By Business Insider Reporter
The Tanzania Mortgage Refinance Company (TMRC) has launched a TSh30 billion micro-mortgage facility aimed at widening access to affordable housing finance and unlocking home ownership for low-income Tanzanians.
The new facility, unveiled in Dar es Salaam, is designed to provide liquidity to financial institutions so they can extend small housing loans to underserved segments of the population – particularly those in the informal sector who have historically struggled to meet conventional lending requirements.
Speaking at the launch on behalf of the Minister for Finance, Deputy Minister for Finance Mshamu Ali Munde said the government will continue working closely with financial institutions, including TMRC, to ensure the availability of affordable funding within the financial system.
“The government supports initiatives that address housing challenges, especially for low-income citizens who face significant barriers in accessing formal mortgage finance due to lack of collateral or irregular incomes,” he said.
The programme has been developed in partnership with Habitat for Humanity International and seeks to address a critical gap in Tanzania’s housing finance ecosystem.
According to research conducted by the institutions, only about three per cent of Tanzanians currently have access to mortgage financing, largely because most potential borrowers cannot meet existing lending conditions.
TMRC Managing Director Elibariki Ndossi said the primary objective of the micro-mortgage product is to enable more Tanzanians to secure decent housing while easing liquidity constraints faced by lending institutions.
Daniel Mhina, Director of Housing Finance at Habitat for Humanity Tanzania, noted that the structure of the facility is tailored to low-income earners and does not require traditional fixed collateral, a move expected to significantly broaden eligibility.
The initiative aligns with the government’s broader housing agenda, which seeks to increase the supply of affordable and decent housing while strengthening financial inclusion.
By injecting TSh30 billion into the housing finance value chain, the facility is expected to stimulate lending activity and gradually deepen Tanzania’s mortgage market.
Since its establishment in 2010, TMRC has played a pivotal role in expanding mortgage financing in the country. The value of mortgage loans facilitated through its refinancing model has grown from TSh76.7 billion at inception to TSh745 billion in 2025, underscoring the steady development of Tanzania’s housing finance sector.
However, industry analysts note that despite this growth, access remains limited relative to demand, particularly among low- and middle-income households.
The introduction of micro-mortgages represents a strategic shift towards inclusivity – targeting borrowers previously excluded from formal housing finance. If effectively implemented, the new facility could mark a turning point in Tanzania’s housing market, bridging the gap between formal finance and the realities of low-income earners, while reinforcing TMRC’s role as a catalyst in deepening long-term housing finance.
