Sir Sam Jonah Questions Legitimacy of Funding Behind Ghana’s Luxury Real Estate Boom
Ghanaian business magnate and Chancellor of the University of Cape Coast, Sir Sam Jonah, has expressed deep concern over the surge in luxury real estate developments across Accra, arguing that many of these projects are being financed through “dishonest” and illicit means.
In an interview on Starr Chat with Bola Ray, Sir Jonah described the proliferation of unoccupied high-rise apartments in the capital’s affluent enclaves as a clear indication of unregulated financial flows within the economy.
“If you walk around my area — Airport Residential, Cantonments, or Labone — look at all the high-rise buildings going up. Everywhere in the world, developers go to the bank to take loans for those developments,” he noted.
According to him, the persistent vacancy of such properties raises legitimate questions about the integrity of their funding sources.
“Some of these apartments are all empty. Do you think that if money were collected from banks, banks would not have moved in? What I’m saying is that they are being funded through sources which are not honest,” he said.
‘Empty Apartments, Full Pockets’ — The Paradox of Accra’s Skyline
Sir Jonah underscored the irony of Accra’s rapidly expanding skyline, which contrasts sharply with the lack of occupancy and transparency in the sector.
He observed that under a properly functioning financial system, developers dependent on bank loans would seek immediate rental income to service debts. The absence of such urgency, he argued, suggests that the capital deployed is not subject to the scrutiny of Ghana’s banking or regulatory systems.
“Go around and ask, ‘Why are the apartments empty?’ If you had gone to the bank to borrow money to build, you would ensure that those apartments are fully occupied,” he stated.
High Cost of Borrowing Makes Bank Financing Unfeasible
Drawing from his extensive corporate experience, Sir Jonah further explained that 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 pointed out that Ghanaian commercial banks lack the balance sheet strength to provide long-term, low-interest financing needed for property development.
“Ghanaian banks are not that well, and their balance sheets are not strong enough to give you patient capital. The interest rates are just astronomical. You can hardly make it as a developer,” he lamented.
With average commercial lending rates hovering between 25% and 35%, Sir Jonah argued that any developer relying on bank financing would be forced to quickly monetize completed properties or face foreclosure.
However, he noted the absence of such foreclosure actions in Ghana’s property market, further reinforcing his suspicion of illicit funding sources.
“Banks have not come to take them over,” he stressed.
A Symptom of a Deeper Economic Malaise
Sir Jonah’s critique, while centered on real estate, touches on a broader concern about the sources and ethics of wealth accumulation in Ghana. He warned that the unchecked inflow of unexplained funds, whether linked to corruption, money laundering, or illicit trade, is distorting both the nation’s economy and its moral fabric.
He described this phenomenon as part of an “uncontrolled, almost insatiable quest for money at all costs,” which, in his view, threatens the integrity of Ghana’s financial and legal institutions.
