KOFORIDUA POLYTECHNIC

RENT DIFFERENTIALS BETWEEN RESIDENTIAL AREAS AND ZONGO COMMUNITIES IN GHANA AND DETERMINANTS OR FACTORS THAT MOTIVATE PEOPLE TO STAY OR HIRE AT SUCH PLACES/ AREAS.
A CASE STUDY OF KOFORIDUA OLD ESTATES AND KOFORIDUA ZONGO.

BY BANAFO BENJAMIN DUODU OBED FEKOW SARPONG ALFRED ANGMOR SOLOMON K. OPOKU MENSAH A. RICHARD YEBOAH A. DERRICK ANUM AYIVOR ISHMAEL E. OSABUTEY CATHERINE A. OWUSU BISMARK

2012

DEDICTION
Our expectation is that this case study will be dedicated to all potential researchers who might be embarking on this same case study and to Mr. Jamal Mohammed paved the way for us to embark on this practical research.
ACKNOWLEDGEMENT
We are most grateful to the Lord Almighty for strength, knowledge and wisdom granted to us in our area of study. We also acknowledge every member of our group who contributed their effort to this successful research.

TABLE OF CONTENT PAGE
CHAPTER ONE * BACKGROUND INFORMATION 4 * PROBLEM STATEMENT 4 * OBJECTIVES 5 * RESEARCH QUESTIONS 5
CHAPTER TWO * LITERATURE REVIEW 6 * HYPOTHESIS 6
CHAPTER THREE - METHODOLOGY 7 - RESEARCH DESIGN 7 - SAMPLING DESIGN 7 - REPORT PREPARATION 7 - SCOPE 7 - SIGNIFICANCE 7 - LIMITATIONS 7
CHAPTER FOUR * FINDINGS 8-10
CHAPTER FIVE * CONCLUSION 11 * RECOMMENDATION 11 * SUGGESTION FOR FURTHER STUDIES 11 * REFERENCE 12

CHAPTER ONE
1.1 BACKGROUND INFORMATION
One of the priorities of Governments all over the world is to provide descent accommodation for its citizens through affordable mortgage housing policy interventions. Whereas developed countries such as America, UK, France, Germany etc. have been able to achieve this development goal largely, developing countries like Ghana is bedeviled with serious housing challenges due to weak political leadership, discontinuation of infrastructural projects initiated by previous governments etc.
Worth mentioning is the abandoned affordable housing project initiated by the erstwhile NPP government in the year 2001 to provide 30000 affordable houses in all the ten (10) regional capitals including Koforidua. This and other non-implemented policies have created a very serious housing deficit.
The knock-on effects of this housing deficit is that, it has put tremendous pressure on the very few government residential facilities (public estates) available, invariably making them expensive beyond the reach of the ordinary Ghanaian as the population of the country balloons disproportionately (disjointly).
This aside, the housing deficit has given rise to the springing up of slums and shanty communities popularly called Zongo communities.
Another serious dimension to this problem is the astronomical rent differentials between these Zongo communities and the public estate communities.
It is the light of this that this case study is designed to investigate in particular rent differentials between public residential areas and Zongo communities in Ghana and to further find out the factors that motivate people to stay or hire in such places.

1.2 PROBLEM STATEMENT
The government of Ghana is providing affordable housing units through public-private sector partnership. The expectation is that, these housing units would be priced within the reach of the ordinary Ghanaian.
However, government’s delay in the disbursement of funds o time for the execution of these houses compel private contractors to resort to the banks for loans with high interest rates to complete these houses on schedule.
Contractors in their attempt to re-coup their investments slash this interest rate on the houses making them expensive beyond the reach of the ordinary Ghanaian.
1.3 OBJECTIVES * To determine the rent differentials between Koforidua Zongo and Old Estates. * To examine the rent differentials between Koforidua Zongo and old Estates * To identify the reasons that account for the difference in rent payment between Koforidua Zongo and Old Estates. * To identify the factors that motivates people to stay or hire at Koforidua Zongo and Old Estates.
1.4 RESEARCH QUESTIONS
In relation to the research objectives, the following research questions will be pursued in the study: * What are the rate differentials between Koforidua Zongo and Old Estates? * What are people’s view on the difference in rent payment between Koforidua Zongo and Old Estates? * Why should people living in Old Estates pay different rent amount as compared to those residing in Koforidua Zongo? * What are the factors that motivate people to stay or hire at Old Estates and Koforidua Zongo?

