A New Rent Scheme Has Been Introduced To Cushion Ghanaians

A financial support scheme to cushion Ghanaians to meet their rent demands has been launched in Accra.

The intervention, which is referred to as the National Rental Assistance Scheme (NRAS), is anticipated to offer qualified applicants low-interest loans that will enable them to pay their rent in advance.

Yesterday in Accra, Dr. Mahamudu Bawumia, Vice President, announced that the government had set aside GH30 million as seed money for the scheme’s implementation.

The plan would begin by being implemented in the Greater Accra, Ashanti, Western, Eastern, Northern, and Bono East regions.

The Vice President stated that Ghanaians with a known and consistent income could apply for the program. If their application was accepted, the rent would be paid directly to their landlords, who would also need to register with the program.

The scheme will provide eligible Ghanaians with low-interest loans to enable them to pay their rent in advance in partnership with the private sector.

“These loans will be repaid on a monthly basis to match the tenor of the rent and will be supported by a bank guarantee to ensure sustainability,” Dr Bawumia explained.

“The scheme will target individuals in the formal and the informal sectors with identifiable and regular income,” he said.

The scheme’s day-to-day operations will be handled by Rent Masters Ghana Limited, a private company. The scheme’s operations have been outsourced.

Customers’ applications, the distribution of rent advances to landlords, and periodic reports on the scheme’s implementation will all be managed by the private entity.


A person must be 18 years old, be a Ghanaian, and have a valid Ghana Card to be eligible for the program.

The applicant must also have a bank statement, income, and verifiable employment, and the rent must not exceed 30% of the household income.

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Students who meet the eligibility criteria and whose parents are able to guarantee for them will also be supported by the scheme, as will self-employed applicants who qualify based on the eligibility criteria.

According to Dr. Bawumia, one of the government’s major developmental objectives was to provide Ghanaians with adequate housing.

When Dr. Bawumia talked about his visit to the Rent Control Department (RCD) offices in July 2020, he said that he noticed how important the rental housing market overall is to the government’s effort to make housing more accessible.

The Vice President reviewed the law governing rent management in the country to make it more current with current trends and reiterated the government’s plans to improve its effectiveness and efficiency.

The Vice President expressed excitement over the idea’s inclusion in the New Patriotic Party (NPP)’s 2020 Manifesto and subsequent national budget.

He praised Francis Asenso-Boakye, Minister of Works and Housing, and his team for their tireless efforts to create the framework and urged them to fulfill their oversight and supervisory responsibilities for the scheme’s successful implementation.

In addition, he urged all Ghanaians with good intentions to support the initiative, stating:

“As a government, we remain committed to the successful implementation of the scheme for the benefit of every Ghanaian.”

In addition, the Vice-President stated that the government, through the Ministry of Works and Housing, had presented the Rent Bill to Parliament for approval to replace the Rent Act, 1963 (Act 221), which was enacted 59 years ago.

He claimed that the current population growth, urbanization, and availability of housing had outlived the significance of Act 220.

He added that formal procedures had also begun, and a service provider had been hired to digitize the RCD’s nationwide work in order to improve service delivery.

He said that procedure would improve revenue generation and collection as well as provide a consolidated platform for the department’s operations.

In the meantime, the RCD’s data showed that the first beneficiary regions of the scheme had a higher rate of problems related to rent advances.

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He stated that the government’s goal was to implement the plan nationwide.

Mr. Asenso-Boakye assured the nation that his Ministry was committed to addressing the housing sector’s challenges and expressed gratitude to the Office of the Vice President for its crucial role in the scheme’s development.

The minister insisted that the NRAS was one of these vehicles that could adequately assist in the development of public policy and program responses to the challenges.

Additionally, despite the fact that this is the first time the program has been implemented in the nation, he acknowledged that there might be issues with it, promising that the ministry would persevere and improve it.

At the launch, Dr. Anthony Yaw Baah, Secretary-General of the Trades Union Congress (TUC), suggested that the newly launched scheme give women priority.

Additionally, he urged the implementers to provide decent housing for scheme employees, claiming that this would provide them with additional benefits and relief.

He said,

“Let’s pay some more attention to single mothers, especially those with more than one child, because they need support from the state and this will help both the mothers and the children.”

Dr. Baah emphasized the importance of effective scheme monitoring and commended the government for taking the initiative in the face of global economic difficulties.

Ignatius Baffour-Awuah, the Minister of Employment and Labour Relations, pushed for the scheme to give pensioners priority.

He stated that a search conducted by the Social Security and National Insurance Trust (SSNIT) revealed that many pensioners earned GH600 per month, which, according to him, was insufficient for them to acquire decent housing.

As a result, he pledged his support and expressed gratitude to the Ministry of Works and Housing for the initiative.

Transparency At the launch, Nana Otuo Siriboe II, Chairman of the Council of State and Juabenhene, emphasized the need for transparency at all levels of the program to prevent duplicate applications and political interference.

He suggested publishing the scheme’s applications and beneficiaries to prevent duplicates and people who might try to circumvent the system.

Since many of the people who would benefit from the scheme would be workers, Nana Otuo Siriboe also requested that the Labour Ministry and the TUC be included in the leadership.

Credit: GraphicOnline

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