Housing Finance in Tanzania
Overview
This profile is also available in French here.
To download a pdf version of the full 2020 Tanzania country profile, click here. 
Tanzania is an East African country that borders on the Indian Ocean. The population was estimated at 58 million in 2019, having grown by three percent. Approximately 34.5 percent of the population live in urban areas and 65.5 percent live in rural areas. Over 60 percent of the population in urban areas live in informal settlements, which are often associated with poor basic amenities. Tanzania has a population growth and urbanisation rate of 2.95 percent and 5 percent, respectively. Forty-seven percent of Tanzania’s population are estimated to be living below the national poverty line. In the decade ahead, Tanzania’s rapid urbanisation rate will continue to put pressure on the need to adequately meet surging demand for affordable housing and basic services, which has now been exacerbated by the COVID-19 pandemic.
Tanzania reported its first case of COVID-19 on 16 March 2020 but did not order a lockdown. Instead, the country shut down learning institutions, banned public gatherings, imposed mandatory self-quarantine for travellers from risk areas, and limited travel by citizens to other countries. The Bank of Tanzania (BOT) reduced the discount interest rate by two percentage points as well as the cash reserve ratio for banks by the same margin. The government of Tanzania also authorised commercial banks to renegotiate loans with customers. This could include increasing repayment periods and reducing installment amounts. In the housing sector, a moratorium on evictions was put in place and the government further responded to the impact COVID-19 had on informal settlements through public awareness campaigns.
The economy grew by 5.7 percent in the first quarter of 2020, mainly attributed to growth in the construction sector together with agriculture, mining and quarrying, and transport activities. Tanzania’s current GDP growth rate is 1.04 percent.
The banking sector is regulated by the central bank (BOT), and comprises largely of commercial banks, who extend mortgages and personal loans. The mortgage market in 2019 saw some improvements in the number of mortgage banks, outstanding mortgages and the value of mortgage loans, when compared to 2018. However, COVID-19 slowed down bank activities as banks remained uncertain about lending to retail and small and medium-size enterprises. Banks reported a reduction in profits as interest and non-interest incomes declined. Overall, mortgages only contributed 0.3 percent to GDP in 2019. The use of banking services by the population is also generally low.
The majority of the urban population is reported to be renting their dwellings. Access to affordable and adequate housing shows disparities among households where the dwelling is located and for gender. The price of the cheapest newly built house is TSh180 million (US$78 000), 288m2 and would be a one-bedroom house. Only 2.7% of urban households could afford the cheapest newly built house.
Property markets in urban areas are dominated by the private sector, which has market share of over 75 percent. The government participates in property development mainly through the National Housing Corporation (NHC) or Tanzania Building Agency (TBA), especially in providing social housing, which may be considered risky by the private sector. There are a number of ongoing projects undertaken by the NHC. The number of houses completed by the NHC in 2019 was approximately 1 459.
There is an acute shortage of accommodation in urban and cosmopolitan areas, mainly due to the rapid growth of economic projects and the population, which has increased demand for residential and commercial properties. The NHC, the TBA and other private firms require synergies that can support property development. Opportunities available include the development and management of housing estates, residential apartments, office buildings, conference and banquet facilities, shopping malls, hotels, and the provision of home financing.
Find out more information on the housing finance sector of Tanzania, including key stakeholders, important policies and housing affordability:
- Overview
- Access to finance
- Affordability
- Housing supply
- Property markets
- Policy and regulation
- Opportunities
- Availability of data on housing finance
- COVID-19 response
- Websites
Each year, CAHF publishes its Housing Finance in Africa Yearbook. The profile above is from the 2020 edition, which has up-to-date profiles for 55 African countries.
