Tanzania Real Estate Sector Gets $60M Push

Tanzania Real Estate Sector Gets $60M Push

From All Africa

The International Development Association (IDA), the soft loan agency of the World Bank Group is providing Tanzania with $60 million to fund affordable housing.

Philippe Dongier, the World Bank Country Director for Tanzania, Burundi and Uganda said last week, “Tanzania’s rapid urbanization in recent years has underscored the urgency to improve access to finance for affordable housing.

“Developing mortgage markets will make it possible for ordinary families (including those that have low incomes) to invest in their own housing as opposed to renting or building slowly over many years as and when they set aside some savings.

The mortgage market will go a long way in addressing the constraints to accessing housing credit which many working urban residents face, and it will further expand the construction industry and associated jobs.”

The new cash is part of the ongoing 2010 Housing Finance Project (HFP) and brings the total IDA investment in the project to $100 million. The HFP has helped set up the Tanzania Mortgage Refinancing Company (TMRC). which is playing a key role in developing the mortgage market.

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