades as a result of brand power and high images in the eyes of the Ghanaian Automobile consumers.

In time past, the Chinese brands were perceived as substandard and low-quality vehicles due to some technical challenges automobile consumers experienced whiles using them. However, globalization and technological innovations have now made these Chinese manufacturers to improve on their product designs, quality and specifications to compete so closely with some of these European, Japanese and South Korean Brands in the Automobile Industry.

 

Foton, one of the leading Chinese brands in the world, for example, has adopted a strategic alliance with renewed automobile giants in the world such as Cummins from America, Diamiler from Mercedes – Benz, Germany and Isuzu from Japan where they pick Engines, Transmissions, Gearboxes and Axels from these renowned automobile companies to manufacture their vehicles. It is of no doubt, Foton is now one of the leading brands in sales volume of Heavy Duty Trucks in the world and tipped as the number two brand in the Light Duty Commercial Trucks segment in Ghana(source: GADA).

Historically, The Kalmoni Group has been very instrumental and consistent in promoting and marketing Chinese Automobiles in the Ghanaian market over decades now. The first Chinese vehicle introduced into the Ghanaian market was the Great Wall, which dates back to the late 90s and early 2000s by the Kalmoni Group under its sister company called Enyidado Industries later changed to Modern Auto Services Limited.

After testing this Brand for a period of time, the Ghanaian automobile consumers did not accept the brand due to some technical and design challenges. This they had to let go of and explored other Chinese Brands such as Geely, Cherry QQ, Changan, Lifan. These Brands were introduced and tested the Ghanaian market but eventually could not also stand the test of time in the eyes of Ghanaian automobile consumers. Foton one of the flagship brand of Chinese vehicles, including others now doing very well in complementing to the Ghanaian Economy.

Many SME’s in Ghana today such as:  Mobile Water producers, Beverages distributors, wholesalers and multinational companies now rely greatly on these Chines Light Duty Trucks for their distributions and retails operations. This is mainly due to their Quality, Reliability, Affordability, and good after-sales support by their local distributors.

The Construction and Real Estate developers can now boast of a more reliable Foton Auman Heavy Duty Tipper Truck with bucket sizes of 18, 20, 32 & 45 cubics and equally the Oil & Gas Sector can also boast of high quality

Foton Auman Tractor Heads as the only Chinese Truck in Ghana today with the ADR specification which is a mandatory requirements by the European standard for transporting Oil & Gas. New Chinese vehicles importation to Ghana has significantly grown as per data below.

Also SeeDo you know that the richest man to ever live was an African?

Over the last three years, about 40,181 units of new vehicles have been imported into Ghana with the Chinese vehicles contributing about 9.9% of these total imports. Even though, in the year 2017 there was a 7% declined in the total imports of new vehicles into Ghana as against the previous year, but the Chinese vehicles witnessed about 8% growth over the preceding year which is quite significant and shows a promising future for the growth of Chinese automobiles in Ghana.

There should be a deliberate effort between governments and authorized Automobile distributors in Ghana to partner with the Chinese companies for a possible establishment of some vehicle assembling plants in Ghana. Even though, the current government has entered into some negotiations with SINOTRUCKfor possible of establishing an assembling plant for which over 1,500 trucks are to be assembled annually for the West Africa market, more of such needs to be work on.

The fact of the matter is that, these Chinese vehicles have come to stay in Ghana Automobile Industry and us as a nation must start to develop and strengthen our technical institutions so that we can train more youth to feed into this sector. Else we will eventually be purchasing and use these Chinese vehicles and have to resort to these foreigners to provide service for them.

Chinese Brands such as Foton, Howo Sinotruck, Shackman, Jac, Jmc, Yujein, Dongfing etc. are now all over Ghana Automobile Industry and credit must be alluded to the pioneers for paving the way.

Source: Business & Financial Times (B&FT)

 

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Foreign Direct Investment and Economic Growth in Africa

  • Written by Super User
  • Category: News

Written By: Alexander Ayertey & Emmanuel Amoah-Darkwa

The economy of Africa has witnessed an increment in foreign direct investment (FDI) to the continent despite the global economy experiencing a decline in foreign direct investment – according to the World Investment Report 2019, FDI flows in Africa rose to $46 billion in 2018 representing an increase of 11% over 2017.

