Accra, Ghana – In a thought-provoking statement, Ghanaian business magnate and Chancellor of the University of Cape Coast, Sir Sam Jonah, has questioned the legitimacy of funding behind the country’s booming luxury real estate sector. Speaking in an interview, Sir Jonah expressed deep concerns over the rapid proliferation of high-end properties in Accra, suggesting that many of these projects are being financed through “dishonest” and illicit means.
According to Sir Jonah, the structure of Ghana’s financial system makes it nearly impossible for legitimate developers to rely on local bank financing for such large-scale projects. He highlighted that commercial banks in Ghana lack the balance sheet strength to provide long-term, low-interest financing needed for property development, citing average commercial lending rates between 25% and 35% as prohibitive.
“The absence of urgency among developers to occupy these properties suggests that the capital deployed is not subject to the scrutiny of Ghana’s banking or regulatory systems,” Sir Jonah said. He pointed out that if developers had taken loans from banks, they would be eager to rent out or sell the properties to service their debts and avoid foreclosure.
This phenomenon, Sir Jonah noted, raises legitimate questions about the integrity of the funding sources behind Ghana’s luxury real estate boom. He emphasized the need for transparency and accountability in the sector, warning that the unchecked inflow of unexplained funds could distort the nation’s economy and its moral fabric.
Sir Jonah’s comments have sparked a timely debate about the sources of wealth in Ghana and the need for greater scrutiny of financial transactions in the real estate sector. As the country continues to experience rapid urbanization and growth, ensuring the integrity of its financial systems will be crucial for sustainable development.