Dar firm gets $40m to roll out mortgages

Mr Massawe said the project appraisal document prepared by the World Bank, BoT and Housing Ministry, puts the initial minimum capital for the mortgage at $4.4 million.

The three banks have raised about 50 per cent of this amount, while more banks are expected to join the board.

The Tanzania Mortgage Refinancing Company will get a further $30 million from BoT and will be able to access credits from multilateral lenders.

The central bank is now in the process of forming a legal regulatory framework for mortgage financing.

It is estimated that mortgage loans outstanding in Tanzania currently amount to around $100 million, split between around 2,000 loans, making the average loan size around $50,000.

This amount is growing relatively rapidly as new entrants come into the market.