Paradox of Informal Luxury Housing Boom in a Post-Mining Town in Ghana

Abstract

This paper examines spontaneous construction of new housing in Obuasi, the largest gold mining town in Ghana after its closure in 2014. Obuasi has become spatially different as more new luxury houses have been developed by the former miners over a relatively short period without coordination. The paper explores the role of lump sum severance packages received from industrial collapse on housing. Using in-depth interviews with former miners who have built their houses after the mine closure, the reasons for the use of the severance packages to build and thoughts behind the choices of housing typologies have been discussed. This paper established that the former workers built their new houses with their take-home money to overcome the bottlenecks in the formal housing finance market and to fulfil continuity of “good-living” privileges previously enjoyed for working and living in the gold mines. The paper concludes that industrial workers should be provided livelihood options training before they are laid off from their respective employments.

Keywords: Post-mining towns, Obuasi, informal housing, housing finance, Ghana

DOI: 10.7176/JRDM/73-04

Publication date: February 28^th 2021