DOCSLIB.ORG

Financing Infrastructure in Tanzania

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Financing Infrastructure in Tanzania TOWARDS INDUSTRIALIZED ECONOMY: THE ROLE OF DFIs IN TANZANIA IN THE IMPLEMENTATION OF THE SECOND FIVE YEAR DEVELOPMENT PLAN. (FYDPII) Charles G Singili Ag. Managing Director TIB Development Bank 6 June 2017 Early Development Arena & the Notion of Development National Development Corporation was established in 1962 i. To catalyze economic development in all sectors of the economy; ii. NDC became a holding corporation under the Public Corporation Act 1969; iii. Had a broad mandate as a development and promotion institution to stimulate industrialization in partnership with private sector. Tanzania Investment Bank was established in 1970- i. To make available long and medium term finance for economic development ii. To provide technical assistance and advice for the purpose of promoting industrial development iii. To administer such funds as may from time to time be placed at the disposal of the Bank iv. To undertake such other activities as may be necessary or advantageous for the purpose of furthering the foregoing objects. Early Development Arena & the Notion of Development Tanzania Agricultural Development Bank was established in 2012 i. apex national-level bank with the key role of being a catalyst for delivery of short, medium and long- term credit facilities for development of agriculture in Tanzania ii. enshrined in the Vision 2025 to achieve food self-sufficiency and food security, economic development and poverty reduction Early Development Arena & the Notion of Development During establishment of the above SOEs “Economic Development” was defined as: i. The development of manufacturing, assembly and processing industries including industries engaged in the processing of products of agriculture, forestry or fishing; ii. The development of the engineering, construction, transport, tourist and mining industries; iii. The development of large-scale corporate agriculture, ranching, forestry and fishing. NOTE: This still holds. The Changed Arena… Up until early 80’s TIB enjoyed high success rate in establishing various industrial, infrastructural and agricultural projects NDCs glory came to an end in 1992 under the Public Corporation Act, 1992 as amended when Parastatal Sector Reform Commission was established (Privatization of SOEs kicked in. The Government privatized 196 entities) The History 9 000 2 400.00 2 300.00 2 200.00 6 000 2 100.00 2 000.00 1 900.00 3 000 1 800.00 1 700.00 1 600.00 - 1 500.00 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16p 1 400.00 1 300.00 (3 000) 1 200.00 1 100.00 USD/TZS USD '000' 1 000.00 (6 000) 900.00 800.00 700.00 (9 000) 600.00 500.00 400.00 (12 000) 300.00 200.00 100.00 (15 000) - Profit before tax USD/TZS rate The Transformation of TIB The Transformation of TIB NUTURING INDUSTRIALIZATION FOR ECONOMIC TRANSFORMATION AND HUMAN DEVELOPMENT 2015/16-2020/21 A SEMI- INDUSTRIALIZED MIDDLE INCOME COUNTRY BY 2025 The New TIB 1. Transformation of Tanzania Investment Bank Limited resulted into a two-tier Group of companies: I. TIB Development Bank Ltd II. TIB Corporate Bank Limited III. TIB Rasilimali Limited 2. Main focus of TIB Development Bank: i. Long & Medium term finance ii. Special Products: Financial Advisory and Managed Fund TIB, NDC & TADB Strategic Focus 1. Main focus is anchored on Tanzania Development Vision 2025 2. Translated in FYDPII (2015/16-2020/21) 3. Steered by Corporate Strategic Plans of each institution. 10 TIB Strategic Focus i. Infrastructure- Local and National Government; income generating projects ii. Industrialization- specifically in general manufacturing, Agro–processing, and mining iii. Services- Real Estate, Tourism sector iv. Oil and Gas 11 NDC Strategic Focus i. Heavy Industries – Chemical, Power Production, Iron & Steel (metallurgical) ii. Value Addition Industries - Agro Industries, Biological Industries, and Industrial Parks iii. Research and Development 12 TADB-Strategic focus • Promoting financing of entire agriculture value chains, the agro-processing; • Increase availability of raw materials for domestic industries through facilitation of enhanced productivity in the primary production; • Catalyzing banks and other financial institutions to increase their lending to agro-processing and agribusiness Sector through