This perceptible growth in FDI has been attributed to the growing demand for some commodities and a corresponding rise in the prices of these commodities together with a growth in non-resource-seeking investment in a few countries on the continent. FDI flows in Africa in 2017 decreased by 21% as compared to 2016, reaching $42 billion – the decline was concentrated in the larger commodity exporters.

Even though some large economies on the African continent like Egypt and Nigeria experienced contractions in Foreign Direct Investment, this decline was outbalanced by the surge in FDI flows in other large economies like South Africa that recorded FDI of $5.3 billion – South Africa’s more than double FDI in 2018 is largely attributed to the intracompany transfers by established investors even though new investments in the shape of the $186 million wind farm being built by the Irish company, Mainstream Renewable Energy and the $750 million Beijing Automotive Group plant were noteworthy FDI inflows.

Foreign Direct Investment in Africa has undeniable prospects as the African Continental Free Trade Area (AFCFTA), a free trade area that is inscribed in its blueprint, the African Continental Free Trade Agreement – with the highest number of participating states (52 out of 55 AU member states), the free trade area will lighten the trade barriers associated with intra-African trade – African Continental Free Trade Area is considered the largest in the World after the formation of the World Trade Organization.

As the implementation of the AFCTA, which went into force in May 2019 commences its operation after a summit on July 7, 2019, the United Nations Economic Commission for Africa estimates that the AFCTA will enhance intra-African trade by 52% within 4 years.

In 2018, the global flows of foreign direct investment recorded was $1.3 trillion, a decline of 13%, making it the lowest to be recorded after the global financial crisis – highlighting a decline in international investment in the last decade. Glaring strides have been achieved during this period – notable among the accomplishments have been developing Asia regaining its position in 2017 as the largest receiver of foreign direct investment in the world with   $476 billion. Foreign direct investment to developing economies was stunted at $671 billion in 2017 after a 10% decline in 2016 but FDI to structurally weak and vulnerable economies have been fragile as flows to least developed economies was $26 billion representing a decrease of 17% in 2017.

Flows to landlocked developing economies were also $23 billion an increase of 3% whiles flows in small Island developing states experienced a growth of 4% representing $4.1 billion in 2017. Other regions like Latin America and the Caribbean experienced an increment in FDI for the first time in 6 years accounting for $151 billion representing an increase of 8% but the inflows are still less than what was recorded at the time when the commodity market was booming in 2011 which was the peak for the region.

See Also: Real Estate Finance: Lessons that Ghana can draw from the rest of the world

According to the African Development Bank, the Gross Domestic Product (GDP) of the economy of Africa is forecasted to accelerate to 4% in 2019 after GDP growth in the continent was estimated at 3.5% in 2018 – making the economy of Africa the second-fastest growing economy after Asia with the combined GDP of Nigeria and South Africa making up almost half of the economy of Africa. In 2018, Nigeria’s foreign direct investment flows were for $1.9 billion – Although Nigeria’s gross domestic product grew by 1.9% in 2018, foreign direct investment declined as compared to the $3.5 billion in 2017 according to UNCTAD. The decline is mainly attributed to a profit repatriated rift between the government of Nigeria and the Telecom giant, MTN – the situation created fertile grounds for HSBC Bank and UBS, an investment bank to close their offices in 2018. This development did not auger well for Nigeria whose main foreign direct investment over the years have come from the United Kingdom, United States, China, France and the Netherlands. Although Nigeria has reported notable greenfield projects in the oil and gas sector that has the capacity to overturn the decline in FDI in 2019, the situation has made the country unattractive for foreign investors as they switched their attention to Ghana, which was experiencing an oil and gas boom at the time.

According to the World Bank, the economy of Ghana accelerated by 8% in 2017 with the growth being attributed to the high output of Gold from the mining sector and gains from the oil sector – this made Ghana the second-fastest economy in Africa after Ethiopia with its largest Greenfield project being spearheaded by the Eni Group. In 2018, Ghana became the most attractive destination for foreign direct investment in West-Africa raking in about $3.5billion as published by Ghana Investment Promotion Centre (GIPC). Total foreign direct investment in Sub-Saharan Africa in 2018 was $32 billion representing an increase of 13% for the region.