Download yearbookTanzania
Overview
Tanzania is an East African country that borders on the Indian Ocean. The population was estimated at 58 million in 2019, having grown by three percent.[1] Approximately 34.5 percent of the population live in urban areas and 65.5 percent live in rural areas. Over 60 percent of the population in urban areas live in informal settlements, which are often associated with poor basic amenities. In 2019, the unemployment level was reported at 2.2 percent of the labour force.[2] The economy of Tanzania was TSh145.34 trillion (US$63.1 billion) in 2019 having grown by 5.8 percent, and this translated into gross domestic product (GDP) per capita of approximately TSh2.58 million (US$1.112).[3] The country ranks 159 in the world in the United Nations Development Programme’s Human Development Index,[4] with a score of approximately 0.53. Income levels are moderately distributed among the population, given a Gini coefficient of 40.5 in 2017[5]. The country ranked 141 in terms of ease of doing business in 2020, with a score of 54.5.[6]
Tanzania reported its first case of COVID-19 on 16 March 2020, and by May had reported 509 cases with 183 recoveries and 21 deaths.[7] Tanzania’s response to COVID-19 included closing education institutions, sporting events and public meetings. However, Tanzania did not order a lockdown; establishments continued doing business, with containment measures in place that included observing basic preventive measures such as social distancing, wearing a mask, handwashing and sanitising. Some sectors, such as tourism and hospitality, air transport and international trade were affected. The economy grew by 5.7 percent in the first quarter of 2020, mainly attributed to growth in the construction sector together with agriculture, mining and quarrying, and transport activities.[8]
[1] World Bank (2019). Data. Population, total – Tanzania. https://data.worldbank.org/indicator/%20SP.POP.TOTL%20?locations=TZ (Accessed 10 August 2020).
[2] World Bank (2019). Data. Unemployment, total (% of total labour force) (modelled ILO estimate) – Tanzania. https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=TZ (Accessed 17 September 2020).
[3] World Bank (2019). Data. GDP (current US$) – Tanzania. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=TZ (Accessed 10 August 2020).
[4] United Nations Development Programme (2019). Human Development Report 2019. http://hdr.undp.org/sites/default/files/hdr2019.pdf (Accessed 20 August 2020). Pg. 302.
[5] Trading Economics. Tanzania – Gini Index. https://tradingeconomics.com/tanzania/gini-index-wb-data.html (Accessed 7 October 2020).
[6] World Bank (2020). Doing Business 2020. https://openknowledge.worldbank.org/bitstream/handle/10986/32436/9781464814402.pdf (Accessed 19 August 2020) Pg. 4
[7] African Development Bank (2020). African Economic Outlook 2020: Supplement amid COVID-19. July 2020, https://www.afdb.org/en/documents/african-economic-outlook-2020-supplement (Accessed 9 September 2020). Pg. 103.
[8] Bank of Tanzania (July 2020). Monetary Policy Committee Statement. https://www.bot.go.tz/Adverts/PressRelease/en/2020072815244301.pdf (Accessed 20 August 2020). Pg. 1
Access to finance
The banking sector is regulated by the central bank, the Bank of Tanzania (BOT). The banking system comprises 37 commercial banks, two development finance institutions, three financial leasing companies, two regional town municipal banks outside regional capitals, three microfinance banks, one mortgage refinancing company, one non-bank institution, one housing finance company and one regional town council.[1] COVID-19 slowed down bank activities as banks remained uncertain about lending to retail and small and medium-size enterprises. Banks reported a reduction in profits as interest and non-interest incomes declined.[2]
Housing finance in the country ranges from mortgages to personal loans, which are not specified by borrowers. The mortgage market in 2019 saw some improvements in the number of mortgage banks, outstanding mortgages and the value of mortgage loans, when compared to 2018. Between 2018 and 2019 the number of banks offering mortgages increased to 34 from 32, and the number of outstanding mortgages grew to 5 460 from 4 996. The monetary value of the outstanding mortgages amounted to TSh438 billion (US$189 million) in 2019 from TSh421 billion (US$182 million) in 2018, and these were offered on an interest rate range of 15 percent to 19 percent. However, the average value of mortgage dropped from TSh84 million (US$36 000) to TSh80 million (US$34 000), which is attributable to the rise in the number of mortgages.[3] Housing financing by non-banking institutions is associated with four active registered housing cooperatives in 2018, whose members’ shares amounted to TSh890 million (US$384 000).[4]
Overall bank lending to the private sector increased by 11.1 percent in 2019 compared to 4.9 percent in 2018, and this was attributed to increased demand in trade, building and construction, real estate, agriculture and personal activities.[5] The cumulative share of the building, construction and real estate sectors in the loans advanced increased from 8.1 percent to 10.9 percent over the same period.[6] Non-performing loans in the banking sector declined from 10.5 percent to 9.6 percent due to a decrease in doubtful and loss loans, with both remaining below four percent. The share of the real estate sector in access to credit decreased from four percent to three percent. Similarly, the real estate sector’s share in non-performing loans decreased from approximately 17 percent to eight percent between 2018 and 2019.[7]
In response to COVID-19, the government of Tanzania, through the BOT, authorised commercial banks to renegotiate loans with customers. This could include increasing repayment periods and reducing instalment amounts. The BOT also reduced the minimum reserve requirement ratio from eight percent to six percent and the discount rate from seven percent to five percent, and opened the mobile money wallet to allow for transacting in larger amounts. The daily mobile wallet transaction limit to customers was expanded from TSH3 million (US$1 294) to TSH5 million (US$2 156) and the daily balance from TSh5 million (US$2 156) to TSh10 million (US$4313). The financial risks that the banking market was exposed to due to the pandemic included loan rescheduling, increases in bad debts and reduced demand for loans.
