Tanzania Expands Housing Finance for Informal Workers
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Millions of Tanzanians excluded from traditional mortgages could soon gain access to home financing. New housing microfinance products are targeting low-income and informal sector households with more flexible loan options.
Tanzania Mortgage Refinance Company (TMRC) and Habitat for Humanity have launched new housing microfinance products aimed at expanding access to home financing for low-income households and informal sector workers. The products allow banks and microfinance institutions to offer smaller, more flexible housing loans for home construction, expansion, and improvements.
The initiative follows a pilot programme with selected financial institutions and received regulatory support from the Bank of Tanzania, enabling broader refinancing of housing microfinance portfolios. The move addresses a major gap in Tanzania’s housing market, where many households cannot qualify for conventional mortgages despite growing housing demand.
As Tanzania’s urban population expands, housing microfinance is expected to play an increasingly important role in closing the country’s affordable housing gap.
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