In northern Africa, Egypt’s gross domestic product grew by 5.3% – with investment in renewable energy, food processing, real estate development, oil and gas, Egypt was the economy of Africa’s highest earner of foreign direct investment, accruing $7.9 billion in 2018 representing an increment of 7% in the previous year.

 

In eastern Africa, Ethiopia was the highest earner of FDI in 2018 with $3.3 billion even though the country suffered a decline of 18% as compared to 2017. Uganda recorded a tremendous increase of 67% in FDI, summing-up to $1.3 billion, the highest ever recorded in the country – the oil and gas sector accounted for the recent surge as Tullow Oil, Total among others are the major participants engaged in the sector. Other eastern African countries like Tanzania and Kenya have all witnessed an increase in foreign direct investment in 2018.

For African countries to increase the size of foreign direct investment in their economies it is imperative to integrate all the African countries as a single market devoid of trade tariffs and the hustle associated with moving from one African country to the other.

In Aliko Dangote’s interview with Mo Ibrahim in April this year, the richest man in Africa pointed out the delays his outfit endures in transporting goods to other African countries. He even recounted times he had to apply for VISA to enter an African country even when he had an African Union passport. The effective implementation of the African Continental Free Trade Area (AFCTA) could integrate a market with a population of about 1.2 billion on the African continent with a combined gross domestic product of more than $2.2 trillion.

The realization of the goals of the African Continental Free Trade Area has the capacity to boost the economic growth of Africa countries. Many examples of such trade arrangements have been implemented successfully in other regions in the last few decades – in the early stage of the Association of Southeast Asian Nations (ASEAN) a free trading area that was that had its framework arraignment signed by 11 heads of state in 2002 saw trade between ASEAN members growing from $59.6 billion to $192.5 billion between 2003 to 2008.

The growth in trade within the region was mainly influenced by the removal of 90% trade tariffs among member states. With the economy of China becoming the second largest economy in the world after the United States, the region has recorded an increase in foreign investments particularly among the network of Chinese business entities (Bamboo Network) operating in the markets of Southeast Asia. The Euro area, the North America Free Trade Agreement (NAFTA) are all viable trade arrangements that have been implemented with member countries reaping the benefits of trade in these regions – the African continent, the second most populous continent in the world according to the World Population Review 2019, can draw lessons from the existing trade arrangements in other regions by effectively integrating all the African countries using the African Continental Free Trade Area (AFCTA). - Business and Financial Times (B&TF)


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Why A British Hotelier And Ghanaian Entrepreneur Are Building Petronia City

  • Written by Super User
  • Category: News

Image result for nana kwame bediako with cola azad

Nana Kwame Bediako (left) with Azad Cola     Picture Credit: Global Trade Magazine

British multi-millionaire property developer Azad Cola who owns the famous Westbury Hotel and Ghanaian serial entrepreneur Nana Bediako recently established Capital Nine Zero (CNZ), an investment company that is developing Petronia City - a 2000-acre city development project that aims to provide the first fully integrated business hub for West Africa’s Oil, Gas and Mining industries. The project, which is hosted by Beahun and Yaabew communities in the Ahanta West District of the western region of Ghana, sits approximately 8 kilometres from Takoradi.

Petronia City was created primarily to address the infrastructure gap in the Western Region following the 2007 oil discovery and subsequent increase in social and economic activity in the region. Petronia City aims to cater to the needs of the oil and gas, mining, financial and government sectors and will provide a hub from which companies can expand into the sub-region and beyond.

I recently had the opportunity to meet with Nana Bediako and Azad Cola to speak about the geo-commercial precedent set with the launch of the Industrial Park and Free Trade Zone known as Petronia City in Ghana.

 

What were the Capital Nine Zero (CNZ) motivations behind founding Petronia City and building this unprecedented investment hub in Africa?