Use of banking services by the population is low, with only 12.3 percent of households having at least one member with a bank account.[8] Only 6.1 percent of rural households had at least one member who had a bank account, compared to urban households which had 23.8 percent, according to a National Bureau of Statistics survey conducted in 2017/18. Gender demographics show that males had greater access to banking services than their female counterparts, with at least 13.5 percent of households headed by males with a bank account compared to only 9.4 percent among female-headed households.
The main funding for mortgages are customer deposits and concession loans from the Tanzania Mortgage Refinancing Company.[9] Borrowers of mortgages are required to pay a down payment, which is typically 10 percent of the value of the house to be constructed or bought.[10] The typical mortgage term is 20 years21 with some banks offering shorter or longer payment periods, between 10 years[11] and 25 years.[12] The lending rate was 16 percent on average, with some banks requiring 15 percent to 19 percent.[13] There were 460 microfinance loans in 2019, from two out of the five registered microfinance institutions,[14] (EFC Tanzania Microfinance Bank and Yetu Microfinance Bank). However, EFC, Hakika Microfinance Bank and Mwanga Community Bank have since merged.[15] WAT-Human Settlement Trust (WAT-HST) provides housing microfinance services, community mobilisation, housing support services, and works on a variety of land and construction projects.[16]
[1] Bank of Tanzania. List of Licensed Institutions. https://www.bot.go.tz/BankSupervision/Institutions (Accessed 10 August 2020).
[2] The East Africa. COVID-19 shock dims earnings prospects for EA banks for 2020. 7 June 2020. https://www.theeastafrican.co.ke/tea/business/covid-19-shock-dims-earnings-prospects-for-ea-banks-for-2020-1442854 (Accessed 15 August 2020).
[3] Bank of Tanzania and Tanzania Mortgage Refinancing Company (2019). Tanzania Mortgage Market Update – 31st December 2019. https://www.bot.go.tz/Adverts/PressRelease/en/20200610213039157.pdf (Accessed 2 August 2020). Pg. 1.
[4] Tanzania Cooperative Development Commission (2018). Statistics by Region and Cooperative Type as of December 31, 2018. https://www.ushirika.go.tz/statistics/category/registered-saccos (Accessed 1 September 2020).
[5] Bank of Tanzania (2019). Financial Sector Stability Report. https://www.bot.go.tz/Publications/Regular/Financial%20Stability/en/202006092200589821.pdf (Accessed 10 August 2020). Pg. 17.
[6] Bank of Tanzania (2019). Financial Sector Supervision Annual Report 2019. https://www.bot.go.tz/Publications/Other/Banking%20Supervision%20Annual%20Reports/en/2020082419582493.pdf (Accessed 2 August 2020). Pgs. 11-12.
[7] Bank of Tanzania (2019). Financial Sector Stability Report. https://www.bot.go.tz/Publications/Regular/Financial%20Stability/en/202006092200589821.pdf (Accessed 2 August 2020). Pg. 18.
[8] National Bureau of Statistics (2019). Household Budget Survey 2017/2018. https://www.nbs.go.tz/nbs/takwimu/hbs/2017_18_HBS_Key_Indicators_Report_Engl.pdf (Accessed 11 July 2020). Pgs. 25-26.
[9] Tanzania Mortgage Refinancing Company. Funding and Pricing. https://www.tmrc.co.tz/services/category/funding-and-pricing (Accessed 18 August 2020).
[10] CRDB Bank. Jijenge Loan. https://crdbbank.co.tz/jijenge-loan/ (Accessed 18 August 2020).