guarantee facilities; • Provision of credit facilities to small and medium scale industries and processing facilities of agricultural produce within the focus value chains; TADB-Strategic focus • Collaborating with the Cereals and Other Produce Board (CPB) and National Food Reserve Agency (NFRA) to construct Strategic modern warehouses with new technologies; • Collaborating with other financial intermediaries to fund the project with large value investments in agriculture in the country; Examples of Projects Financed by TIB Development Bank ALKO VINTAGE – GRAPE PROCESSING CATA MINING – GOLD PROCESSING FACILITY TPDC AMIR HAMZA INSTANT COFFEE KAGERA SUGAR COMPANY GAS DISTRIBUTION PROJECT PROCESSING PLANT 15 Examples of Projects Promoted by NDC KILIMANJARO MACHINE TOOLS COMPANY MALARIA BIOLARVICIDES PLANT NGAKA COAL PROJECT LIGANGA AND MCHUCHUMA IRON ORE 16 Special Products • Fund management(administration of GOVT special funds) Agriculture financing window: MOF Small scale mining: Grants (WB), Credits & dev. Scheme (MEM) Financial Inst. Credit line for energy financing: TEDAP (WB & REA) Horticulture refinancing & financing structure: MOF & BOT Dutch and German Gov’t renewable energy fund: SNV Financing FYDP II 18 FYDP II in Context 1. Formulated to rally national efforts towards realization of TDV 2025 2. TDV 2025 goal is to attain a middle income (GDP per capita $ 3,000), semi-industrialized economy status by 2025 with following attributes: i. Self propelling high quality of life ii. Peace, stability and unity iii. Good governance iv. Well educated and learning society v. Competitive economy capable of sustainable and inclusive economic growth FYDP II in the Context of TDV 2025 Industrialization as a High Growth Factor Understanding FYDP II Prioritized projects worth TZS 107 trillion in: 1) Promoting growth and industrialization: Manufacturing, mining, construction, agriculture, trade, natural resources, tourism, technology and innovation 2) Enhancing human development: Education; skills development; health; water supply and sanitation; urban planning, housing, and human settlement; food security and nutrition; social protection; and good governance. 3) Creating an enabling environment for enterprises: Macro-economic stability; infrastructure and services; and ease of doing business. Flagship Projects: projects with high development impacts i. Construction of new central railway line to standard gauge; ii. Revamping the National air Carrier - Air Tanzania Corporation Limited(ATCL); iii. Mining of Coal and Iron ore and Construction of Iron and steel complex in Mchuchuma and Liganga; iv. Establishment of Special Economic Zones; v. Construction of a liquefied Natural Gas Plant(LNG); Flagship Projects: projects with high development impacts vi. Establishment of Kurasini Trade and Logistics centre; vii. Development of Mkulazi Agricultural Farm and Sugar factory viii. Mass training for development of specialized Skills for Industrialization and human development, fostering science, technology and Innovation DFIs Roles Under FYDP II • TIB Development Bank as an Agent for Financial Resources Mobilization through leveraging and syndication(TIB RECAPITALIZATION IS IMPORTANT FOR EFFECTIVE DISCHARGE OF THIS OBLIGATION); • Provide technical assistance for preparation of bankable projects and assist clients on project planning and implementation; • Design and structuring financing programmes(packaging); • Joint project financing with SADC DFIs; • Facilitate Private Participation in Public infrastructure; • Create a data base for pipeline of Bankable projects and solicit syndications. • Enhance Corporate Governance both for the DFI and at Client level. • Support and create linkages between SMEs and large Companies for sustainable industrialization. • Ensure Environmental risks are properly mitigated. • Increase availability of raw materials for domestic industries through facilitation of enhanced productivity in the primary production; • Collaborating with the Cereals and Other Produce Board (CPB) and National Food Reserve Agency (NFRA) to construct Strategic modern warehouses with new technologies; • DFIs to maintain highest level of integrity; • Observe and comply to Prudential Standards, Guidelines and Rating system as adopted by AADFI. Sample Fund Structure - Infrastructure Example Projects that Might fall Under this Programme AMOUNT (USD