CHAPTER TWO
2.1 LITERATURE REVIEW
The project referred to an article published in ModernGhana.com by Agya Kwaku Ogboro. The article featured the causes of poverty that has a relationship with rent differentials in the Zongo community compared to the Estates. Other references were made in a news article published in vibeGhana.com by the Ghana News Agency (GNA) on February 16, 2012 which featured comments made by the Metropolitan Chief Executive of Kumasi Metropolitan Assembly concerning the sanitation problem in the Zongo Community in the Metropolis.

2.2 HYPOTHESIS
The hypothesis to guide this study is that: * Many people prefer living in Zongo communities to Estates houses due to high cost of rent in the Estates. * Many people prefer the Zongo communities to Estates due to their low income level. * People living in Old Estates pay higher rent compared to those in Koforidua Zongo. * People prefer living in Zongo to Estates due to their religious background.

CHAPTER THREE
3.1 METHODOLOGY * 3.1.1 RESEARCH DESIGN
A survey research design will be used and people from each community will be interviewed on an interview schedule basis. The survey will enable as many people as possible to be contacted to allow for a better generalization. * 3.1.2 SAMPLING DESIGN
Key informant sampling to be used to select appropriate officials and residents from the various communities and the State Housing Company in the Koforidua Municipality for an in-depth interview, using an interview schedule. * 3.1.3 REPORT PREPARATION
The report prepared and findings will be written and documented where implications of the findings will be explained and recommendations made and presented to the research supervisor for further examination.

* 3.1.4 SCOPE
The study will cover people living in Koforidua Zongo and Koforidua Old Estates in the New Juaben Municipality regarding their preference.

* 3.1.5 SIGNIFICANCE
- To acquire new knowledge on rent differentials
- to discover why people live in either communities no matter the rent difference.

* 3.1.6 LIMITATIONS The limitations are problems and difficulties that are to be faced when undertaking the project. These problems are bound to occur since we are going to initially deal with humans to search for information. Although the project has not yet begun but the following are some possible anticipated and perceived problems; - Lack of finance/sponsorship to be able to execute the project effectively, - Some residents may not corporate.