[11] Equity Bank Diaspora Mortgage/Construction Loan. https://tz.equitybankgroup.com/diaspora/diaspora-loans/ (Accessed 18 August 2020),
[12] Azania Bank. Azania Wakala. https://azaniabank.co.tz/index.php# (Accessed 22 August 2020).
[13] Bank of Tanzania and Tanzania Mortgage Refinancing Company (2019). Tanzania Mortgage Market Update – 31st December 2019. https://www.bot.go.tz/Adverts/PressRelease/en/20200610213039157.pdf (Accessed 2 August 2020). Pg. 1.
[14] Bank of Tanzania and Tanzania Mortgage Refinancing Company (2019). Tanzania Mortgage Market Update – 31st December 2019. https://www.bot.go.tz/Adverts/PressRelease/en/20200610213039157.pdf (Accessed 2 August 2020). Pg. 13,
[15] Bank of Tanzania (2020). Public Notice: In Respect of Mwanga Community Bank Limited, EFC Microfinance Bank (Tanzania) Limited and Hakika Microfinance Bank Limited. https://www.bot.go.tz/Adverts/PressRelease/en/2020082512424398.pdf
[16] WAT-Human Settlements Trust. What we do. http://www.wat.or.tz/ (Accessed 10 August 2020).
Affordability
The price of the cheapest newly built house with a size of 288m2 is TSh180 million (US$78 000) and would be a one-bedroom house.[1] This translates to the average price per square metre of a residential dwelling in the main urban centre being approximately TSh700 000 (US$300). The typical monthly rental in an urban area for the cheapest newly built house is approximately TSh300 000 (US$130), while the typical annual rent per square metre for residential dwellings in the main urban centre is approximately TSh12 860 (US$5.55). The minimum size of a residential plot in urban areas is 505m2 (an eighth of an acre). The cost of a standard 50kg bag of cement is approximately TSh14 000 (US$6), however, these vary across and within the urban areas. The average cost of labour is approximately TSH20 000 (US$9) a day, but this varies across levels of skill and type of profession.
The inflation rate improved in 2019 to approximately 3.46 percent compared to 3.49 percent in 2018. This increased purchasing power by making commodities relatively affordable.[2]
The National Housing Corporation (NHC), which is a government entity established to undertake various businesses in real estate, is lobbying for value-added tax (VAT) exemptions and a subsidy on construction materials and plots, which will enhance the affordability of properties.
[1] Zoom Tanzania. Houses for sale in Tanzania. https://www.zoomtanzania.com/houses-for-sale/house-for-sale-at-mikocheni-1702634 (Accessed 5 August 2020).
[2] World Bank. Data. Inflation, consumer prices (annual %) – Tanzania. https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?locations=TZ Accessed 10 August 2020).
Housing supply
Access to affordable and adequate housing shows disparities among households in where the dwelling is located and for gender. The average household size in Tanzania is 4.6 persons, but male-headed households are bigger in size (4.9) compared to female-headed households (3.9). Rural households have a larger average household size (4.9) than urban households (4.2).[1] The use of modern materials for construction increased over the 1991-2018 period. Households with modern walling increased from 16 percent to 79 percent, households with modern flooring from 21 percent to 51 percent, and households with modern roofing from 35 percent to 64 percent. Dwellings in urban areas are in better condition than rural areas, as 94 percent of households in urban areas had better walls compared to 70 percent in rural areas, while only 77 percent of households in rural areas had better roofs compared to 98 percent in the urban areas. Only 32 percent of rural households had better floors compared to 85 percent in urban areas.[2] For access to basic amenities, approximately 63.2 percent of households in urban areas are connected to electricity compared to 10.4 percent in rural areas. Access to improved water was 87.6 percent in urban areas compared to 65 percent in rural areas, while for sanitation services, 41 percent of households had improved toilet systems in urban areas, compared to 16 percent in rural areas.[3]
According to a 2019 report by the National Bureau of Statistics, approximately 64 percent of the population believe that their properties are tenure secure; however, security levels on ownership and use of property remain low among renters, at 37 percent.[4]
The role of the state in housing delivery can be seen as two-fold, creating an enabling environment[5] and active investment in developing properties.[6] Through the NHC the government develops houses for purchase or rental, with houses for purchase on a tenant purchase system, mortgage, or cash payment.[7] The Ministry of Lands, Housing and Human Settlements is seeking to digitise the land registry by establishing an integrated land management information system, enhancing urban planning and establishing district councils for dispute and conflict resolution, as planned in the national five-year plan of the country[8] and in line with its core functions.[9]
Some of the ongoing projects undertaken by the NHC include Morocco Square, Kawe, SafariCity, Golden Anniversary, Iyumbu Satellite Centre and My Home My Life. Some of the upcoming projects include Iyumbu Phase II, Salama Creek, Usa River and Uptown Kawe. Completed NHC projects include Victoria Place, EcoResidence, Mwongozo, Kigamboni Mchikichi, 274 Chato, Medeli, Levolosi, Shangani, Rahaleo, Meru Residential and Rahaleo Complex.[10]
Data on the total number of formal dwellings in the country is not readily available, but annual registration, which is reported, can help if all years are compiled. The cumulative number of properties developed by property developers is also not readily available. The total number of residential properties whose title deeds were processed in 2019 was 92 514. The number of houses completed by the NHC in 2019 was approximately 1 459.[11]
[1] National Bureau of Statistics (2019). Household budget survey 2017/2018. https://www.nbs.go.tz/nbs/takwimu/hbs/2017_18_HBS_Key_Indicators_Report_Engl.pdf (Accessed 4 August 2020), Pg. 16.
