Focusing on housing microfinance, the partnership aims to support lower-income Tanzanians and those working in the informal sector to more easily purchase, build or upgrade their homes, a segment of the population that has traditionally been underserved by the housing finance sector.
“The government is committed to such initiatives which are seeking to address housing challenges, especially for the low-income section of the population who have an even bigger challenge accessing formal mortgage loans due to their income levels,” said Hon. Ridhiwani Kikwete (MP), Deputy Minister of Lands, Housing and Human Settlement Development - URT.
Tanzania has one of the fastest growing economies in the world, however many families still struggle to access adequate and affordable housing. The high cost of formal financing options and limited affordable housing supply remain challenges. The Center for Affordable Finance in Africa estimates that Tanzania has a backlog of over 3 million homes, with demand growing by 200,000 homes annually.
“Habitat for Humanity and TMRC share a commitment to expanding access to quality housing for all families. This new collaboration is a key step to realizing that goal in Tanzania and will be instrumental in unlocking new housing finance opportunities for low-income families,” said Maurice Makoloo, vice president, Africa – Habitat for Humanity International.
“TMRC believes there is tremendous potential in Tanzania’s housing finance market to reach low-income families. As a wholesale lender we are eager to build a case for housing microfinance in the country and explore how the financial institutions we invest in can tap into this market through tailored loan products,” said Oscar Mgaya, Chief Executive Officer – TMRC.
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