Mwanga Hakika Bank invests Sh500 million in TMRC
What you need to know:
- TMRC's Chief Executive Officer, Oscar Mgaya, announced at a press conference on Tuesday, October 24, 2023, that with this new investment, the total number of shareholders has now increased to 18, and the total investments have reached Sh26 billion.
Dar es Salaam. Mwanga Hakika Bank Limited (MHB) has become a new shareholder in the Tanzania Mortgage Refinance Company Limited (TMRC), injecting a total investment of Sh500 million.
TMRC's Chief Executive Officer, Oscar Mgaya, announced at a press conference on Tuesday, October 24, 2023, that with this new investment, the total number of shareholders has now increased to 18, and the total investments have reached Sh26 billion.
“Mwanga Hakika Bank’s investment in TMRC was finalised in September 2023,” Mr Mgaya noted.
He added that MHB is joining other financial institutions’ TMRC shareholders, including CRDB Bank, NMB Bank, and Azania Bank, among others.
Currently, at least 31 banks offer mortgage loans. According to Mr Mgaya, outstanding mortgage debts have increased from Sh76.7 billion in 2011 to Sh584.3 billion in 2023, equivalent to an increase of 662 percent.
He applauded commercial banks for giving their customers more flexibility by increasing the time it takes to repay mortgage loans from seven years to between 15 and 25 years, depending on their requirements.
“TMRC seeks to expand home ownership in Tanzania by providing long-term financing to banks and financial institutions,” he noted.
Meanwhile, MHB Managing Director Jagjit Singh said the bank has joined TMRC to increase its loan base facility.
MHB was established through the merger of three banks in the country: Mwanga Community Bank Limited, EFE Tanzania Microfinance Bank Limited and Hakika Microfinance Bank Limited.
"Currently, we are operating within a network of seven branches in Dar es Salaam, Moshi, and Dodoma,” he said.
MHB has assets worth Sh129 billion, he added.
"We recorded a profit of Sh7 billion by the third quarter and expect to reach Sh9 billion by year-end," he noted.
Jagjit Singh emphasized that through TMRC shareholding, MHB aims to expand its 'Kwako Ni Kwako' credit facility for house construction, tailored to their customers' needs. Additionally, MHB provides 'Chapchap Nyumba' loans to facilitate the purchase of houses or the renovation of existing ones.
