Tanzanian mortgage market to shrink

Tanzania has the second highest mortgage interest rate in the region at 18 per cent while Uganda is leading with 19 per cent. FOTOSEARCH

The Tanzania mortgage market is expected to shrink this year due to a credit crunch, high interest rates and some banks, which had planned to offer this facility, pulling out of the market.

The banks include Meru Community Bank and Covenant Bank for Women, whose operations were shut down by the Bank of Tanzania this year due to inadequate capital.