Two projects aiming to improve the housing market in Tanzania are bringing the rough equivalent of USD 70 million to the sector.
Shelter Afrique, a pan-African real estate development facilitator, has set aside almost TZS 42 billion (USD 30 million) for real estate developers and lenders to finance 600 housing units in Tanzania. The funds are in addition to a TZS 56 billion (USD 40 million) soft loan from the World Bank intended to develop the housing mortgage finance market through the creation of the Tanzania Mortgage Refinancing Company (TMRC).
With the World Bank funding, the Tanzanian government is in the process of establishing TMRC as a medium- to long-term mortgage liquidity facility. It is reported that additional funds for TMRC may be raised in the future through a bond issue. Mr John Chiligati, the Minister of Lands and Human Settlement Development, stated that the aim of the project is to “put in place and promote a housing microfinance system that will make housing loans accessible to the disadvantaged, specifically the low income groups in our society” [1].
By Witt Gatchell, Research Associate
About Shelter Afrique:
Shelter Afrique, based in Kenya, was established in 1982 by African governments, African Development Bank and Africa-Reinsurance with the mandate of mobilizing resources for housing development in Africa. The company provides financial and technical assistance for housing and urban development activities. The company offers residential real estate programs, commercial real estate programs, infrastructure and land development financing programs, mortgage financing, contractor support services and trade financing for building material procurement.
Sources and Additional Resources:
[1] The Citizen: “Sh42bn up for Grabs in Housing Scheme.” August 28, 2010. http://www.thecitizen.co.tz/component/content/article/37-tanzania-top-ne…
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