[2] National Bureau of Statistics (2019). Household budget survey 2017/2018. https://www.nbs.go.tz/nbs/takwimu/hbs/2017_18_HBS_Key_Indicators_Report_Engl.pdf (Accessed 4 August 2020), Pgs. 17-19.
[3] National Bureau of Statistics (2019). Household budget survey 2017/2018. https://www.nbs.go.tz/nbs/takwimu/hbs/2017_18_HBS_Key_Indicators_Report_Engl.pdf (Accessed 4 August 2020), Pgs. 19-25,
[4] National Bureau of Statistics (2019). Tanzania in Figures 2019. https://www.nbs.go.tz/nbs/takwimu/references/Tanzania_in_Figures_2019.pdf (Accessed 1 August 2020). Pg. 76.
[5] Ministry of Lands, Housing and Human Settlement. Departments. https://www.lands.go.tz/pages/departments (Accessed 18 August 2020).
[6] National Housing Corporation (1990). The National Housing Corporation Act. https://www.lands.go.tz/uploads/documents/en/1456465292-The%20National%20Housing%20Corporation%20Act.%20Cap%20295.pdf (Accessed 8 August 2020). Pgs. 4-5.
[7] National Housing Corporation. Payment Options. https://www.nhc.co.tz/# (Accessed 9 September 2020).
[8] Ministry of Finance and Planning (2016). National Five Year Development Plan 2016/17-2020/21. https://mof.go.tz/mofdocs/msemaji/Five%202016_17_2020_21.pdf (Accessed 31 August 2020). Pgs. 188-191.
[9] Ministry of Lands, Housing and Human Settlement. About Us – Functions. https://www.lands.go.tz/ (Accessed 8 August 2020),
[10] National Housing Corporation. Projects. http://www.nhc.co.tz/en/nhcprojects (Accessed 10 August 2020).
[11] Wizara ya Fedha na Mipango (2020). Hali ya Uchumi wa Taifa Katika Mwaka wa 2019. https://www.mof.go.tz/docs/KITABU%20CHA%20HALI%20YA%20UCHUMI%20WA%20TAIFA%20MWAKA%202019.pdf (Accessed 2 August 2020). Pg. 207.
Property markets
The real estate sector grew by 4.5 percent in 2019 compared to 4.4 in 2018.[1] The sector faces various key housing issues including containing the pressure of rapid urbanisation, which increased the demand for housing and led to a housing deficit due to inelastic housing supply. This has been exacerbated by outdated master plans, unplanned settlements, land conflicts, poor infrastructure limiting mobility, and poor supply of housing amenities such as water, sanitation and energy services.[2] Some of the key industry bodies for developers are the Association of Citizen Contractors Tanzania and the Association of Real Estate Professionals in Tanzania, which was the Tanzania Institution of Valuers and Estate Agents until 2019.
Property markets in urban areas are dominated by the private sector, which has market share of over 75 percent. The government participates in property development mainly through the NHC or Tanzania Building Agency (TBA), especially in providing social housing, which may be considered risky by the private sector.
