Habitat for Humanity Tanzania

The Housing Need

Tanzania is a predominantly rural country that is experiencing rapid urban growth. There is a high instance of poverty, and Tanzania is consistently ranked by the annual UN Human Development Index as one of the 20 least-developed countries in the world in terms of the citizens’ quality of life. With UN estimates of up to 89 percent of the population living on less than $2 per day, it is not surprising that poor housing conditions are prevalent in both the rural and urban areas of Tanzania.

In rural Tanzania, most families own their homes, but the housing units are of very poor quality. Nondurable materials, such as mud, pole walls, earthen floors and grass thatched roofs are usually used in construction, resulting in houses that last only an average of seven to eight years, according to the Tanzanian government’s National Human Settlements Development Policy of 2000. Most rural houses require significant maintenance and pose a serious health risk to the occupants.

Tanzania is experiencing rapid urbanization, particularly in the largest city of Dar es Salaam, which results in an increase in the number of informal and unplanned settlements. The National Human Settlements Development Policy estimates that 70 percent of the urban population and 60 percent of the urban houses in Tanzania are located in these unplanned settlements where physical and social infrastructure is minimal at best. They are characterized by unhealthy water supplies, overcrowding, poor infrastructure and sanitation, as well as poor housing conditions. The housing situation generally can be categorized as having an inadequate number of units in the urban areas and poor conditions in the rural areas.

The National Human Settlements Development Policy notes that the “near complete lack of formal mortgage housing facilities has made house construction a difficult process for most households, especially those in the low-income category.” The government has concluded that a major factor in the housing deficit is a lack of housing finance. This would be particularly true for the poor, who have a difficult time gathering lump sums of capital for large expenditures such as housing or home improvement.

Habitat for Humanity Tanzania
Habitat for Humanity Tanzania began in 1986 in Kasulu, which is located in the westernmost region. It then spread to more than 18 other affiliates and projects that are scattered across all corners of the country, including the island of Zanzibar. Although Habitat Tanzania managed to build slightly more than 2,000 houses in its first 20 years, managing the program was challenging and expensive due to the wide geographic coverage and relatively small impact per affiliate.

Program Highlights
Habitat for Humanity Tanzania is in the process of designing its program to focus on providing and promoting housing finance for the poor through a housing microfinance model. It will develop housing finance products that will help low-income families improve their housing conditions. As Habitat Tanzania gains expertise in launching its own housing microfinance program, it will seek to promote and encourage microfinance institutions that provide business loans to also integrate housing finance into their product lines. Now in the process of market research and product design, Habitat for Humanity Tanzania expects to launch its housing microfinance program in July 2009. The ultimate goal is to increase access to housing finance for the low-income population in Tanzania and thereby contribute to a substantial improvement in the overall housing environment.

The new housing microfinance program will have a user focus. Rather than having set house designs that homeowners must accept, Habitat clients will propose their home improvement projects and control their own building process. This increases the level of ownership and satisfaction by the clients and also helps ensure that the assistance offered is affordable and fits within a family’s livelihood strategy.

As part of the focus on specializing in housing finance for the poor, Habitat for Humanity Tanzania is no longer holding Global Village or other special building events.

Country Facts

Sources:

“A Right to a Decent Home: Mapping Poverty Housing in Africa / the Middle East,” an HFHI Publication.

Ministry of Lands and Human Settlements Development (2000). National Human Settlements Development Policy. Dar es Salaam: Government Printer.

Affiliates in Tanzania