Redefining Affordable Housing in Ghana : The JL Properties Ghana Approach to Urban Development

You previously mentioned joining Ghana’s Affordable Housing Scheme. How has your perspective evolved since then, and are there any new developments regarding your involvement?

I say this all the time, and then what are we actually trying to do? Are we trying to do social housing or affordable housing? These are two different aspects of housing. We are mixing the two in this country, and we are taking social housing as affordable housing and affordable housing as social housing. If we do not get a clear definition of what is good and what is bad, my approach has still not changed.

Unless our stakeholders—government is a stakeholder in the shelter industry—are able to give me a clear view or a clear plan, I am on my own, basically. If you do affordable housing and it ends up costing $60,000 or $70,000, it is not affordable. If a two-bedroom apartment grows into $100,000, it is not affordable. And that is where it is going from what I see the players in there now. That is the kind of prices that I am seeing happen.

If someone could do something in the range of $15,000 to $25,000, then we are in business, and we can join up and do it. But apart from that, what JL is doing is that for every mid-range apartment or house it builds, every 10 of them will do a social project for two units. So we can then accumulate it and give it out to the public. But it is still not enough. We are really, really down with the numbers.

That is what I am saying. That is why I am saying that we have a shortfall of 2-point-something million homes. I laugh. Is it really a shortfall or an inability to pay? We should not confuse it, and we are confusing it. So that is where we are.

The last time we had a discussion, I told you about our venture into apartments. We have ventured into it in a big way—huge. In total, in the city, we are doing 600 two-bedroom apartments. For a country like Ghana, for an indigenous developer, doing 600 two-bedroom apartments at the same time is huge. I mean, if you go to China and do 600, it is nothing. The Chinese are doing 10,000 apartments at a time.

For us here, with our capacity and income level, if a developer—an indigenous one—is doing 600, we are proud of what we are doing. We are cautiously optimistic about the kind of numbers and prices that we have given it. Because then we can even say we are doing affordable apartments, because we are doing apartments in the heart of the city for $58,800 equivalent. That is mind-blowing.

That is why our apartment sales are strong. The developer is smart because just 300 or 400 meters away, our competitors are doing apartments for $200,000—same thing, two-bedroom. We even have a bigger space, but we just wanted to prove a point. For us, profit is secondary. What matters is putting a good job, putting a good quality apartment to showcase what an indigenous company can do.

So we are soldiering on. We are doing what we are doing.

The 6,600 units, are they all at one place?

No, we have four different locations. We are doing 300 new apartments at Roman Bridge, which is really, really in the city centre. We are doing 150 at the north of the airport. The area is called North Airport. It is a developing area, but all around it is developed. We have an enclave where different developers are working.

We are doing a shorter mall. We are doing 100 new apartments. Just across from where our office is, we are doing another 50 apartments. So in total, 600 new apartments.

We are also doing apartments in Kumasi, but that one is on order from one of our valued clients. We are doing that for Kumasi as well

What motivated your entry into the apartment sector? Was it driven by the need to optimize space as an inner-city developer, or were there other factors influencing this decision?

So what happened was that we had a client. We tendered for a job and wanted to build apartments because they had seen the work we had done and believed that we could do apartments. We are really specialists in townhouses, and they believed in what we could do. The price was really, really not something that many developers would do, but this was a very valued client, so we said we would do it.

Initially, they said we should do 56 two-bedroom apartments. They saw what we were doing and said to add another 50. So we gathered the expertise while doing that and decided to venture into it to balance our portfolio, so it would not only be townhouses we were doing but apartments as well.

Now, we have come to love apartments, and we think we will run with the knowledge we have acquired.

Are more clients coming out from there?

There are more people signing in from there. We are specializing in two-bedroom apartments because, in this nation, people have the mistaken belief that they can just wake up one day and have a six-bedroom house. It does not work like that. You start from one bedroom.

In Hong Kong, they even moved the size of apartments from six square meters to eight square meters. Do you know how small that is? But that is what they are doing because they are struggling for space. So, if a young family wants to start life with a three- or four-bedroom house, it does not add up—it puts strain on your budget.

We plan to encourage young families to start with apartments—a one-bedroom apartment—and then move to a two-bedroom. When they make more money, they can move to a house. It is our way of educating and encouraging the populace when it comes to housing.

You start a foundation, and then the draftsman will lie to you, saying you can add this space to make it bigger and that space to make it bigger. Before you know it, all your money is spent on the foundation. It will take you another two years to get back to developing your property.

