Dar es Salaam, Tanzania, January 21, 2020
— IFC, a member of the World Bank Group, today announced an investment of up to $5.75 million in the Tanzania Mortgage Refinance Company (TMRC) to help grow Tanzania’s underdeveloped mortgage sector and increase access to affordable housing.
The financing includes the local currency equivalent of up to $1.5 million in equity and $4.25 million for a medium-term notes bond issuance, spread over multiple tranches. The investment leverages the International Development Association’s (IDA) Private Sector Window local currency facility and blended finance facility.
Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa, said, “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.”
TMRC was established in 2010 under the World Bank’s Housing Finance Project and is regulated by the Bank of Tanzania (BoT). The World Bank, through the BoT, has to date provided $70 million in long-term funding to TMRC, which ha
helped the company grow its mortgage loan portfolio from 579 in 2011 to 5,411 in 2019, while improving affordability by extending the mortgage repayment period from five years to up to 25 years.
TMRC has issued two medium-term notes totaling 21.7 billion Tanzanian shillings since 2018. The debt program is expected to reduce TMRC’s dependence on public sector funding. IFC will tailor its participation in the subsequent bond issuances as needed, to achieve the maximum impact.
“IFC’s investment will help TMRC attract new investors, meaning that we can obtain longer term, more diverse funding and sustainable pricing.” said Oscar Mgaya, Chief Executive Officer, TMRC.
IFC’s investment in TMRC will be backed by advisory support to grow awareness of mortgage products in Tanzania. IFC will also help the company build capacity of primary mortgage lenders in the areas of underwriting, marketing, and portfolio management.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
About the IDA Private Sector Window
As part of the record $75 billion IDA18 replenishment, the World Bank Group created the $2.5 billion IDA Private Sector Window to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA18 objectives and the Sustainable Development Goals, the window provides concessional funds for co-investment alongside IFC and Multilateral Investment Guarantee Agency (MIGA) private investments. Concessional funds help to mitigate risk and reduce barriers, which unlocks and crowds in private investment in emerging markets. For more information, visit:
Tanzania Mortgage Refinance Company Limited (TMRC) is a specialized private sector financial Institution that provides long-term funding to financial institutions for the purposes of mortgage lending. Its objective is supporting financial institutions to do mortgage lending by refinancing Primary Mortgage Lenders' (PMLs') mortgage portfolios. This type of lending is also known as wholesale or secondary market lending. TMRC refinances mortgage loan portfolios rather than individuals mortgage loan and caters to banks rather than individual borrowers. For more information, visit