DAR ES SALAAM: THE Tanzanian government has reaffirmed its commitment to continue collaborating with financial institutions, including the Tanzania Mortgage Refinance Company (TMRC), to enable the financial sector’s access to affordable credit facilities.
The initiative is intended to expand opportunities for low-income citizens to own decent housing.
The statement was made in Dar es Salaam by the Deputy Minister for Finance, Mshamu Ali Munde, on behalf of the Minister for Finance, Khamis Mussa Omar, during the official launch of a micro-housing loan service. The service has been introduced by TMRC in partnership with Habitat for Humanity International.
The program aims to provide financial institutions with liquidity of about 30bn/-, enabling them to offer small housing loans to low-income households and support their efforts to acquire decent homes.
Speaking during the launch, Munde said the government supports initiatives that address housing challenges, particularly for low-income groups who often face difficulties accessing formal loans due to a lack of collateral or because their income is small or largely informal.
He added that the new services complement government efforts to increase the availability of affordable and quality housing, while also strengthening the government’s capacity to deliver housing-related services to citizens.
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Meanwhile, the Chief Executive Officer of TMRC, Elibariki Ndossi, said the primary objective of the initiative is to expand access to home ownership opportunities for Tanzanians.
The Housing Finance Director at Habitat for Humanity Tanzania, Daniel Mhina, explained that under the new program citizens will not be required to provide immovable property as collateral in order to qualify for housing loans.
Research conducted by the institutions shows that only about 3 percent of Tanzanians currently have access to mortgage financing, largely because many people are unable to meet the strict lending requirements and loan thresholds set by financial institutions.
Since its establishment in 2010, TMRC has helped expand mortgage lending in Tanzania from 76.7bn/- to 745bn/-by 2025, reflecting steady growth in the country’s housing finance sector and improved access to housing opportunities.
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