In a significant step forward in their collaborative efforts to promote Housing Microfinance (HMF) in Tanzania, the Tanzania Mortgage Refinance Company (TMRC) and Habitat for Humanity International (HFHI) have signed an addendum to their 2022 Memorandum of Understanding (MoU). This new agreement seeks to enhance TMRC's capabilities in unlocking the potential of HMF while extending support in fostering commercial relationships with low-income consumers, ultimately increasing their access to affordable and high-quality housing solutions.
Oscar Mgaya, the Executive Director of TMRC, emphasized the importance of this collaboration in advancing housing finance for low-income families in Tanzania. He highlighted how Habitat for Humanity's involvement builds upon the groundwork laid by the World Bank and International Finance Corporation, all in pursuit of expanding access to housing microfinance across the country.
"Over the past year of cooperation under the agreement, the partners commissioned a sector study to understand the barriers low-income households face in accessing affordable housing finance in the country and build a business case on the potential of rolling out HMF in Tanzania," Mgaya stated.
This comprehensive study conducted by the partnership assessed the current landscape, needs, and potential for HMF in Tanzania. It also constructed a compelling case for the viability of HMF solutions in the Tanzanian context by benchmarking against markets with established HMF frameworks and identifying key demand-side requirements for HMF.
In their unwavering commitment to supporting TMRC's mission, Habitat for Humanity International has allocated additional resources as part of the addendum to the MoU. These resources will be instrumental in exploring and piloting HMF solutions for financial service providers through TMRC.
The signing ceremony for the addendum to the MoU brought together a diverse group of stakeholders, including representatives from government bodies, financial institutions, and housing sectors. This assembly of over 30 experts and influencers convened to review, respond to, and discuss the next steps based on the insights generated by the study and recommendations provided by Altair's team of housing finance experts.
The collaboration between TMRC and Habitat for Humanity International continues to demonstrate a shared commitment to addressing housing challenges in Tanzania and facilitating access to affordable and sustainable housing solutions for the nation's low-income population.
As this partnership evolves and expands, it holds the promise of transforming the housing landscape in Tanzania, improving living conditions, and enhancing the quality of life for many families.