THE Tanzania Mortgage Refinance Company (TMRC) and Habitat for Humanity International (HFHI) have signed an addendum to a memorandum of understanding signed last August 2022.
The MoU centred on promoting the ability of company in unpacking the potential of Housing Microfinance (HMF) in the country.
According to TMRC’s Executive Director Oscar Mgaya, the agreement which was signed recently also meant to support the TMRC to develop and expand its commercial relationships with low-income consumers as a means of increasing their access to affordable and quality housing solutions.
Building on the foundations of housing finance set up by the World Bank and International Finance Corporation (IFC) for the promotion of housing finance for low-income families through TMRC, Habitat for Humanity’s support aims to further expand access to housing microfinance in the country through this partnership.
Over the past year of cooperation under the agreement, the partners commissioned a sector study to understand the barriers low-income households face in accessing affordable housing finance in the country and build a business case on the potential of rolling out HMF in Tanzania.
The study identified the current situation, needs and potential for HMF in the country; built a case for HMF potential; benchmarked other markets with matured HMF solutions and the demand side needs for HMF.
Mr Mgaya pointed out that as an ongoing support to TMRC through the addendum of the MoU, Habitat for Humanity International has committed additional resources towards exploring and piloting a HMF solution for financial service providers through TMRC.
The signing ceremony brought together a group of over 30 government, financial and housing stakeholders to review, respond to and discuss the way forward based on evidence the report generated and recommendations from Altair’s team of housing finance experts.
Representatives from the Bank of Tanzania (BoT), Tanzania Association of Microfinance Institutions, Tanzania Bankers Association, Ministry of Finance, Tanzania Cooperative Development Commission and Tanzania’s Ministry of Lands, Housing and Human Settlement Development among others attended and engaged in the discussion of findings and identifying models and approaches in the market that have the potential to transform the availability of affordable housing in the country.
The final report will be released in the upcoming weeks.