BoA mobilises €1.3 million to ease housing shortage in Tanzania
Bank of Africa (BOA) Tanzania has set aside $1.8 million (€1.3 million) in mortgage loans to ease the housing shortage, an official has revealed.Bank of Africa (BOA) Tanzania has set aside $1.8 million (€1.3 million) in mortgage loans to ease the housing shortage, an official has revealed.
The bank's relationship manager Patricia Nguma said last week that borrowers do not have to start repayment until they have settled into their homes, East African Business Week reports.
Having recently entered a partnership with Tanzania Mortgage Refinance Company (TMRC), the BOA is looking to increase its mortgage portfolio and gain access to long term funds that will enable commercial banks to increase their mortgage lending ability.
Tanzania has a weak housing finance and property market and nearly the entire urban housing stock has been built by individual households, according to the report "Overview of the housing
finance sector in Tanzania (2010)", commissioned by the FinMark Trust.
Although in demand, housing microfinance and mortgage finance are yet to take root, as their development is being held back by a variety of problems, including legal bottlenecks, poor
financial literacy and a financial sector that is wary of the risks of lending for housing.