The Tanzania Mortgage Refinance Company (TMRC) recently signed a memorandum of understanding with US-based NGO Habitat for Humanity International to “support lower-income Tanzanians and those working in the informal sector to more easily purchase, build or upgrade their homes.” With technical assistance from Habitat for Humanity, TMRC will perform a market study and design housing microfinance products that it will fund for distribution via retail lenders. The CEO of TMRC, Oscar Mgaya, said “As a wholesale lender, we are eager to build a case for housing microfinance in the country….”
Founded in 2010, TMRC funds lenders on a “long-term” basis to boost the availability of mortgage finance. As of December 2021, its balance sheet stood at TZS 198 billion (USD 76.4 million) with outstanding loans of TZS 129 billion (USD 55.3 million). Its partner lenders include Azania Bank, CDRB Bank and Stanbic Bank Tanzania.
The mission of Habitat for Humanity is to provide poor people with clean, safe and affordable places to live. Since its inception in 1976, the NGO has engaged the services of homeowners and volunteers to build houses under the supervision of trained builders. In the US, the organization also offers no-interest mortgage loans directly to low-income families, and in other countries it partners with microfinance institutions to distribute and service home loans. Habitat for Humanity operates in all 50 US states and 100 other countries. As of 2021, the NGO reported total assets of USD 476 million.
By Nithin Naren, Research Associate
Sources and Additional Resources
IPP Media article
https://www.ippmedia.com/en/business/tmrc-signs-mou-habitat-boost-housing-microfinance
TMRC financial statements
https://www.tmrc.co.tz/resources/category/publications-and-reports
Habitat for Humanity financial statements
https://www.habitat.org/sites/default/files/documents/2021-Habitat-for-Humanity-International-CFS.pdf
Habitat for Humanity homepage
https://www.habitat.org
Previous MicroCapital article on Habitat for Humanity
https://www.microcapital.org/habitat-for-humanity-international-mastercard-foundation-partner-to-provide-microfinance-housing-products-to-low-income-kenyans/
Previous MicroCapital article on TMRC
https://www.microcapital.org/microcapital-brief-tanzania-mortgage-refinance-company-trmc-sells-3-8m-in-bonds-to-boost-access-to-home-ownership/
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