(Ecofin Agency) - 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.