Tanzania: Project for Low Income Houses on

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May 2010
Dar es Salaam, Tanzania, May, 31 2010 - A pilot housing microfinance programme aimed at advancing interest free loans to low income earners was officially launched in Dar es Salaam yesterday. The facility largely targets residents in the informal settlement areas to build better houses and also improve on the ones they were living in.

The three year project is financed by an Ngo, WAT Human Settlement trust in collaboration with WAT SACCOS and funded by financial sector deepening trust (FSDT) and ROOFTOPS of Canada. 

The Assistant Director of Housing Blasi Seleki who launched the project said yesterday that the project will impact positively on the lives of those targeted. He said many houses build in the city were of low quality.

 “Though the government is still looking for a proper solution to solve the situation, this will help to reduce poverty because owning a home is the most important wealth in the society” he said.

Seleki advised beneficiaries to make sure that they used the funds as required.

Seleki made the statement on behalf of the Minister of Land, Housing and Human Settlement Development John Chiligati.

“It is better you get enough advise from the experts when getting loans and make sure that you use the loan for building your own shelter instead of using the money for other purpose because the house brings respect to the public and the family” He said.

Seleki urged people getting their loans to make sure that they use them in building and improving their houses and not to use the money for other resource.

The Chief Executive Director of WAT Human Settlements Trust Tabitha Siwale said that their organisation was aimed at offering small and medium loans to the Tanzanias.

She said that they started offering small loans to people with low income since 2009 as a way of implementing their project.  

Ms. Siwale said the three years pilot housing microfinance project was aimed to give loans to more than 750 citizens with low income and small entrepreneurs.

She said so far 39 members had joined and have applied for loans in order for them to improve, build and extend their houses.

“When someone gets loan is allowed to pay in installments upon finishing the payment, it is allowed to apply for another loan” she said adding that clients get  between Sh400,000 and Sh1 million to develop their housing projects.

Meanwhile, a representative from FSDT said that Ian Robinson said that they decided to offer funds to the country in order to develop sustainable improvement to income Tanzanians.

He said this will make a network among members and would focus on poverty reductions by increasing range of financial products.



Source : The Citizen
 

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