PROJECT NAME INST. REPAYMENT STRUCTURE BILLIONS) Bagamoyo Portside Industrial Zone EPZA 1.00 Concession Fee Kurasini Logistic Centre EPZA 0.05 Concession Fee Mtwara Freeport Zone EPZA 0.50 Concession Fee Kigoma Special Economic Zone EPZA 0.02 Concession Fee Mwanza Industrial Park EPZA 0.02 Concession Fee Bagamoyo Port TPA 0.70 User Fee / port wharfage Mtwara Port TPA 0.30 User Fee / port wharfage Mwanza Port TPA 0.20 User Fee / port wharfage Kigoma Port TPA 0.15 User Fee / port wharfage Power : Coal TANESCO 0.10 User Fee / PPA Power: Kinyerezi III TANESCO 0.30 User Fee / PPA Power: Urban Elecrification TANESCO 0.20 User fee / Connection Cities: Gas distribution TPDC 1.50 User fee / Connection Cities: Water distribution Water Authorities 1.00 User fee / Connection Total USD 6.04 ~ TZS 14 trillion N.B. Most of projects costs are assumed based on available literature / pre-feasibility TADB– Earmarked
Load more

Recommended publications
  • Issued by the Britain-Tanzania Society No 112 Sept - Dec 2015
    Tanzanian Affairs Issued by the Britain-Tanzania Society No 112 Sept - Dec 2015 ELECTION EDITION: MAGUFULI vs LOWASSA Profiles of Key Candidates Petroleum Bills Ruaha’s “Missing” Elephants ta112 - final.indd 1 8/25/2015 12:04:37 PM David Brewin: SURPRISING CHANGES ON THE POLITICAL SCENE As the elections approached, during the last two weeks of July and the first two weeks of August 2015, Tanzanians witnessed some very dra- matic changes on the political scene. Some sections of the media were even calling the events “Tanzania’s Tsunami!” President Kikwete addessing the CCM congress in Dodoma What happened? A summary 1. In July as all the political parties were having difficulty in choosing their candidates for the presidency, the ruling Chama cha Mapinduzi (CCM) party decided to steal a march on the others by bringing forward their own selection process and forcing the other parties to do the same. 2. It seemed as though almost everyone who is anyone wanted to become president. A total of no less than 42 CCM leaders, an unprec- edented number, registered their desire to be the party’s presidential candidate. They included former prime ministers and ministers and many other prominent CCM officials. 3. Meanwhile, members of the CCM hierarchy were gathering in cover photos: CCM presidential candidate, John Magufuli (left), and CHADEMA / UKAWA candidate, Edward Lowassa (right). ta112 - final.indd 2 8/25/2015 12:04:37 PM Surprising Changes on the Political Scene 3 Dodoma to begin the lengthy and highly competitive selection process. 4. The person who appeared to have the best chance of winning for the CCM was former Prime Minister Edward Lowassa MP, who was popular in the party and had been campaigning hard.
    [Show full text]
  • The United Republic of Tanzania the Economic Survey
    THE UNITED REPUBLIC OF TANZANIA THE ECONOMIC SURVEY 2017 Produced by: Ministry of Finance and Planning DODOMA-TANZANIA July, 2018 Table of Contents ABBREVIATIONS AND ACRONYMS ......................................... xiii- xvii CHAPTER 1 ................................................................................................. 1 THE DOMESTIC ECONOMY .................................................................... 1 GDP Growth ............................................................................................. 1 Price Trends .............................................................................................. 7 Capital Formation ................................................................................... 35 CHAPTER 2 ............................................................................................... 37 MONEY AND FINANCIAL INSTITUTIONS ......................................... 37 Money Supply ......................................................................................... 37 The Trend of Credit to Central Government and Private Sector ............ 37 Banking Services .................................................................................... 38 Capital Markets and Securities Development ......................................... 37 Social Security Regulatory Authority (SSRA) ....................................... 39 National Social Security Fund (NSSF) ................................................... 40 GEPF Retirement Benefits Fund ...........................................................
