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.

Shortage of affordable housing

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 six percent 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.