TANZANIA: FRESH impetus for the country’s mortgage refinance, with Absa Bank Tanzania becoming a new shareholder in the Tanzania Mortgage Refinance Company (TMRC), investing 1.6bn/-.
Therefore, Absa becomes the 19th shareholder of the TMRC, with six per cent stake, equivalent to about one million shares.
TMRC Chief Executive Officer Oscar Mgaya commended the bank since it takes a long process to arrive at such a decision, including seeking approval from the board and other stakeholders.
“We are pleased to see more banks join the TMRC, something which expands the scope of mortgage loans,” he said, during a ceremony to welcome the bank in Dar es Salaam yesterday.
The TMRC is the mortgage liquidity facility operating in the country. It provides long-term funding to financial institutions for mortgage lending to some 31 financial institutions.
He said with Absa joining the TMRC, the company now records 27.5bn/- total investment from 19 shareholders.
“We call upon other financial institutions to join us to ease accessibility of mortgage loans in the country,” Mr Mgaya said.
Absa Bank Tanzania Chief Executive Officer Obedi Laiser said they joined late but with a bang with 1.6bn/- investment and may invest more.
“We are very happy to be new shareholders today…it will be a memorable day for us. It’s better late than never…,” Mr Laiser said.
He noted that the aim is to boost the mortgage loans to Tanzanians so that they access affordable and long-term mortgage loans.
“This is to support the government’s efforts to ensure Tanzanians acquire better houses,” he added:
“This arrangement gives us access to an enhanced limit on long-term funding (from 5bn/- to 32bn/-) which will all be directed towards mortgage lending to our customers to satisfy the current market appetite for housing loans and address the housing challenge faced by many Tanzanians today.”