Tanzania backs TCB Bank tie-up to let homebuilders buy plots in instalments
Written on
The deputy finance minister has endorsed a partnership between TCB Bank and developer Makazi Solution that will let Tanzanians acquire surveyed plots on credit instead of paying the full price upfront.
Tanzania's government has thrown its weight behind a partnership between TCB Bank and developer Makazi Solution Limited that will allow citizens to buy developed residential plots without paying the entire cost upfront. Speaking in Dar es Salaam, the Deputy Minister for Finance, Engineer Msham Munde, commended the two parties and described the initiative as an important opportunity for citizens to access land developed in line with proper planning and infrastructure requirements.
Munde said the arrangement aligns with the government's commitment to strengthening private-sector participation in development projects, particularly housing. "The government continues to promote access to decent housing, given the challenges citizens face when building in unplanned areas and issues related to land use and ownership," he said, pledging that the Ministry of Finance would keep working with the private sector on those challenges.
Makazi Solution director Suleiman Pazi said the company, which has more than 15 years of experience, faces significant costs in preparing and developing residential areas, making partnerships with financial institutions essential to improving access to plots. He said the agreement with TCB was a step towards a system in which buyers can pay for plots in instalments rather than in one lump sum.
Pazi said the company is promoting land investment opportunities in several areas, including Tanga, Pangani and Kipumbwi, where geographical advantages and anticipated infrastructure improvements offer development potential. He urged TCB to go beyond lending to plot buyers and consider financing the acquisition of land earmarked for planned residential development, arguing that this would cut land preparation costs and increase the supply of officially surveyed plots.
He added that developing planned residential areas could raise revenue for the government and local authorities through land taxes, building permits and other fees tied to formal land use, linking better access to housing with a broader public revenue base. Francis Kaaya, acting director of small and medium customer business at TCB, said the bank was ready to work with Makazi Solution to help citizens acquire land and achieve their housing aspirations, and encouraged interested buyers to visit TCB branches for information on services and financing options.
The partnership sets out a framework for cooperation between a private developer and a financial institution to widen land ownership and home construction. Both sides said they expect it to encourage planned residential development, reduce unplanned construction and help more Tanzanians own plots and build homes.