In that time, your timber, materials, and site storage will rot away. People will come and steal. When you go back, the costs of demobilizing and mobilizing to the site are expensive. So, why not leave it to a developer to take care of it for you?

If you leave your land for two or three years, chances are, by the time you return, there will be litigation on it. Our land tenancy system and the land system itself have challenges and difficulties—multiple ownership, and unnecessary conflicts.

People need to understand that it is better to leave houses for registered developers to develop for them. I will be the first to admit that there are charlatans in the industry, as there are in every industry.

But these days, when you want information, it is easy to get. Clicking on a site can give you a developer to go to, and checks here and there will provide you with the necessary information. The easiest way to check a developer is to find their last customer. That will give you an idea of the person’s activity and capacity. That is one of the things I always encourage people to do—go to developers.

What progress has been made so far regarding the real estate funds and the government’s involvement?

I have two candidates in their manifestos, and both of them include aspects of housing and real estate in their party policies. Yesterday, I was listening to an engagement with the New Patriotic Party and its flag bearer. He had a very detailed plan about housing and real estate.

All the things I have been talking about for years are included in the development of a fund, using pensioners and the pension fund to invest in real estate and infrastructure development. These are interesting times. I am eager to see what will happen on the other side in the next year or two.

Shelter is a human rights issue, and any government that does not address it well faces a significant challenge, as is the case in many places. Addressing shelter effectively always reflects positively on the people you govern. When people have a decent place to live, they can think clearly about tomorrow, go to work in a good state, and contribute productively.

It is cyclical—shelter, food, health. These are basic needs.

Buying a house with a mortgage is very expensive now. Besides affordable housing and flexible payments, what other ways can you help people own homes?

We have a very flexible payment system. For every client, we provide a tailored solution based on their specific needs. The difficulty in this country is the lack of a strong banking culture, and there is a history behind it. Years ago, during a revolution, people lost money in the banks. Fast forward to recent times, bondholders faced significant problems. This history affects people’s trust in the banking system.

Ghanaians are unique in their approach. This is one of the few places—perhaps alongside some parts of Nigeria—where someone might approach you to buy a house and, despite their appearance, return with $20,000 or $30,000, or its cedi equivalent. They may not pay the full amount immediately but will continue making payments over time. We have created a system to accommodate such clients, as there are many who prefer this approach.

I often tell people that the mortgage system in this country can be burdensome. The increasing balance will overwhelm you, and the arrangement fees alone can cost about $10,000. In the end, you may be asked for something impractical, like your mother’s birth certificate. Some of the requirements to obtain a mortgage here are simply unreasonable. For example, why should a health issue disqualify someone from owning a house?

At JL, we offer an in-house mortgage system. While we may not provide a 10-year term, we can arrange reasonable timelines, such as 48 to 60 months, with interest rates lower than the banks. We also offer flexibility—if there are months you cannot pay, we sit down with you to work out a solution. Our system allows for direct communication, which makes it easier to manage payments.

The rigidity of systems in places like the UK cannot work in Ghana. Ghanaians need flexibility, and that is what we provide. Although we are building about 200 houses annually, which makes us one of the biggest inner-city developers, it is still a small number compared to the housing needs of the country.

The issues with mortgages, payment systems, and inconsistent payment schedules are challenges we face. It is human nature to forget repayment responsibilities once a solution is provided, but at JL, we focus on education. We guide our clients because, without a stable and assured income, mortgages can lead to trouble.

Unlike many others, we put people first. For us, it is not just about money; it is about ensuring that clients understand and manage their commitments effectively.

Could you share details about your expansion plans?

Cote d’lvoire is already established. Nigeria we didn’t go, we didn’t push too hard because of the problems that we had with the elections and then the after problems that they’ve have and still having.So we are concentrating on Cote d’Ivoire and we are doing a bit more in Malta. We are doing some things with the Portuguese all in real estate and infrastructure development. And our Ivorian wing is pretty much established and we are doing quite well there.

So where have you started? Do you have any properties that you are managing?

We are developing townhouses in Côte d’Ivoire, specifically around the Bassam area. While it’s not as large as our operations here, it’s a promising venture. We have several Ivorian clients residing in Abidjan who have purchased homes from us here, and they encouraged us to expand there. They’ve already bought some land from us, so the project is progressing well.

What are the plans in stock for next year?

