The Tanzania Mortgage Refinance Company (TMRC) has dispersed TSH 16 billion to member banks for home mortgage loans.
The private institution was formed as a joint effort between the government and World Bank with the objective of making home construction and ownership more accessible to Tanzanians.
TMRC is one component of a three part plan known as the Housing Finance Project, which makes mortgages more easily available: the remaining components are a housing microfinance scheme, and the expansion of affordable building supplies.
Currently TMRC is using a World Bank loan to refinance its member banks, and it plans to issue corporate bonds to raise funds to lend to the banks as well.
Similar institutions have proved successful in advancing financial development in countries such as Egypt and Malaysia.
Currently eleven Tanzanian member banks are shareholders in the company, and Chief Executive Officer, Ocsar Mgaya, has stated that TMRC is an “‘open club’ with no restrictions on entry for [new] eligible investors” to join.