VZCZCXYZ0000
RR RUEHWEB

DE RUEHAR #3001 3521342
ZNR UUUUU ZZH
R 181342Z DEC 06
FM AMEMBASSY ACCRA
TO SECSTATE WASHDC 3225

UNCLAS ACCRA 003001 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: EFIN ECON GH
SUBJECT: Visit of HUD Secretary Jackson 
 
 
¶1. Summary: Alphonso Jackson, U.S. Secretary for Housing and Urban 
Development (HUD), exchanged views on addressing Ghana's housing 
needs with President Kufuor and a range of government and private 
sector representatives while visiting Accra November 26-29.  The 
Secretary highlighted the lack of secure title to land in Ghana as a 
 
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major impediment to attracting investment in the housing sector and 
suggested Ghana explore ideas used in the United States such as the 
Low Income Housing Tax Credit to provide incentives to invest in low 
cost housing.  Secretary Jackson invited the Minister for Water 
Works and Housing and other GoG officials to come to the United 
States to meet U.S. government and private sector representatives 
involved in the housing sector.  See action request in paragraph 6. 
End Summary 
 
¶2. Secretary Jackson visited Accra in response to President Kufuor's 
invitation to come to Ghana to share his views and expertise.  While 
in Ghana, Secretary Jackson met with: President Kufuor; Minister of 
Water, Works and Housing, Hackman Owusu-Agyeman; Minister of Finance 
Kwado Baah-Wiredu; Central Bank Governor Paul Acquah; 
representatives from the real estate and banking sectors; and the 
local Habitat for Humanity chapter.  He delivered a keynote address 
at a Regional conference on financing for affordable housing 
co-sponsored by HUD and UN Habitat, participated in the signing 
ceremony of a $30 million loan guarantee agreement between OPIC and 
Ghana Home Loans, one of the very few banks in Ghana that provide 
mortgage loans, and made a site visit to a slum area near Tema, 
Ashiaman Tulaku, that is a part of a GoG-UN Habitat pilot project 
supporting slum upgrading.  The Secretary was accompanied by his 
wife, Marcia Jackson and HUD staff members.  Mrs.  Jackson, a former 
teacher, visited a local school to interact with the children and 
the parent's association and to make a donation of books and paper 
provided by the U.S. embassy, as well as educational posters 
provided by HUD. 
 
¶3.  Secretary Jackson delivered a consistent message to all his 
interlocutors.  He emphasized that Ghana needed to ensure that 
investors and developers could secure clear title to land (note: 
currently it is extremely difficult to establish clear title to land 
in Ghana due to overlapping claims, traditional practices regarding 
control of land, and poor mapping and address systems. End note). 
Absent clear title, banks will be reluctant to lend.  Secretary 
Jackson indicated there were many US-based developers who would be 
interested in joint-ventures in Ghana but the land title issue 
remains a major stumbling block.  The Secretary also suggested the 
GoG might consider models such as the Low Income Housing Tax Credit, 
which provides tax breaks to developers in the U.S. who construct 
rental housing for low income people as a means to construction of 
affordable housing. 
 
¶4.  GoG officials and private sector representatives acknowledged 
the importance of secure land tenure.  Both the MCA Compact and a 
World Bank project will address some elements of land tenure but 
Ghana has a very long way to go before land (or houses) can be used 
as collateral to leverage financing.  President Kufuor and others 
noted that the government is, as an interim step, trying to assist 
through "land banks" for use by developers.  Currently, the GoG has 
50,000 acres of land, with clear title, available for residential 
development.  However, GoG recognizes it needs the private sector to 
drive the process if it is to provide the estimated 500,000 housing 
units needed.  Private sector real estate developers who met with 
Secretary Jackson suggested that bankers should be willing to lend 
 
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in situations where a long term land-lease has been granted.  Fifty 
to ninety year leases are easier to obtain than clear title in areas 
where land is held by traditional leaders.  Secretary Jackson said 
that while that was logical in some respects, U.S. banks would not 
be willing to finance developers without clear title. 
 
¶5.  Secretary Jackson extended an invitation to the Ministers with 
whom he met to come with staff to the United States to learn more 
about various programs and approaches that have been put in place to 
promote creation of affordable housing and to meet with developers 
who might be interested in investing in Ghana's housing market.  The 
GoG officials welcomed the invitation. 
 
¶6.  Comment and action request:  The Secretary's visit was well 
received by GoG officials and the private sector, and his focus on 
land tenure issues in Ghana was on target.  The Ministry of Finance 
has followed up with a request for more information about the Low 
Income Housing Tax Credit as an incentive to build affordable 
housing.  Post would appreciate HUD assistance in providing that 
information.  The press coverage of the visit was positive.  End 
comment and action request. 
 
BROWN