    [Show full text]
  • Annual Report 2019 East African Development Bank
    Your partner in development ANNUAL REPORT 2019 EAST AFRICAN DEVELOPMENT BANK 2 2019 ANNUAL REPORT EAST AFRICAN DEVELOPMENT BANK EAST AFRICAN DEVELOPMENT BANK EAST AFRICAN DEVELOPMENT BANK ANNUAL REPORT 2019 3 2019 ANNUAL REPORT EAST AFRICAN DEVELOPMENT BANK CORPORATE PROFILE OF EADB Uganda (Headquarters) Plot 4 Nile Avenue EADB Building P. O. Box 7128 Kampala, Uganda Kenya Country office, Kenya 7th Floor, The Oval Office, Ring Road, Rwanda REGISTERED Parklands Westland Ground Floor, OFFICE AND P.O. Box 47685, Glory House Kacyiru PRINCIPAL PLACE Nairobi P.O. Box 6225, OF BUSINESS Kigali Rwanda Tanzania 349 Lugalo/ Urambo Street Upanga P.O. Box 9401 Dar es Salaam, Tanzania BANKERS Uganda (Headquarters) Standard Chartered –London Standard Chartered – New York Standard Chartered - Frankfurt Citibank – London Citibank – New York AUDITOR Standard Chartered – Kampala PricewaterhouseCoopers Stanbic – Kampala Certified Public Accountants, Citibank – Kampala 10th Floor Communications House, 1 Colville Street, Kenya P.O. Box 882 Standard Chartered Kampala, Uganda Rwanda Bank of Kigali Tanzania Standard Chartered 4 2019 ANNUAL REPORT EAST AFRICAN DEVELOPMENT BANK EAST AFRICAN DEVELOPMENT BANK ESTABLISHMENT The East African Development Bank (EADB) was established in 1967 SHAREHOLDING The shareholders of the EADB are Kenya, Uganda, Tanzania and Rwanda. Other shareholders include the African Development Bank (AfDB), the Netherlands Development Finance Company (FMO), German Investment and Development Company (DEG), SBIC-Africa Holdings, NCBA Bank Kenya, Nordea Bank of Sweden, Standard Chartered Bank, London, Barclays Bank Plc., London and Consortium of former Yugoslav Institutions. MISSION VISION OUR CORE To promote sustain- To be the partner of VALUES able socio-economic choice in promoting development in East sustainable socio-eco- Africa by providing nomic development.
    [Show full text]
  • Amended Memorandum And
    AMENDED MEMORANDUM AND ARTICLES OF ASSOCIATION OF THE TANZANIA INSTITUTE OF BANKERS INCORPORATED DAY OF 1993 AMENDED PER RESOLUTION DATED 28 SEPTEMBER 2016 Drawn By: A. H. M. Mtengeti Advocate P O Box 2939 DAR ES SALAAM THE COMPANIES ACT CAP 212 COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL AMENDMENT TO THE MEMORANDUM OF ASSOCIATION OF THE TANZANIA INSTITUTE OF BANKERS LIMITED INCORPRATION AND NATURE OF THE INSTITUTE 1. The name of the Company is “THE TANZANIA INSTITUTE OF BANKERS LIMITED” a non-profit company incorporated and existing under the laws of the United Republic of Tanzania. 2. The Registered Office of the Institute shall be situated at Dar es Salaam, in the United Republic of Tanzania. 3. The main object for which the Institute is established is to certify professionally qualified bankers in Tanzania. 4. In furtherance of the object set out in clause 3 above, the Institute shall have the following roles: i. To play a leading role as the professional body for persons engaged in the banking and financial services industry, to promote the highest standards of competence, practice and conduct among persons engaged in the banking and financial services industry, and to assist in the professional development of its Members, whether by means of examination, awards, certification or otherwise and ensure quality assurance. ii. To promote, encourage and advance knowledge and best practices in banking and financial services in all their aspects, whether conventional or Islamic, and any other products or activities as may, from time to time, be undertaken by the banks and financial institutions.
