The International Finance Corporation (IFC) is confirming an investment of up to $5.75 million in Tanzania Mortgage Refinance Company (TMRC), an institution specialized in granting mortgage loans.

The company will use the resources to increase its long-term financing to Tanzanian financial institutions and banks. The financing includes the local currency equivalent of up to $1.5 million in equity and $4.25 million for a medium-term bond issue, spread over several tranches.

“IFC is committed to developing the property market in Africa by providing long-term, local-currency financing. By investing in the Tanzania Mortgage Refinancing Company, we hope to boost affordable mortgage lending to create more affordable housing for Tanzanian families,”  said Jumoke Jagun-Dokunmu (pictured), the IFC Regional Director for East Africa.

According to Oscar Mgaya, TMRC’s CEO, “IFC’s investment will help TMRC attract new investors, meaning we can obtain longer-term, more diverse funding and sustainable pricing.”

Tanzania's mortgage market grew by 76 billion shillings in 2018, according to TMRC's annual report for the fiscal year ending December 31, 2018.

Chamberline Moko