All land in Tanzania is public land whether granted, customary or unoccupied. Tanzania has a central lands title deeds registry, but the level of automation is low. The country is in the process of implementing an integrated land management information system to support digitised land tenure and title system. The country registered and issued titles to 47 948 parcels of land in 2019 compared to 31 254 in 2015, 33 257 in 2016, 21 743 in 2017 and 41 522 in 2018.29 It takes approximately 67 days to register property in the country and the registry exists in paper form.[3] However, there are plans to transition the paper-based registry into an automated system.
[1] Bank of Tanzania (2020). Monetary Policy Statement. 15 June 2020. https://www.bot.go.tz/Publications/Regular/Monetary%20Policy%20Statement/en/2020061515311396.pdf (Accessed 15 August 2020). Pg. 11.
[2] Ministry of Finance and Planning (2016). National Five-Year Development Plan 2016/17-2020/21. https://www.tralac.org/images/docs/9910/tanzania-national-five-year-development-plan-2016-2021.pdf (Accessed 3 August 2020). Pgs. 188-195
[3] World Bank (2020). Doing Business 2020. Economy Profile Tanzania. https://www.doingbusiness.org/content/dam/doingBusiness/country/t/tanzania/TZA.pdf (Accessed 10 august 2020). Pgs. 4 and 28.
Policy and regulation
There are distinct but mutual legal, policy and regulatory frameworks for housing and housing finance in Tanzania. The national land policy regulates land access rights, land tenure and administration, surveying and mapping, and urban and rural land use planning.[1] The national human settlement and development policy seeks to promote the provision of adequate and affordable shelter by making serviced land available for shelter and human settlement development, providing infrastructure and social services, promoting balanced development, and building the technical, managerial and financial capacities of the sector, among other objectives.[2]
The financial sector is regulated and developed by various policies including the Banking and Financial Institutions Act 2006, the Mortgage Refinance Company Regulations 2011 and the Microfinance Act 2018. A new impetus for finance sector legislation relevant to the housing sector can be traced to the Mortgage Finance Company Regulations, 2011 and 2015. Some recent policy developments seeking to promote industry discipline, stability, access and development include the Microfinance Community Microfinance Groups Regulations 2019, the Microfinance Savings and Credit Cooperative Societies Regulations 2019, and the Microfinance (Non-Deposit Taking Microfinance Service Providers) Regulations 2019.
Some upcoming policy developments include real estate bills[3] and the national land policy,[4] which are at different stages of development and processing. The country is developing a new housing policy which intends to review the real estate regulatory environment, the National Human Settlements Development Policy of 2000 and the Land Use Planning Act No. 6 of 2007. The National Land Policy of 1997 is under review to provide more impetus in addressing land disputes, surveying and mapping, titling of land, security of land tenure, payment of compensation for land acquired by the state, promoting investment, and ensuring equitable access to land. Further government initiatives are in the medium-term plan 2017-2021, which includes plans to establish and capacitate housing cooperatives, prepare housing standards and guidelines, establish a housing information centre, create public awareness about the construction of decent and affordable houses, promote appropriate technology for affordable housing, regularise 1.2 million houses in unplanned settlements, and to prepare 20 Master Plans.[5]
[1] United Republic of Tanzania (1997). National Land Policy Second Edition 1997. https://www.tanzania.go.tz/egov_uploads/documents/nationallandpolicy_sw.pdf (Accessed 17 August 2020). Pgs. 9-34.
[2] United Republic of Tanzania (2000). National Human Settlements Development Policy. January 2000. http://www.tzonline.org/pdf/nationalhumansettlements.pdf (Accessed 17 August 2020). Pgs. 21-22
[3] Citizen Magazine (2017). Two draft bills for debate to regulate real estate industry. 2 February 2017. https://www.thecitizen.co.tz/magazine/Two-draft-bills-for-debate-to-regulate-real-estate-industry/1840564-3806326-w459pu/index.html . (Accessed 10 August 2020).
[4] Nyaruhuma, A. (2016). Draft National Land Policy, 2016. Ministry of Lands Housing and Human Settlements Development. http://www.tfcg.org/wp-content/uploads/2018/06/TTCS-2016-Presentation-4-Policy-Development-in-the-Land-Sector-by-Dr-Nyaruhuma-MLHSD.pdf (Accessed 20 August 2020). Pg. 3
[5] Ministry of Finance and Planning (2018). Implementation Strategy for the National Five-Year Development Plan 2016/17 – 2020/21. http://extwprlegs1.fao.org/docs/pdf/tan166449.pdf (Accessed 11 August 2020). Pg. 223.