CHAPTER FOUR 4.0 FINDINGS 4.1 OLD ESTATES The old estate was initially established for government workers before the interest of other private individuals begun to increase drastically. So the Lands Commission introduced the hire purchase system that gave privilege to the individuals rent the apartments. Currently, the estates as a whole are divided into classes. (i.e. 1st, 2nd and 3rd class.) With the first class, all drains are intact, streetlights are provided and maintained, good sanitation, good roads and well planned buildings. Also with the second class, there are no drainage systems but enjoy good sanitation, good roads and other amenities. The second and third class looks alike. From the information gathered, old estate belongs to the second class. The rate of rent received by the State Housing Company is moderate compared to the private estates. Old estates make it available for commercial business to carry on in the area. However, permanent structures are not allowed. Also it was discovered that the rent paid by residents in Old Estate ranges from GH₵80.00 or more depending on the place of residence. The State Housing Company normally receives advance for two to three years intervals.
No matter how high the rent is as compared to that of Koforidua Zongo, people still prefer such places due to the following motivating factors: * The environment: the environment is very conducive enough for people to reside there. The environment is not noisy as compared to other communities. There is good drainage system. This helps to avoid flooding of the place and it helps to keep the place very hygienic. There are also good roads all over the place. This enables easy location of houses. * Security: security at the Estate is adequate and as such, there low level of theft cases and other social vices. * Sanitation: disposal bins are provided in each house where the waste management company thereby collects them for disposal. This helps ti keep the community clean and very hygienic for living. * Location: the nearness of the Estate to the central business district allows easy access to transportation. This motivates people to hire in the Estate. * Privacy: residents have their peace of mind since there is no interference from anybody since everyone is enclosed in his/her apartment. * Planned buildings: planned buildings and numberings enables easy location of houses in the estate. Irrespective of the rent differential or no matter how high the rent will be, people find it reasonable to stay at old Estate as compared to the Zongo. 4.2 KOFORIDUA ZONGO
“THE ACQUISITION of knowledge is incumbent upon every Muslim, male and female” --Prophet Mohammed (PBUH) Poverty is a phenomenon no individual would wish for himself. Poverty, more or less, makes one feel inferior to his or her peers and family members alike.
It is indeed a curse to be poor in our part of the world, where people with pockets filled with cowries are treated like demi-gods and those with empty ones treated with scorn and disdain This cancer called poverty has no doubt permeated many communities in Zongo. It is rightly so because, the levels of indiscipline, poverty and insanitation in the Zongo is very alarming. Yet, the leadership of the Zongo community seems to either be oblivious to this fact, or have deliberately turned a blind eye. For example, on February 16, 2012 Mr Samuel Sarpong, Kumasi Metropolitan Chief Executive (MCE), encouraged residents in the Zongo communities to maintain high standards of environmental sanitation to prevent diseases.
He asked the people to do away with unhygienic practices to save the nation from spending huge sums of money treating and managing avoidable diseases. These are some of the problems associated with the Zongo communities in Ghana which influence rent discrepancies as compared to the Estates.
The Koforidua Zongo community was formally located behind the present All Nations University about 30 years ago. It was then relocated to its present place. The relocation was because of the overpopulation of the people in the area and the nearness of the community to the Central Business District. A prominent contractor called Minyilla, who demolished their settlement and moved them to their present are, initiated the relocation. Irrespective of the rent difference, Zongo residents still prefer living in the Zongo due to the following factors: * Language: in order to communicate effectively in their dialect, they thought it wise to commute themselves. They want to stay with those who understand and can speak their language well. They do not want any language barrier. This influences many to stay there. * Culture and heritage play a major role in their settlement. They prefer to commute in order to instill into their children their cultural heritage such as dressing, manners etc. they do not also want to adopt this of others. * They choose to live in the Zongo because they want to stay close to their relatives an order to get assistance when needed. They also prefer to live in the noisy environment and as such, the estate does not befit them. The community assists needy but brilliant children in terms of education through the contributions they make at the mosque. * Their religious backgrounds also motivate them to stay in the Zongo community. This enables them attend the mosque regularly with ease. This also helps them acquire enough Islamic Education. * The community also have amenities such as the market, school among others that enables them access them with ease. This motivates them to stay at the Zongo. * A non-Muslim attested that “if you know how to stay with them, they are really sociable and accommodating”. This gives the assertion that Muslims give respect to others. Also, land acquisition in the community s affordable and easily acquired. Form the above, it could be said tat no matter the rent differentials and lack of other amenities, residents in the Zongo community prefers to stay there to the old Estate.

CHAPTER FIVE 5.1 CONCLUSION It is concluded that * Many people prefer living in the Zongo community because that motivate them to stay there are more influential than that of the Estates. * In addition, there are few people living in the Estate community because of high cost of rent. Due to this, the Estate is seen with high level of income. * Moreover, it is also clear that there is low cost of rent n the Zongo than those in the Estate areas. * Furthermore, people in Old Estate pay higher rent due to the availability of modern amenities, good roads and good sanitation management. * With the existence of the availability of the mosque in the Zongo community, a lot of Muslims prefer to stay there in order to have easy access to the facility and also congregate together to hold their prayers. 5.2 RECOMMENDATION From the above hypothesis, findings and conclusion, we suggest that: * The government should increase the amenities at the Zongo in order to close the gap between the Zongo and the Estates to ensure equity. * The government should build Mosque at the estates in order to encourage Muslims to live in the states. This helps to ensure a mixed culture and religious communities that goes a long way to ensure peace among the people. * The government and other concerned groups should construct good drainage system and roads at the Zongo in order to improve their living conditions. * The high cost of rent in the Estates should be reconsidered in order to make it available for other lower income earners. In conclusion, when the above suggestions and recommendations are met, all residents living in both areas will enjoy equal living conditions and check the problem of rent differentials. 5.3 SUGGESTIONS FOR FURTHER STUDIES The researchers advocate for further researches that, there should be the availability of funds to enable them carry out the research thoroughly in the communities with enough time and resources.

5.4 REFERENCE MordernGhana.com, 2012 VibeGhana.com; Ghana News Agency, 2012 Residents living in Koforidua Zongo and Koforidua Old Estates.