Dar es Salaam. Despite facing an annual housing demand of about 200,000 units per year, the appetite of the privates sector for Tanzania’s real estate development remains low.
This, real estate developers say, is due to a number of factors, including the absence of a clear definition of what an affordable housing project entails, financing hurdles, unsupportive policies and difficulties in acquiring land.
In the wake of such challenges, developers now say the government should address the challenges to boost the private sector’s interest in meeting the demand.
Currently, only three state-owned institutions are developing affordable houses, which include the National Housing Corporation (NHC), Watumishi Housing Investment (WHI) and Tanzania Building Agency, which jointly build only 5000 houses per year.
With little investment in the sector, the 2022 Population and Housing Census show that the actual housing gap has widened from three million in 2012 to 3.8 million houses in 2022.
A property management strategist, Mr Andrew Kato, told The Citizen recently that several challenges were discouraging the private sector from participating in the development of affordable houses.
These, he said, include the lack of a housing policy that would assist in providing guidance and no fiscal incentives such as the removal of Value Added Tax (VAT) for selling houses from the government. The incentive, he said, could woo investors and enable them to get a return on their investments.
“We lack a clear definition of what constitutes affordable housing. For instance, we see houses being sold for Sh70 million, making it impossible for someone earning a minimum wage to afford a home and still have enough left to live on. That’s why we believe the housing policy needs to establish a precise definition,” he stressed.
Mr Kato added that the housing sector can contribute greatly to the growth of the national income, but there must be a definition of the type of affordable housing.
Watumishi Housing Investment (WHI) chief executive officer, Dr Fred Msemwa, said the main challenge facing the provision of affordable homes in Tanzania and generally in the East African region is the limited availability of construction finance, which limits the quantity of houses that can be supplied in the market.
Likewise, the lack of serviced land adds to the cost of houses as developers have to incur costs for infrastructure services such as roads, electricity, and water, hence making the prices of homes too high to afford for ordinary citizens.
The process for land is still a challenge, despite the good work that the government continues to do to streamline this process.
“The real estate industry is just picking up, and we are in discussions with potential investors to join forces to jointly deliver some housing units,” he said.
He said so far, WHI has built 1003 houses in 19 regions across the country, plans are to embark on the second phase of building 500 housing units in the cities of Dodoma and Dar es Salaam.
Furthermore, commencing the new financial year, we are set to implement the Public Servant Housing Scheme (PSHS) by building houses in districts to cater to public servants working in schools and health centres.
For his part, NHC Public Affairs and Information manager, Mr Muungano Saguya, said one of the major challenges in the provision of affordable housing in Tanzania is the availability of funding.
“The involvement of the private sector is paramount in resolving this challenge and therefore we have been encouraging the private sector to collaborate with NHC,” he said.
He said, unfortunately, mostly the private sector has more appetite for middle- to high-end developments, adding that NHC will continue to encourage and attract the private sector to invest in affordable housing.
In addition, NHC has constructed about 30,000 affordable housing units in Tanzania in 2023 since its inception, mainly built under slum clearance schemes in the major urban centres in the District Councils.
On the other hand, the managing director for Vijay Contractors, Mr Joseph Magida, said many challenges prevent the private sector from venturing into the business of affordable houses, including land issues and the lack of a housing policy that will protect low-income people.
Another challenge is the availability of funds. Banks are not yet ready to provide loans in that area, and the interest rate is still high, so investors see that they cannot get a return on investment.
“We think the government is the main stakeholder in this area who can deliver things that have attracted private investors; the land policy is unpredictable; conflicts are increasing all the time; this takes away the appetite of many investors,” he said.
Mr Magida added: “Currently, the government is building low-priced houses and not affordable housing as they are mentioned because they do not reflect the lives of Tanzanians. The house is sold for between Sh60 million and Sh100 million, so how many can buy it?”
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Tanzania Declares End of Marburg Virus Disease Outbreak
Tanzania today declared the end of Marburg virus disease outbreak after recording no new cases over 42 days since the death of the last confirmed case on 28 January 2025.
The outbreak, in which two confirmed and eight probable cases were recorded (all deceased), was the second the country has experienced. Both this outbreak, which was declared on 20 January 2025, and the one in 2023 occurred in the north-eastern Kagera region.
In response to the latest outbreak, Tanzania’s health authorities set up coordination and response systems, with support from World Health Organization (WHO) and partners, at the national and regional levels and reinforced control measures to swiftly detect cases, enhance clinical care, infection prevention as well as strengthen collaboration with communities to raise awareness and help curb further spread of the virus.
Growing expertise in public health emergency response in the African region has been crucial in mounting effective outbreak control measures. Drawing on experience from the response to the 2023 Marburg virus disease outbreak, WHO worked closely with Tanzanian health authorities to rapidly scale up key measures such as disease surveillance and trained more than 1000 frontline health workers in contact tracing, clinical care and public health risk communication. The Organization also delivered over five tonnes of essential medical supplies and equipment.
“The dedication of frontline health workers and the efforts of the national authorities and our partners have paid off,” said Dr Charles Sagoe-Moses, WHO Representative in Tanzania. “While the outbreak has been declared over, we remain vigilant to respond swiftly if any cases are detected and are supporting ongoing efforts to provide psychosocial care to families affected by the outbreak.”
Building on the momentum during the acute phase of the outbreak response, measures have been put in place to reinforce the capacity of local health facilities to respond to potential future outbreaks. WHO and partners are procuring additional laboratory supplies and other equipment for disease detection and surveillance and other critical services.
Marburg virus disease is highly virulent and causes haemorrhagic fever. It belongs to the same family as the virus that causes Ebola virus disease. Illness caused by Marburg virus begins abruptly. Patients present with high fever, severe headache and severe malaise. They may develop severe haemorrhagic symptoms within seven days.
In the African region, previous outbreaks and sporadic cases have been reported in Angola, the Democratic Republic of the Congo, Ghana, Kenya, Equatorial Guinea, Rwanda, South Africa and Uganda.
Source: allafrica.com
Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
Zanzibar’s tourism body chairman Rahim Bhaloo resigns
Bhaloo, who is also Chairman of the Zanzibar Commission for Tourism (ZCT), cited pressing family issues as the reason for his departure.Continue Reading