Opportunities
According to the Tanzania Investment Centre, there is an acute shortage of accommodation in urban and cosmopolitan areas, mainly due to the rapid growth of economic projects and the population, which has increased demand for residential and commercial properties. The NHC, the TBA and other private firms require synergies that can support property development. Opportunities available include the development and management of housing estates, residential apartments, office buildings, conference and banquet facilities, shopping malls, hotels, and the provision of home financing.
Areas that need strengthening include housing finance and technological progress. In addition, there is potential for collaborating with the government to delivery social housing in informal settlements through slum upgrading programmes such as the Community Infrastructure Upgrading Programme.[1]
[1] UN-Habitat, Dar es Salaam Local Authorities and Cities alliance (2010). Citywide Action Plan for Upgrading Unplanned and Unserviced Settlements in Dar es Salaam. https://unhabitat.org/sites/default/files/download-manager-files/Citywide%20Action%20Plan%20for%20Upgrading%20Unplanned%20and%20Unserviced%20Settlements%20in%20Dar%20es%20Salaam.pdf (Accessed 19 August 2020). Pgs. 55-68.
Availability of data on housing finance
Data is collected by various government and non-government actors.
The National Bureau of Statistics and the BOT are the main sources of quality data on housing and housing finance. The data is published through printed media and not readily available for download online. The data includes household data, financial sector and mortgage market data, real estate development data, labour market data and macroeconomic data, among others.
The Tanzania Building Agency, the National Construction Commission, the National Housing Corporation, the Tanzania Investment Centre, the Ministry of Lands, the Tanzania Bankers Association and the Tanzania Mortgage Refinancing Company play key roles in data collection and management. They have different types of data and information that is important for housing and housing finance sector players.
There is, however, a need to enhance the range of data, especially the indicators that serve different sector players in the entire value chain as well as from the demand and supply sides, such as availability of data on costs, market demand and financing deficits
COVID-19 response
- The country did not impose a lockdown but it shut down learning institutions, banned public gatherings, imposed mandatory self-quarantine for travellers from risk areas, banned travel by government officials, and limited travel by citizens to other countries.
- The BOT reduced the discount interest rate by two percentage points as well as the cash reserve ratio for banks by the same margin. The government of Tanzania, through the BOT, authorised commercial banks to renegotiate loans with customers. This could include increasing repayment periods and reducing instalment amounts. The daily mobile wallet transaction limit to customers was expanded from TSH3 million (US$1 294) to TSH5 million (US$2 156) and the daily balance from TSh5 million (US$2 156) to TSh10 million (US$4313).
- A moratorium on evictions was put in place.
- The government responded to the impact COVID-19 had on informal settlement through public awareness campaigns.
Websites
Tanzania Mortgage Refinance Company htpps://www.tmrc.co.tz/
NMB Plc Tanzania https://www.nmbbank.co.tz/
Association of Real Estate Professional of Tanzania https://www.arepta.org/
Association of Citizen Contractors Tanzania https://acct.co.tz/
B.R Real Estate Developers Ltd https://brrealestate.co.tz/
Bank of Tanzania https://www.bot.go.tz/
Comfort Zone Real Estate https://comfortzonerealestate.co.tz/
JR Real Estate Dealers Tanzania http://www.jrrealestatedealers.co.tz/
Knight Frank Tanzania https://www.knightfrank.co.tz/
Kupatana https://kupatana.com/
Ministry of Finance and Planning https://www.mof.go.tz/
Ministry of Lands, Housing and Human Settlements Development https://www.lands.go.tz/
Mwanga Hakika Microfinance Bank Limited https://mhbbank.co.tz/
My Dalali Real Estate http://www.mydalali.co.tz/
National Construction Council https://www.ncc.go.tz/
National Housing Corporation https://www.nhc.co.tz/
Remax Tanzania http://www.remax.co.tz/
Seven Estate Agent https://www.sevenestate.co.tz/
Tanganyika Estate Agents https://tzagents.com/
Tanzania Bankers Association https://tanzaniabankers.org/
Tanzania National Bureau of Statistics https://www.nbs.go.tz/
Zoom Tanzania https://www.zoomtanzania.com/
