Housing Finance in Tanzania

Overview

This profile is also available in French here.

To download a pdf version of the full 2022 Tanzania country profile, click here.

In 2021, Tanzania’s population reached 61,498 with a growth rate of 2.9%. The percentage of urban residents increa from 34% in 2018 to 37% in 2021. Tanzania is expected to reach 49% by 2040, with secondary and tertiary cities seeing the greatest growth. Government development partners include the European Union, the Danish International Development Agency, and the Nordic Development Fund.

Tanzania officially upgraded from low-income to middle-income classification in 2020. The gross domestic product of Tanzania increased by 4.9% in 2021, up from 4.8% in 2020. In November 2021, the inflation rate hit 4.1%, its highest level in three years. Despite the rise in inflation, Tanzania’s inflation rate remains among the lowest and least volatile in the EAC.

As a coastal nation, Tanzania is susceptible to flooding as a result of high precipitation and increasing sea levels. Flood damage to infrastructure, housing, electricity, water, and transportation services will most certainly grow. It is estimated that by 2050, the annual cost of lost land and flood damage will be approximately Tsh466,200,000,000 (US$200,000,000).

The Tanzania Mortgage Refinance Company refinances mortgages for Tanzanian homeowners. The TMRC specialises in refinancing mortgages up to TSh500 million (US$214,344 as a member of the African Union for Housing Finance). 36 commercial banks, 5 microfinance banks, and 2 development banks were licenced in Tanzania in August 2022. CRDB Bank has 38.02% of the mortgage market, followed by Stanbic Bank (8.11%), Azania Bank (7.13%), NMB Bank (6.82%), and NCBA Bank (4.6%). As of December 30, 2022, mortgage debt totaled TSh509.99 billion ($218.72 million). CRDB Bank has 38.02%, Stanbic Bank 8.11%, Azania Bank 7.13%, NMB Bank 6.82%, and NCBA Bank 4.60%.

The UN Green Climate Fund’s executing entity, the CRDB Bank, provides green finance. The CRDB Bank is an accredited financial intermediary and an executing entity of the UN Green Climate Fund.

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 2022 edition, which has up-to-date profiles for 55 African countries and territories.

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