In an effort to fulfill its goal of providing full suite funding for new affordable housing projects across Africa, Shelter Afrique (SHAF) has invested $1 million in Tanzania Mortgage Refinance Company (TMRC).
The new equity investment is expected to give the investor a 11.06 percent stake in TMRC and consequently assist in making home ownership more affordable to more Tanzanians.
Speaking at the loan signing ceremony, according to a press release by it Nigerian representative, James Mugerwa, managing director, Shelter Afrique, said: “We are happy to have such an able partner in TMRC and we are sure that our equity participation will go some way in making housing in Tanzania more affordable and more accessible to all; especially during a period that we note the Tanzania mortgage market is growing.”
Mugerwa said while the pan-African finance institution had successfully built an extensive portfolio in Tanzania, it was currently considering a pipeline of $30 million.
In his remark, Oscar Mgaya, CEO of TMRC, said he was elated to have participated in the occasion that marked a new era in the country’s housing market, saying “I am very happy to participate in this great occasion to celebrate another milestone for TMRC and Shelter Afrique who is our newest shareholder. I would like to thank Shelter Afrique’s CEO and his team for the partnership that we have achieved together.”
He further explained that the primary role of TMRC as a mortgage liquidity facility was to elongate mortgage tenors and therefore making mortgage loans more affordable.
“I am happy to report that the existence of TMRC has resulted into availability of longer tenor mortgage loans,” he enthused, adding that the availability of mortgages will have a very positive impact on the availability of housing for more Tanzanians.
The investment will see Shelter Afrique become the 14th shareholder of the TMRC.
Shelter Afrique is the only pan-African finance institution that exclusively supports the development of the housing and real estate sector in Africa. The institution is a partnership of 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.
It strives in building strategic partnerships and offers a host of products and related services to support the efficient delivery of affordable housing and commercial real estate.
ODINAKA MBONU
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