Mega hous­ing project gets $19m in Tz

East African Business Week - - NEWS - BY DAMAS MAKANGALE

DAR ES SALAAM, TAN­ZA­NIA - Tan­za­nia is cham­pi­oning to im­prove the liveli­hood of civil ser­vants in­clud­ing teach­ers fol­low­ing the dis­burse­ment of Tsh.44 bil­lion (ap­prox­i­mately $19.7 mil­lion) to Wa­tu­mishi Hous­ing Com­pany (WHC). A to­tal of 800 hous­ing units were con­structed in the first phase in five projects un­der­taken in Mt­wara, Lindi, Moro­goro, Dar es Salaam, and Simiyu while other schemes were im­ple­mented in Mwanza and Tanga re­gion re­spec­tively, “The gov­ern­ment as­pires to shift from a mid­dle in­come coun­try as you’re aware that there are some fea­tures in the mid­dle in­come states com­pared to the low in­come. One of them is the cul­ture of an in­di­vid­ual to buy a house in a sur­veyed area,” says WHC, Chief Ex­ec­u­tive Of­fi­cer, Dr Fred Msemwa in an exclusive in­ter­view with the East African Busi­ness Week. Msemwa said in most mid­dle in­come states, in­di­vid­u­als are not in­volved in the con­struc­tion of houses and buy­ing land, in­stead all the trans­ac­tions are done by rec­og­nized firms and the process is un­der­taken pro­fes­sion­ally. He said that the pro­fes­sion­als com­pa­nies iden­ti­fied sur­vey plots and con­struct de­cent houses to pave way for sell­ing to in­di­vid­u­als while the gov­ern­ment main­tains its taxes ac­cord­ing to the law of the land. “The re­sponse from the civil ser­vants is very high but the huge chal­lenge is the in­ter­est rates from the so­cial bas­ket funds that fi­nances the civil ser­vants con­structed houses across the coun­try, adding that they de­cide to come with other tech­niques to con­struct cheap houses to or­di­nary pub­lic work­ers such as nurses, teach­ers, aca­demic of­fi­cers and mu­nic­i­pal­ity work­ers,” noted Dr. Msemwa The CEO fur­ther added that WHC has also de­cided to open doors for pub­lic em­ploy­ees to pay their houses in in­stall­ments from time to time un­til he or she com­pletes the whole loan. For the con­struc­tion of the teacher houses in Lindi, Mt­wara and Tanga the com­pany has teamed up with Tan­za­nia Education Author­ity (TEA) as part of their ef­forts to re­vamp teacher’s ac­com­mo­da­tion. “Through gov­ern­ment in­ter­ven­tion we also hope that the cost for land and build­ing ma­te­ri­als will be low­ered to en­able us to con­struct af­ford­able houses, “he ex­plained as re­sponse from civil ser­vants is very high. The main ob­jec­tives of the com­pany is to pro­mote pri­vate in­vest­ment and as a real es­tate de­vel­oper through en­cour­ag­ing in­di­vid­u­als to buy shares even­tu­ally be­come part of the com­pany share­holder. He said the com­pany is in the long run di­ver­sity of com­mit­ment to be­come a com­mer­cial en­tity by buy­ing plots, de­velop them and sell to the peo­ple in­clud­ing build­ing com­mer­cial houses for rent in the ma­jor cities in the coun­try. Ac­cord­ing him the pass­ing of Unit Ti­tle Act 2008 through Par­lia­ment en­ables the buy­ers or ten­ants to ob­tain col­lat­eral or loan from any fi­nan­cial in­sti­tu­tions to foster their so­cial and eco­nomic goals. He said the main chal­lenge ob­served in the ini­tial stage was the fact that many peo­ple were not aware of mort­gage fi­nanc­ing. “We as well got com­plaints from ma­jor­ity of ap­pli­cants that in­ter­est rates charged by banks and fi­nan­cial in­sti­tu­tions were high and this scared away many po­ten­tial buy­ers,” he noted. Civil ser­vants wish­ing to ac­quire houses built by the com­pany have four op­tions which in­clude pay­ing cash, mort­gage fi­nanc­ing from banks, down pay­ment as well as hire pur­chase which is cur­rently ap­pli­ca­ble for the Moro­goro project only. Wa­tu­mishi Hous­ing Com­pany (WHC) is a pub­lic en­tity es­tab­lished in 2013. WHC is a prop­erty de­vel­oper and a li­censed fund man­ager for man­age­ment of the WHC Real Es­tate. In­vest­ment Trust ( WHC-REIT). WHC-REIT was li­censed by the Cap­i­tal Mar­ket and Se­cu­rity Author­ity (CMSA) in 2015 and be­came the first fully-fledged REIT to be es­tab­lished in Tan­za­nia and East Africa. As a prop­erty de­vel­oper, WHCREIT is the main im­ple­menter of the Tan­za­nia Pub­lic Ser­vant Hous­ing Scheme tasked with build­ing of 50,000 hous­ing units in five phases. Houses shall be sold un­der mort­gage ar­range­ments to pub­lic ser­vants and other el­i­gi­ble mem­bers of the pub­lic across Tan­za­nia. In­vest­ment in Real Es­tate In­vest­ment Trusts (REITS) is a new con­cept in Tan­za­nia and yet it pro­vides an im­mense op­por­tu­nity for the gen­eral pub­lic to par­tic­i­pate and cre­ate per­sonal wealth as well as con­trib­ute to­wards over­all eco­nomic de­vel­op­ment. WHC-REIT seeks to work with other na­tional and in­ter­na­tional fund man­agers and other stake­hold­ers to de­velop this mar­ket in a man­ner that is ben­e­fi­cial to all par­ties.

Wa­tu­mishi Hous­ing Com­pany (WHC) is a pub­lic en­tity es­tab­lished in 2013. WHC is a prop­erty de­vel­oper and a li­censed fund man­ager for man­age­ment of the WHC Real Es­tate.

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