    [Show full text]
  • Tanzania Mortgage Market Update – 30 June 2018
    TANZANIA MORTGAGE MARKET UPDATE – 30 JUNE 2018. 1. Highlights: The mortgage market in Tanzania registered a marginal decline of 2.8 percent in the value of mortgage loans during the second quarter of 2018, compared to an decline of 1 percent recorded in the first quarter of 2018. The number of mortgage lenders remained the same as the first quarter i.e. 31 lenders. Outstanding mortgage debt as at 30 June 2018 stood at TZS 331.49 billion1 equivalent to US$ 145 million compared to TZS 340.92 billion as at 31 March 2018. Average mortgage debt size was TZS 81.62 million, which is equivalent to around US$ 35,704 (TZS 81 million as at 31 March 2018). The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.32 percent (0.33 percent as at 31 March 2018). Mortgage debt advanced by top 5 lenders accounts for 59 percent of the total outstanding mortgage debt. Typical interest rates offered by mortgage lenders ranged between 15 -19 percent. The current real estate development projects that are under way, as well as those that are being developed, have created various opportunities for interested local and foreign investors. The Tanzanian housing sector’s fast-growing demand is mainly driven by the strong and sustained economic growth with GDP growth averaging 6-7 percent over the past decade (7 percent in year 2016), the fast-growing Tanzanian population which is estimated to be 55 million and is expected to more than double by 2050 and efforts by the Government in partnership with global non-profit institutions and foreign governments to meet the growing demand of affordable housing.
    [Show full text]
  • Working Paper Series
    Bank of Tanzania WP No. 13, May 2018 Bank of Tanzania Working Paper Series Nguling’wa Balele Nicholaus Kessy Financial Sector Reforms and Zegezege Mpemba Innovations and their Frank Aminiel Implications on Monetary Policy George Sije Emmanuel Mung’ong’o Transmission in Tanzania WP No 13: May 2018 i Bank of Tanzania WP No. 13, May 2018 Bank of Tanzania WP No. 13, May 2018 Financial Sector Reforms and Innovations and their Implications on Monetary Policy Transmission in Tanzania Nguling’wa Balele, Nicholaus Kessy, Zegezege Mpemba, Frank Aminiel, George Sije, Emmanuel Mung’ong’o Bank of Tanzania e-ISSN 2546-1990 Bank of Tanzania WP No. 13, May 2018 Bank of Tanzania WP No. 13, May 2018 Disclaimer The views expressed in this paper are solely those of the author(s) and do not necessarily represent the opinion of the Bank of Tanzania. e-ISSN 2546-1990 i Bank of Tanzania WP No. 13, May 2018 Table of Contents Disclaimer .......................................................................................................................................... i Table of Contents ............................................................................................................................. ii Glossary of Terms ........................................................................................................................... iii Abstract ............................................................................................................................................ iv 1.0 Introduction ...............................................................................................................................
    [Show full text]
  • Tanzania Mortgage Market Update – 31 March 2020
    TANZANIA MORTGAGE MARKET UPDATE – 31 MARCH 2020 1. Highlights: The mortgage market in Tanzania registered a 5 percent growth in the value of mortgage loans as at 31 March 2020 compared to its corresponding quarter ended 31 March 2019. The number of mortgage lenders increased to 34 lenders as at 31 March 2020 compared to 32 lenders reported on 31 March 2019. Outstanding mortgage debt as at 31 March 2020 stood at TZS 436.02 billion1 equivalent to US$ 189.47 million compared to TZS 414.79 billion as at 31 March 2019. Average mortgage debt size was TZS 79.26 million, which is equivalent to around US$ 34,442 (TZS 80.48 million as at 31 March 2019). The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) remained unchanged at 0.35 percent compared to its corresponding quarter 31 March 2019. Mortgage debt advanced by top 5 lenders accounts for 68 percent of the total outstanding mortgage debt (72 percent as at 31 March 2019). Typical interest rates offered by mortgage lenders ranged between an average of 15 -19 percent. The current real estate development projects that are underway have created several opportunities for interested local and foreign investors. The Tanzanian housing sector’s fast-growing demand is mainly driven by the strong and sustained economic growth with GDP growth averaging 6-7 percent over the past decade, the fast-growing Tanzanian population which is estimated to more than double by 2050 and efforts by the Government in partnership with global non-profit institutions and foreign governments to meet the growing demand of affordable housing.