The interesting thing we have done now is a lot of expansion. We are not only focusing on housing. JL is our flagship. JL brings in the money, and we reinvest it in other areas. We’ve expanded significantly. We have a bakery; we set up JL Bakery this year, and it’s doing very well. We built a modern factory, and we produce bread and pies. We are also moving into our farming business. We are doing integrated farming, planting corn, plantains, and cassava. It’s interesting. We are setting up an integrated farming approach to finance JL. Our main goal is to employ more people. We’re planting corn, plantains, cassava, and doing fish farming. We have 70 acres of fresh water dedicated to fish farming. We are moving into proper cage farming for tilapia. Additionally, we have a poultry farm with 100,000 beds. Our poultry droppings will feed our vegetable and cassava farms. We’ve bought machines and are installing them. We are working on planting corn to feed our poultry and processing cassava into powder for storage and seeding.

At present, we have almost 5,000 acres of farmland, and we are investing in more. We are also collaborating with the Forestry Commission to plant 1,000 acres of trees in Oda, including Melaina and Sedrina trees. One of our directors said that next year, we should consider entering the regional best farmer competition because the size of our farms is huge.

In addition, we’ve bought into a product called Irigo Optima, an AI solution for water and soil management. We are the West African distributor for this Maltese company. We are working with the University of Cape Coast, University of Ghana, and JL Plantation to develop and distribute this product across the country.

Our road construction and government school building company is also doing very well, with lots of progress. The holding company is currently managing at least 20 active projects simultaneously, spread from Nalerigu to Suta, Kumasi, and across Accra. At Sumatra Mall, we are starting the second phase with 250 new houses, including apartments.

We are in our own world, so to speak. It’s not without challenges, obviously—finance issues, the attitude of Ghanaians, and myself included. But overall, I wouldn’t change anything. When people ask me what I would do differently, I joke that I wish I were 10 years younger to do even more, but that’s not possible. Besides that, I wouldn’t change a thing. I have amazing staff and managers. We have our fights, but that’s just because of the projects. They’ve bought into my vision.

When people ask about succession, I tell them I’ll be gone in eight years. Succession is from within. We have a culture here at JL. People must be willing to work the long hours I used to put in at IBM. They need to work as if the company is their own. What’s interesting and intriguing to me is the sense of belonging we’ve built. People genuinely feel and appreciate that everything the company achieves belongs to them too. This sense of belonging is one of our great attributes.

I have no regrets at all. It’s been an amazing journey. Now, people recognize us as true leaders in the field. This year alone, I’ve won almost every award available. I’ve lost count. I’ve won Man of the Year, Indigenous Company of the Year, and Company of the Year. These are big awards I didn’t even chase. Recently, I got a letter saying I’m among Uganda’s 100 most influential people. When I saw my position, I thought, “Others out there are more influential than me.” But it’s all because of what we’re doing. I was amazed when I saw one of my colleagues post on LinkedIn, teaching me how to package myself for others to find me. I don’t believe in that. We’ve waited for people to find us, and they have.

Briefly Speak on your goals for the projects you are currently working on in that space?

What we are trying to do now is to establish a health arm. Last year, we signed an agreement with St. James Hospital, a healthcare company in Malta. It’s a non-private entity with branches in Zeytun and Dubai. With the facilitation of the Maltese High Commissioner, we set up to sign an agreement to bring them to Ghana. We’re building the hospital and equipping it with modern medical equipment. It’s incredible what we’re doing.

This was our first move. Then, another company approached us to partner in establishing a Google Strip company in Ghana to supply West Africa. They explained the challenges with sugar and diabetes and emphasized the importance of preventive medicine. We’ve signed the agreement, and last week, I was in a meeting to finalize the details. We’re going to build a factory for this, and what excites me most is the pricing. Our prices will be better than anyone else in the market. In about 18 months, we’ll have it up and running.

Our primary goal isn’t to make money but to contribute to improving the healthcare system. The financial rewards will come. As I always say, money is secondary; it will follow if you do things well. This is our direction in the healthcare industry.

Though my first degree was in biochemistry, I left that field 20 years ago and haven’t practiced it. But I’ve always had a passion for healthcare, and I’m now returning to it.

Is there anything you would like to add or discuss that we have not covered yet?

In academia, as I mentioned earlier, I plan to give back to this space. My goal is to leave Cape Coast Technical University in a better state than I found it. I consider it the best technical university in Ghana and possibly in West Africa. However, we face many challenges. I’m leveraging my network to help address these issues and bring in the necessary resources. We aim to attract more students to improve our Internally Generated Funds (IGF), which will allow us to generate more revenue for development. It’s an exciting journey, and I am eager to give my best in this area.