The government of Tanzania is set to
construct 30,000 affordable houses across the country as part of
implementation of the election manifesto of the ruling party, Chama Cha
Mapinduzi.
Minister for Lands, Housing and Human Settlements
Development, William Lukuvi confirmed the reports and said the houses will be
constructed by state-owned National Housing Corporation
(NHC).
“The intention of the government is to provide
affordable housing for its people. Construction of the houses will go in
tandem with the improvement of infrastructure in the areas, including roads,
schools and health centers,” said Lukuvi.
Tanzania still suffers from a shortage of good
quality and affordable housing. Current housing deficit is estimated at three
million housing units valued at US $180bn coupled with a 200 000 unit annual
demand with a projected combined cost of US $12bn.
The country’s mortgage market is among the smallest
in East African region, despite it recording an annual growth rate in
mortgage loan balances of 6% between March 2017 and March 2018.
According to a 2018 Cost of Living study by Numbeo,
a Dar es Salaam residents pay the largest chunk of their earnings (about
31%) on house rents than on any other basic commodity that is needed to
survive.
The study also states that at least 27.6% of an average Tanzanian’s earnings is spent on rent – leaving the remaining 72.4% for other basic needs. https://constructionreviewonline.com/2019/03/tanzania-to-construct-30000-affordable-houses/