Nana Bediako: This was a labor of love, a project nine years in the making, one accomplished with the consent of over sixty-five families, twelve chiefs and three sub-division chiefs. These are men and women I invested time and energies in meeting with on a regular basis to ensure they were aware of and involved in the three-staged process to turn acres upon acres of African land in to an industrial free trade zone and investment community, a Silicon Valley-esque energy city and a digital hub, with residential and commercial applications that we are only now in the process of fully exploring.

This near-decade needed not just vision but local knowledge; the ability to assuage concerns as to truly owning the land, but doing so in a way that was empowering rather than more of the same, that is, one-dimensional disillusionment.

We came together from two continents, respectively serving in our capacities as an economist and a visionary. We did so because we believe that we are working within one of the richest regions on the continent of Africa, strategically located to be a cross-border, intra-trade thruway for the ECOWAS.

As Steve Jobs once said, "..the people who think they are crazy enough to change the world are the ones who usually do".

Azad Cola: We need to build a platform of sustainable industrial development, producing and manufacturing to an international standard that will bring investment, training and a number of additional socio-economic benefits to the local and wider communities.

The cost of importing the required materials and bringing the right professional expertise is currently a huge barrier to the regions' public and private sectors ability to fund the required investment into infrastructure and development.

By providing the capability to produce within, to not export for the purposes of refining or further manufacturing, but to turn the supply chain around and have easy access to a huge marketplace, was an opportunity which spoke for itself. However, I needed to understand local dynamics; I needed a partner with not just the vision, but the know-how.

This platform and free zone enclave is going to expedite the supply chain in a sustainable environment to meet growing market demand, ECOWAS and Pan-African. We can bring true autonomy to this part of the continent, one development at a time.

What have been the greatest challenges in securing the Free Trade Zone and launching it for investment?

AC: Without a doubt, it was in securing the land. I witnessed Nana in his own professional and personal sacrifice, taking hundreds of trips in and around Ghana to ensure all landholders and stakeholders were involved in this developmental process. I recognized that securing the land was in short, nothing less than to be a Herculean effort.

NB: A challenge is no doubt that Africa remains disillusioned as it pertains to foreign interventions. This has not been a misconception. One "comes in, extracts, then goes," so to speak. I'm here, my partner, Azad is here, not just for our own legacies, but that of the continent. And we are here to stay.

Therefore, we've created our own city, our own bastion of opportunity and not just for the international community, of whom we welcome involvement, but as a proponent of job creation in and beyond country borders for the communities in which we proudly operate.

Who are the primary stakeholders involved with this project and how are you specifically ensuring local communities will benefit?

NB: We are not limiting industrial development and diversification opportunities; each phase of Petronia's development caters to a different type of stakeholder, each with their own demand and own home base. We will diversify and offer opportunity for lasting, sustainable and mutually-beneficial development for as long as essentially needed.

It's important to note that we commend our partners in political governance who have supported us along the way, as they so too see the opportunities presented by projects that are transparent, proudly African, yet rooted in leveraging complimentary strengths to accomplish what was once deemed impossible.

AC: Although the local communities will clearly be the primary stakeholders and beneficiaries due to the positive impact this investment generates for the local economy, the government and the entire country will all have a clear and direct interest. The economic benefits are undeniable. This platform will create an environment where the entire value-added chain can be kept in the country, reducing imports, increasing exports, creating a highly skilled workforce by training and empowering Ghanaians with better paid jobs and transferable skills.

We are creating a blueprint for emerging market prosperity.

Is Africa truly the last frontier of the industrial revolution?

AC: This is a fact. There are very few countries and very few examples in Sub Saharan Africa where producers, manufacturers and distributors neighbor. There has been a longstanding cycle of dependency which this industrial platform will break by creating a replicable template for sustainable development.

NB: If there is any chance for the world to come together to create lasting change, it is here in Africa. We are not asking for charity. We are not suggesting this is a work in progress. We are letting the world know that change is on the way; it's 'manifest destiny', so to speak, as has been inevitable and as proponents of that change, we welcome informing your readers, keeping them abreast of our breaking a longstanding oligarchy of dependency on the continent of Africa that will provide resource and opportunity for generations to come around the world.

