The government has underscored the importance of involving financial institutions in the housing development process as well as enabling consumers to access houses through loans.
Minister for Lands, Housing and Human Settlement Development, Anna Tibaijuka said this in Dar es Salaam yesterday during the signing of a 165bn/- mortgage financing agreement between seven banks, two financial institutions and National Housing Corporation (NHC) for construction of houses.
“Today we can witness a positive response from seven banks which have agreed to issue mortgage loans to potential buyers of the houses to be built by NHC…buyers are eagerly waiting for the houses”, she said.
She said NHC has started mobilising funds from various financial institutions in order to deliver the needed houses.
Prof Tibaijuka said that NHC plans to build 15,000 houses by 2015, an average of 3,000 houses per year, which requires a lot of money to accomplish.
She said the aim of the government is ensure that Tanzanians live in good houses, which she said can be made possible through cooperation with banks.
For his part, NHC Director General, Nehemia Mchechu said the funds will be used to construct houses and start implementation of some big projects such as the Kigamboni satellite city, Arusha, Dodoma, Kigoma and Temeke in Dar es Salaam.
He said the government through the Ministry of Finance permitted NHC to borrow money from banks
within and outside the country for implementation of its strategic plan for 2010/11-2014/15.
Mchechu said that in this fiscal year, NHC will embark on construction of low cost houses in different part of the country.
Chairman of the Tanzania Bankers Association, Lawrence Mafuru said by signing the agreement, the banks have demonstrated the confidence they have in NHC, adding that buyers have already started to ask for the houses.
James Cantamantu-Koomson, Managing Director, Ecobank Tanzania said his bank has started with a contribution of 2.1bn/-, but they are planning to double the amount in a few years to come.
“We are proud to be part of this project…houses are important for peoples development. We are engaged in similar projects in other African countries where we operate”, he noted.
The seven banks that have issued the mortgage loan are CRDB, ECO Bank, Tanzania Investment Bank (TIB), BancABC, NMB, Commercial Bank of Africa and Azania Bank. There are also two institutions namely Local Authority Pesnion Fund (LAPF) and Shelter Afrique.