    [Show full text]
  • Results Based Financing (RBF) - Stage 2 Rural Remote and Vulnerable Solar Market Development Instruction: Professional-Technical Services Provider Pre-Qualification
    SNV: Results Based Financing (RBF) - Stage 2 Rural Remote and Vulnerable Solar Market Development Instruction: Professional-Technical Services Provider Pre-Qualification 1. Background SNV is a not-for-profit international development organisation. Founded in the Netherlands 51 years ago, we have built a long-term, local presence in 38 of the poorest countries in Asia, Africa and Latin America. SNV has worked in Tanzania since the 1971 and currently has field offices in Dar es Salaam, Mwanza, Arusha, Dodoma, Sumbawanga and Mbeya. In alignment with our Corporate Strategy, SNV Tanzania focuses on three sectors namely Agriculture, Energy and Water, Sanitation and Hygiene (WASH). The overall goal of SNV Tanzania Energy sector is to contribute to improve the livelihoods of the rural and peri-urban people in Tanzania by accelerating the dissemination and use of renewable energy products and services. SNV Tanzania is involved in clean energy sub-sectors including improved cooking and solar. In 2014, SNV began active implementation of a project in Results Based Financing (RBF) for Pico-Solar PV lighting applications in the Lake Zone. The project initially concentrated on the application of a temporary financial product in mainstream banking as an RBF Fund of € 1.0 Million that serves to assist the Private Sector in developing the market for Pico-Solar products in isolated rural areas. In 2016 the RBF Fund grew to a total value of € 2.2 Million with expanded outreach to markets in the Lake and Central Zone Regions. As of close 2018, the RBF Fund has transacted € 1.89 Million to the private sector supporting verified delivery of nearly 80,000 solar products to rural Lake and Central Zone consumers.
    [Show full text]
  • Tanzania Mortgage Market Update – 31 December 2020
    TANZANIA MORTGAGE MARKET UPDATE – 31 DECEMBER 2020 1. Highlights The mortgage market in Tanzania registered a 6 percent annual growth in the value of mortgage loans from 31 December 2019 to 31 December 2020. On a quarter to quarter basis; the mortgage market in Tanzania registered a 4 percent growth in the value of mortgage loans as at 31 December 2020 compared to previous quarter which ended on 30 September 2020. There was no new entrant into the mortgage market during the quarter. The number of banks reporting to have mortgage portfolios increased from 31 banks to 32 banks recorded in Q4 2020 due to reporting to BOT by Mwanga Hakika Bank the newly formed bank after merger of Mwanga Community Bank, Hakika Microfinance Bank and EFC Microfinance Bank. EFC Microfinance bank did not report in Q3-2020 due to revocation of their licence after the merger and the newly formed bank reported for the first time in Q4-2020. Outstanding mortgage debt as at 31 December 2020 stood at TZS 464.14billion1 equivalent to US$ 200.93 million compared to TZS 445.21 billion equivalent to US$ 192.81 as at 30 September 2020. Average mortgage debt size was TZS 78.56 million equivalent to US$ 34,010 (TZS 76.67 million [US$ 33,203] as at 30 September 2020). The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) increased to 0.30 percent compared to 0.28 percent recorded for the quarter ending 30 September 2020. Mortgage debt advanced by top 5 Primary Mortgage Lenders (PMLs) remained at 69 percent of the total outstanding mortgage debt as recorded in the previous quarter.
    [Show full text]
  • Tanzania Mortgage Market Update – 31 December 2017
    TANZANIA MORTGAGE MARKET UPDATE – 31 DECEMBER 2017. 1. Highlights: The mortgage market in Tanzania registered a growth of 6 percent for the year 2017, compared to a growth rate of 16 percent in 2016. During the year 2017, 3 new mortgage lenders joined the list of lenders in Tanzania offering the mortgage product to make the total number of 31 lenders compared to 28 lenders in 2016. The new entrants in 2017 were Letshego Bank (T) Limited, Yetu Microfinance Bank PLC and Mufindi Community Bank Ltd. Outstanding mortgage debt as at 31 December 2017 stood at TZS 344.84 billion1 equivalent to US$ 153.87 million compared to TZS 324.08 billion as at 31 December 20162. Average mortgage debt size was TZS 82.62 million, which is equivalent to around US$ 36,863.52 (TZS 93.6 million as at 31 December 2016) The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.33 percent (0.34 percent as at 31 December 2016). Mortgage debt advanced by top 5 lenders accounts for 59 percent of the total outstanding mortgage debt. Typical interest rates offered by mortgage lenders ranged between 16 -19 percent. The current real estate development projects that are under way, as well as those that are being developed, have created various opportunities for interested local and foreign investors. The Tanzanian housing sector’s fast-growing demand is mainly driven by the strong and sustained economic growth with GDP growth averaging 6-7 percent over the past decade (7 percent in year 2016), the fast-growing Tanzanian population which is estimated to be 55 million and is expected to more than double by 2050 and efforts by the Government in partnership with global non-profit institutions and foreign governments to meet the growing demand of affordable housing.
