Ghana’s real estate industry combats cedi depreciation by adopting local materials, innovative technologies, and reduced imports, while urging government efforts to stabilize the exchange rate
Many sectors are reeling under the impact of the ever-depreciating local currency, and the real estate industry is not an exception. However, it appears that industry is finding innovative means to beat down the impact of Ghana’s unstable exchange rate.
The industry players in Ghana’s real estate sector bemoan how the depreciation of cedi has led to the soaring prices of building materials since the majority of these building inputs are imported. Eventually, the situation has made it very difficult for average and low-income earners in the country to own a decent home due to affordability issues and hence contributing to Ghana’s rising housing deficit.
In the face of this situation, the real estate industry is now charting an innovative path to shield itself from the economic impact of the cedi depreciation.
President of the Ghana Real Estate Developers Association (GREDA), Patrick Ebo Bonful sighted by The Ghana Times says among a number of innovations, the industry is increasingly resorting to local resources and materials to minimize the overdependence on imported building materials.
In addition, Patrick Ebo Bonful further indicated that they are now inventing and replicating certain technologies that have the potential to drastically reduce their reliance on imports.
Despite the attempt and call on industry players to find alternatives to beat down the impact of the unstable exchange rate, the President of GREDA is calling on the government to prioritize measures to stabilize the cedi.
“As an industry, we can’t call for anything other than a stable exchange rate regime,” he said.
He continued, “It is our hope and prayer that, maybe to counter that in our own way, we begin to use more of locally produced materials and using certain technologies that we can replicate here. It will all help us to reduce our reliance on imports. The less we import the less pressure we put on the dollar.”
In recent years, some developers have transitioned to locally made alternatives such as clay bricks and bamboo as reinforcement instead of iron rods. These efforts align with broader national goals of reducing import dependency and fostering economic resilience.
It is the hope of many Ghanaians that the new trend will widely be adopted by the industry to help reduce the cost of housing for the average Ghanaian and low-income earners.
