Dar es Salaam-In a significant development for Tanzania's mortgage financing sector, the Tanzania Mortgage Refinancing Company (TMRC) welcomed a new investor, Mwanga Hakika Bank, injecting fresh capital and enthusiasm into the housing market. Mwanga Hakika Bank made a substantial investment of 500 million Tanzanian shillings, securing a stake equivalent to 308,261 shares in TMRC. The move marks Mwanga Hakika Bank as the 18th shareholder in TMRC, and their investment so far totals 26 billion Tanzanian shillings.
TMRC's Chief Executive Officer, Mr. Oscar Mgaya, expressed his enthusiasm during a ceremony to welcome the new investor. He highlighted the importance of the occasion, stating, “This is a remarkable day for TMRC as we add another investor and shareholder.”
TMRC, comprising notable shareholders such as CRDB Bank, NMB Bank, NBC Bank, and others, plays a pivotal role in supporting financial institutions by enabling them to provide long-term mortgage loans to customers, thereby fostering the development of improved housing infrastructure in the country. The company has already facilitated mortgage refinancing for 31 banks, allowing them to offer affordable mortgage loans to their customers.
As of this year, TMRC's outstanding mortgage debts in banks have surged to 584.5 billion Tanzanian shillings, marking a significant increase from 76 billion Tanzanian shillings in 2011. TMRC's involvement has been instrumental in extending the loan repayment period, enhancing affordability for Tanzanian citizens.
Mwanga Hakika Bank's Managing Director, Jagjit Singh, expressed the bank's excitement about becoming part of TMRC, stating that this development is significant for the young commercial bank, which was established just a year ago. He emphasized that being a shareholder was a significant step, and the bank is now looking forward to providing mortgage loans in the near future.
Founded in 2020 through the merger of Mwanga Community Bank, Hakika Microfinance Bank, and EFC Tanzania Microfinance Bank, Mwanga Hakika Bank currently provides a range of financial services to individuals, micro, small, and medium enterprises (MSMEs), as well as corporate clients. In the third quarter of this year, the bank posted a pre-tax profit of 7.0 billion Tanzanian shillings, with a year-end profit projection of 9.0 billion Tanzanian shillings.
Tanzania's mortgage market has witnessed notable growth, registering a 6.0% increase in the value of residential mortgages in this year's second quarter compared to the 3.6% recorded in the previous quarter. The market has experienced a robust 15% year-on-year growth, surging from 509.99 billion Tanzanian shillings in last year's Q2 to 584.59 billion Tanzanian shillings in this year's Q2.