    [Show full text]
  • Local Finance Initiative
    LOCAL FINANCE INITIATIVE END TERM REPORT: July 2012 – June 2015 Documented Results, Lessons Learned and Recommendations For Scale up and Sustainability Credits: Design & Layout: DJPA Cover Photos: Rob Beechey & Jacqueline Namfua Copyright: United Nations Capital Development Fund Dar es Salaam, Tanzania December 2015 Contents Acronyms 4 Foreword 5 - Regional Administration and Local Government 7 Note from the LFI Technical Team 8 1. Introduction 10 2. LFI Programme 12 3. Results 16 Kibaha Modern Market 21 Lupali Small Hydro-Electric Power Project 23 TANECU Cashew Nut Processing Project 25 Ileje Community Radio 26 Kibaha Bus Terminal 27 Moshi Bus Terminal 28 Kiwira River - Small Hydro-Electric Power Project 29 Maguta Small Hydro-Electric Power Project 30 LFI Portfolio of Projects in Progress 32 4. Key Events 34 5. Lessons learned 38 6. Challenges 42 7. Sustainability of the LFI-T Programme 44 Acronyms AGM Annual General Meeting ALAT Association of Local Authorities of Tanzania DANIDA Danish International Development Agency EA POWER East African Power Limited EU European Union LED Local Economic Development LFI Local Finance Initiative LGA(s) Local Government Authority(ies) MDGs Millennium Development Goals NSSF National Social Security Fund ODA Official Development Assistance PO-RALG President’s Office Regional-Administration and Local Government PPP Public Private Partnership REA Rural Energy Agency SDC Swiss Agency Development and Cooperation SDGs Sustainable Development Goals SIDA Swedish International Development Agency SME Small and Medium
    [Show full text]
  • Tanzania Mortgage Market Update – 31 March 2016
    TANZANIA MORTGAGE MARKET UPDATE – 31 MARCH 2016. 1. Highlights: The mortgage market registered a slightly higher growth rate of 4.2 percent during the first quarter of year 2016 compared to a growth rate of only 1 percent recorded in Q4 2015. 27 lenders were offering mortgage product as at 31st March 2016 compared to 26 lenders as at 31st December 2015, with Standard Chartered Bank being the new entrant in the mortgage market in Q1 2016. Outstanding mortgage debt as at 31 March 2016 stood at TZS 374.5 billion equivalent to US$ 171 million1 (TZS 359 billion as at 31 December 2015). Average mortgage debt size was TZS 92 million equivalent to around US$ 42,069.24 (US$ 48,417.16 as at 31 December 2015) The ratio of outstanding mortgage debt to Gross Domestic Product (GDP) stood at 0.46 percent (0.45 percent as at 31 December 2015). Mortgage debt advanced by top 5 lenders accounts for 70 percent of the total outstanding mortgage debt. High interest rates and lack of affordable housing remain the major constraints on market growth. Mortgage debt advanced by Tanzania Mortgage Refinance Company (TMRC) to mortgage lenders accounted for 12 percent of the market’s outstanding mortgage debt. 2. Mortgage Market Growth: The mortgage market in Tanzania has been growing steadily as the pace of housing investment picks up. As at 31st March 2016 total lending by banking sector for the purposes of residential housing was TZS 374.5 billion, which is equivalent to US$ 171 million. This represents growth of 4.2 percent from total mortgage lending as at 31st December 2015 (34% annual growth rate through March 2015 - March 2016).
    [Show full text]