Source: Forbes

 

Related: 

 Real Estate Finance: Lessons that Ghana can draw from the rest of the world

 

The Top 5 Advantages of Owning a Farmland #Agribusiness

  • Written by Super User
  • Category: News

For centuries, the land has been considered as the reservoir for wealth. Investment in property is a clever investment as the value of land always appreciates with time. Growing interest for investment in farmlands is the latest trend of the real estate market. In this article, we have mentioned five practical reasons or advantages of owning farmlands.

 

#1 High capital security with less amount of risk

As an investor, you need to keep in mind the performance level of an investment, for both good and bad times. If the land can give you great results in good times, it can also show losses during market instability. As an investor, putting your money in farmland is the smartest choice. Unlike other type or real estate properties where rates fluctuate with the building of new housing units, farms offer limited supply. Therefore, it is unlikely to devalue. Owning a farm provides substantial capital preservation for extended time periods. Additionally, if you can maintain your farmland well, it will give you an entirely inexhaustible resource to gain productive results.

 

#2 Productive inflation boundaries

Farmlands always earn profit higher than the current inflation standard, which makes it a reservoir for invested capital and productive during inflation. In simple terms, farmlands increase money flow constantly. Therefore, investors need not worry about inflation in government policies.

 

#3 Reduce the income shortfalls

As an investor, if you include farmland in your mixed-asset portfolio, it can help you decrease the impact of losses that might occur through other investment portfolios. Strategically placed farmlands can never bring losses. The land is and will be black gold, always!

 

#4 Higher return

Farmland investments bring higher returns as it involves both fixed and movable capital returns. This is possible through the combination of fixed land value appreciation and income through rentals. Farmlands also prove to be a highly valuable asset when compared to other primary assets like bonds, stocks, and commercial property. With considerably lower risk, an investment in farmlands is considered as marginally volatile.  

 

#5 Transparent and simple real estate investment

In scenarios like frauds, unclear investment proceedings, bankruptcy, and bribe, investing in farmlands can provide you with transparency in investment and save you from extortionate charges.

 

3 Reasons To Preserve A Farmland As Your Valuable Asset

#1 Farmlands are the best among asset class with proven competitive records.

#2 If you plan on leasing your farmland, you could earn more profit. Many farm owners who could not generate consistent profit through their farmland gained a lot by leasing out their farms.

#3 Farmlands can also offer guaranteed long term returns if there is any upcoming government infrastructure near your area. 

Source: Vermont

 

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Real Estate Finance: Lessons that Ghana can draw from the rest of the world

  • Written by Super User
  • Category: News

Written By: Alexander Ayertey & Emmanuel Amoah-Darkwa

A report by the department of economic and social affairs of the United Nations in 2018 shows that 55% of the world’s population is domiciled in urban areas; a proportion that is expected to gain an additional 13% by 2050.

Recent projections have shown that the perennial exodus of rural population into urban areas together with an overall increase in the world population has the tendency to add 1.2 billion people to the urban population by 2050. A whopping 90% of this tremendous change is prognosticated to occur in Asia and Africa. The world’s urban population growth in the last 68 years has been prodigious; in 1950 the urban population of the world was 751 million. This number has inordinately risen to 4.2 billion in 2018.

As at 2016, the total population of Africa was estimated to be 1.225 billion, representing 17% of the total world population. The projections made by the United Nations suggest that the total population of Africa may be 2.5 billion in 2050.  All these forecasts give a vivid description of the growing urban population in Africa but the mortgage market in Africa becomes relatively small when international comparisons are made with developed economies.

This imbalance can mainly be attributed to the high poverty levels on the African continent. A typical example can be seen in Sub-Sahara Africa; with about 48.5% of the total population living on less than USD$ 1.25 a day. Sub-Saharan Africa is considered the poorest region in the world. High unemployment rates, persistent low-income levels and poor access to financial services have been some of the reasons for this unpleasant economic condition in this region.

Related: Real Estate Advice: Think You Can Be a Landlord?

The mortgage market in Sub-Saharan Africa is a nascent one; South Africa, Namibia and Cape Verde are the only countries with a mortgage market that represented more than 17% of their GDP. Deposits from customers have been the major source of funding for the mortgage portfolios of financial institutions in this region.

