Tanzania: Banks Urged to Loan Citizens Wishing to Buy NSSF Houses

FINANCIAL institutions, including various banks, have been urged to come up with a special mechanism for lending money at low interest rates to citizens wishing to buy houses from the

National Social Security Fund (NSSF).

This was noted yesterday by NSSF Director-General William Erio after signing a Memorandum of Understanding (MoU) with various higher learning institutions in Dar es Salaam to provide housing for students located in Mtoni Kijichi, Dar es Salaam.

"This is an opportunity for banks and it is the right time to start the process for those who want to buy these houses to set up a lending arrangement and possibly with special interest that will be affordable to enable Tanzanians to own houses," he said.

Mr Erio noted that was a great opportunity for all Tanzanians to buy or rent NSSF houses which were three to fivebedroom houses.

He emphasised that the banks should utilise such opportunity by setting up a special window of credit for those interested in buying or planning to obtain loans from the respective banks.

In addition, he invited financial institutions, including banks, to visit the houses and find a possibility to buy the houses for their staff.

He explained that among those who intended to use the buildings were students from various colleges. Mr Erio said they had signed a MoU with the Dar es Salaam University College of Education (DUCE), which needed space for 3,000 students.

He said the Institute of Financial Management (IFM) needed space for 3,500 students, Dar es Salaam Institute of Technology (DIT) needed space for 320 students, Tanzania Institute of Accountancy (TIA) needed space for 5,000 students and Mwalimu Nyerere Memorial Academy required about 6,000 spaces for their students.

"So, we have signed a MoU that is important to both parties. When we finalise leasing procedures we know where the market is and they are sure they are going to talk to students and tell them about these houses," he said.

He further said in the Mtoni Kijichi project area there were houses that were ready for use, which could accommodate 4,000 students.

Prof Stephen Maluka, Acting Principal of the Dar es Salaam University College of Education (DUCE) congratulated the fifth phase government on the idea since the university had 6,000 students, but the college's capacity was to accommodate 420 students.

"You will see more than 5,000 students who are struggling with places to stay. We congratulate the government on making efforts to consider accommodation for our students," he said.

Deputy Rector of IFM (Academic, Research and Consultancy) Imanueli Mnzava thanked NSSF for accommodating their students in the houses.

Some students, including Mr Deogratus Medson, president under the Students Government of DUCE, thanked President Magufuli for solving the housing challenge of university students.

Vice-president of Student Government of Mwalimu Nyerere Memorial Academy Amida Hussein thanked the government through NSSF for the housing opportunity which would solve the housing challenge.

The exercise will go hand in hand with the availability of prices for renting or buying NSSF houses from a government valuer.