World Bank promotes affordable housing in Tanzania’s cities
The World Bank is jumpstarting the mortgage market in Dar es Salaam and other Tanzanian cities in a bid to make housing more affordable. The bank has announced $60 million in new financing that brings its total investment to $100 million.
The additional funding is for the Housing Finance Project, an initiative launched in 2010. The project established the Tanzania Mortgage Refinancing Company, which is spearheading development of the nation’s mortgage market. The company provides mortgage lenders with “long-term funding” that spurs banks to offer mortgages, the World Bank says.
World Bank officials cite Tanzania’s rapid urbanization as the impetus. “Mortgage markets will make it possible for ordinary families, including those that have low incomes, to invest in their own housing,” Philippe Dongier, World Bank country director for Tanzania, Burundi and Uganda, says here.
That way, they can buy property instead of renting or taking “many years” to build homes, he adds. The Bank of Tanzania is participating in the finance project.