Absa Bank Ghana and the State Housing Company Limited (SHC) have signed a Memorandum of Understanding (MoU) to provide mortgage financing to Ghanaians seeking to purchase homes.

The move aims to reduce the country's 1.8 million housing deficit.

The agreement, signed at Absa Bank's head office at Ridge in Accra on August 19, 2026, brings together two institutions with deep roots in Ghana's development to address what both described as a national crisis requiring urgent collective action.

Speaking at the signing ceremony, the Managing Director (MD) of Absa Bank Ghana, Edward Nartey Botchwey, said the partnership was about more than just financial returns.

"For us in Absa, it is not just about making money, but it is also about being able to address the needs of Ghanaians," Mr Botchwey said.

"We've got a housing gap in Ghana, and it is important that as banks we play our role in addressing this."

He stated that the timing was ideal, with interest rates having dipped significantly, making it more feasible for customers to access mortgages to build or buy homes.

Mr Botchwey disclosed that Absa's loan portfolio stood at GH¢12 billion as of the end of June, describing it as a testament to the bank's belief and faith in the Ghanaian economy.

The MD of the SHC, John Bawah, said the partnership was a "marriage made in heaven" given the long legacy both institutions shared.

"The State Housing Company comes from a long legacy and history.

And to be able to partner Absa, formerly Barclays Bank, with its long history of providing financial solutions for Ghanaians, it is only natural that with the 1.8 million and growing housing deficit in the country, the two of us can come together to find a solution to start bridging that gap,” Mr Bawah said.

He disclosed that the SHC, which will turn 70 this year, remains the single highest producer of housing units in Ghana's history, with over 30,000 houses to its credit across the country.

“We command the highest number of developed estates around the country, not just in Accra, but at least every capital city you go to, there is an SHC estate,” Mr Bawah said.

He also highlighted a critical challenge in the housing sector — that the majority of the 1.8 million deficit lies at the bottom end of the pyramid, not the top.

"The reality is that the majority of that deficit lies in the bottom end of the pyramid and not the top, and today I can comfortably say 95 per cent or more of the developers building houses today are catering to that top five per cent and that is where the biggest opportunity lies for anybody looking to make a significant dent in this deficit," Mr Bawah said.

He explained that the SHC operates a bottom-up approach in developing projects, identifying locations and determining who is buying houses in each area and at what prices.

Mr Bawah said the SHC had supplied close to 300 housing units this year, with a target of between 600 and 1,000 units next year, all of which would be incorporated into the partnership with Absa.