Housing Finance in Tanzania

Overview

This profile is also available in French here.

To download a pdf version of the full 2019 Tanzania country profile, click here.

Tanzania borders the Indian Ocean to the east and has land borders with eight countries within the East and Southern African regions. The country’s population is estimated at 56.32 million with the country considered predominantly rural. The urbanization rate is 5,1 percent. Tanzania’s rapidly growing population, coupled with relatively high economic growth, presents an excellent opportunity for both investors and other stakeholders investing in housing.

Tanzania has sustained a relatively high economic growth over the last decade, averaging six percent to seven percent a year. This growth has been driven by market-oriented reforms, prudent macroeconomic policies, and these have led poverty reduction, and improvements in social indicators.

The financial services sector in Tanzania is regulated by the Bank of Tanzania (BOT) which regulates banks and financial institutions, and the Capital Markets and Security Authority, which regulates capital markets. The banking system is dominated by privately-owned commercial banks with 18 domestic and 29 majority foreign-owned banks holding 92 percent of banking assets.

Lending is concentrated in the corporate sector, and in a few economic sectors, mainly trade, construction and real estate, and manufacturing. While demand for housing and housing loans remains high, it remains challenged by limited supply of affordable housing and high interest rates.

Since the vast majority of households do not have access to formal finance, the bulk of housing stock in the country has been built by individual households, and through personal savings or informal financial sources. The government has however taken several measures to facilitate access to housing and to planned, surveyed and serviced land for housing and other urban activities. The government recently initiated the development of a Housing Information Centre which, if successfully implemented, could lead to a better understanding and monitoring of housing needs for delivery of effective solutions.

There are a number of public sector agencies investing in housing, including the National Housing Corporation (NHC), the National Social Security Fund, the Tanzania Building Agency, and the Watumishi Housing Company (WHC). WAT-Human Settlements Trust has also undertaken a number of housing projects since 2019, with projects ranging from 18 to 133 units.

Find out more information on the housing finance sector of Tanzania, including key stakeholders, important policies and housing affordability:


Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2019 edition, which has up-to-date profiles for 55 African countries.

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