This routine clearly shows that financial institutions in this region are deprived of long term funding that is the most ideal form of funding for mortgage markets. This challenge is coupled with legal constraints that are associated with securing a clean title to an estate and a cumbersome eviction process in times of default.

In most countries in Sub-Sahara Africa, the lack of healthy competition in the banking sector, combined with high transaction cost, credit exposures and crowding out effect perpetuated by unscrupulous borrowing of successive governments have collectively contributed in restraining the growth of the mortgage markets in the region.

In the developed economies, real estate developments have been a fulcrum for economic growth. In 2018, construction on real estate developments contributed USD$ 1.15 trillion to the economic growth of the United States. This represents 6.2% of the GDP of the United States. Real estate construction is labour intensive; this partly explains why the drop in the real estate construction contributed hugely to the unemployment rate during the recession.

The 2008 financial crisis was triggered by the consistent falling of prices of houses. Close to half of the loans that were issued between 2005 and 2007 were subprime. The banks at the time used these mortgages to support large amount of funds in derivatives. The banks folded the subprime mortgages into mortgage-backed securities which were sold as safe investments to pension funds among other parties.

With the America International Group Inc. as the main issuer, the credit default swaps were considered to be insured.  When the borrowers defaulted, this set the slippery slope to the recession in motion as the questionable value of the mortgage-backed securities began to prevail. The American International Group became illiquid.

This meant that investment banks like Lehman Brothers and Bear Stearns which had a lot of mortgage-backed securities on their books became unattractive to other banks as they were shunned entirely.

The fall of Lehman Brothers; the fourth largest investment bank in the United States before bankruptcy was declared began the 2008 financial crisis.

In Sub-Saharan Africa, almost all the financial institutions that ply their trade in housing operate with the collateralized loan products which are costly and only suitable for short term real estate projects. Nonetheless, the mortgage market in Sub Sahara Africa is full of potential that will be of interest to investors.

In June 2013, the Nigeria Mortgage Refinance Company Plc was incorporated as a limited liability company registered with the Securities and Exchange Commission with the core mandate of refinancing mortgages. Stupendous arrangements like this one and the laudable mortgage market reforms that have been made by South Africa and Tanzania in recent times is a step in the right direction.

According to the World Bank, Ghana had a total population of 28.83 million in 2017; out of this population, 54.68% represented the urban population. This shows the urgent need of housing for a growing urban population in Ghana as more than half of the total population resides in urban areas but the history of mortgage financing has been checkered with many unsustained methods of housing financing.

In a study that was published by the department of research of the Bank of Ghana in 2007, it highlighted that many financial institutions have offered mortgage facilities to the working class. Notable among them is the Social Security and National Insurance Trust (SSNIT), State Insurance Company (SIC), Social Security Bank (Now Societe Generale Ghana Limited) the defunct Bank for Housing and Construction (BHC), Home Finance Company (HFC) and First Ghana Building Society (FGBS).

The mortgage activities of these financial institutions were impeded by the high interest rates in the banking sector. This situation restrained the impact of these financial institutions in the mortgage market thereby making housing facilities only accessible to middle income and higher income groups who could access less costly loans in developed economies.

Related: Real Estate: Why Landlords Should Offer Short Let Rentals

The housing facility was beyond the reach of the majority of the working class in Ghana. The situation has not improved as the disparity between the rich and the poor continues to widen.

To develop the mortgage market in Ghana, a fully-fledged mortgaged industry, which is characterised by two major markets, is required. Thus the primary mortgage market where transactions between financial institutions that originate and service housing finance are carried out and the secondary mortgage market where existing mortgages are traded. These intertwined markets are exposed to the changing monetary developments of both domestic and global economic trends.

A well-functioning mortgage market has the capacity to increase funding for housing at a competitive cost and pricing. But this primary function of the mortgage industry cannot be carried out in isolation from the domestic economy. A vibrant mortgage industry thrives on a stable macroeconomic environment, an efficient regulatory framework that ensures a secure, transparent land title acquisition and foreclosures. These all-important features make it possible for a mortgage industry to attract long-term finance from other economies. - Business and Financial Times (B&TF)

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