The National Housing Corporation (NHC), a government entity and the largest real estate developer in Tanzania, has announced its intention to list its bond on the Dar es Salaam Stock Exchange for the first time.
This decision comes as the company reports a significant increase in both revenue and profit.
The financial year 2021/22 saw the company’s revenue jump to TZS 257.5 billion, a +78.3% increase from the TZS 144.4 billion reported in 2020/21.
Furthermore, NHC’s profit surged by +91.5%, reaching TZS 60.7 billion, up from the previous year’s TZS 31.7 billion.
In a recent meeting with media editors, NHC Director General Hamad Abdallah NHC stated: “Within a year, we plan to issue the bond on the Dar es Salaam Stock Exchange, which will be named the Nyumbani Bond.”
Abdallah further elaborated on the company’s growth, attributing the rise in revenue to increased income from rented properties and the sale of residential and commercial buildings.
The sales of these assets quadrupled, bringing in TZS 121.95 billion in 2021/22, a significant leap from the TZS 29.3 billion in 2020/21.
Tanzania’s demand for housing and housing loans is high and challenged by the limited supply of affordable housing and high-interest rates.
Affordable housing demand is estimated at 200,000 housing units per annum with an existing housing deficit of 3 million housing units.