DAR ES SALAAM: The mortgage financing sector on Tuesday got a shot in the arm after Tanzania Mortgage Refinancing Company (TMRC) received a new investor—Mwanga Hakika Bank.
The bank invested 500m/- stake translating to 308,261 shares in the TMRC.
TMRC Chief Executive Officer, Mr Oscar Mgaya said Mwanga Hakika has become 18th shareholder of the company and they have so far invested 26bn/-.
“This is a remarkable day for the TMRC as we add another investor and shareholder…,” Mr Mgaya said during a soft ceremony to welcome the new member.
Other TMRC shareholders include CRDB Bank, NMB Bank, NBC Bank, African Banking Corporation Tanzania, DCB Bank, Exim Bank, Azania Bank, I&M Bank, TIB Development Bank, People’s Bank of Zanzibar, Mkombozi Bank and National Housing Corporation.
TMRC has the role of lending financial institutions so that they offer long-term mortgage loans to their customers in a bid to develop better housing in the country.
TMRC has so far given mortgage refinancing to 31 banks that offer mortgage loans to customers at an affordable rate.
Currently, the TMRC mortgage outstanding debts in banks have reached 584.5bn/- by this year, up from 76bn/- in 2011.
The refinancing company’s role in mortgage loans has been critical because the loan repayment period has been extended, hence bringing affordability to Tanzanians.
Mwanga Hakika Managing Director Jagjit Singh said they are the youngest commercial bank in the country that came into being a year ago and being part of the TMRC “is something big.”
“…Being a shareholder is a one step, but the bank also envisions starting offering mortgage loans soon,” Mr Singh said during the event.
Mwanga Hakika came into existence in 2020 as a result of merging three entities of Mwanga Community Bank, Hakika Microfinance Bank and EFC Tanzania Microfinance Bank.
The lender, currently, offers financial services to Individuals, Micro, Small and Medium Enterprises (MSME), as well as Corporate Clients
Mwanga Hakika posted a pre-tax profit of 7.0bn/- in quarter three of this year and is projected to make a profit of 9.0bn/- at the end of the year.
Generally, the country mortgage market registered a 6.0 per cent growth in the value of residential mortgages in this year’s quarter two compared to the 3.6 per cent registered in the previous quarter.
The market registered a 15 per cent year-on-year growth from 509.99bn/- in last year’s Q2 to 584.59bn/- in this year Q2.