Job description2022 Tanzania Mortgage Refinance Company (TMRC) signed a memorandum of understanding with

Habitat for Humanity International (HFHI) to expand and strengthen the low-income housing finance sector in Tanzania. Focusing on Housing MicroFinance (HMF), the partnership aims to support lower-income Tanzanians and those working in the informal sector to easily purchase, build or upgrade their homes.

Through this partnership, HFHI and TMRC are seeking to engage a company/consultant to carry out transparent and objective research to unpack the potential of Housing Microfinance (HMF) in Tanzania.

Background

Tanzania is one of the fastest growing economies in the world. However, the Housing Microfinance (HMF) sector is still in its nascency hence, many families struggle to access adequate and affordable housing. The high cost of formal financing options and limited affordable housing supply remain key barriers. It is therefore critical that efforts to expand the market are data-driven and informed by a strong understanding of low-income families’ housing needs across the country.

The Government has been undertaking a number of initiatives aimed at facilitating improved delivery of long term development finance. In March 2010, the Government signed an agreement with the International Development Association (IDA) for the Housing Finance Project (HFP), aiming at creating and developing a sustainable, market-based mortgage market through the provision of medium and long-term liquidity to mortgage lenders. The HFP has three components: Development of the Mortgage Market, Development of Housing Microfinance and Expansion of Affordable Housing Supply

As part of the implementation of component one of the HFP, TMRC was established in 2010 and became operational in 2011, as a Mortgage Liquidity Facility (MLF), a secondary market financial institution offering long term loans to Primary Mortgage Lenders (PMLs) for the sole purpose of PMLs extending residential mortgages to their clients.

About Tanzania Mortgage Refinance Company Limited (TMRC)

Tanzania Mortgage Refinance Company Limited (TMRC) is a specialized private-sector financial institution that provides long-term funding to financial institutions for mortgage lending purposes.
TMRC with support from HFHI is now considering building a case for HMF in Tanzania and explore how the financial institutions can tap into this market through tailored loan products.

About Habitat For Humanity International

Driven by the vision that everyone deserves a decent place to live, Habitat for Humanity’s Terwilliger Center for Innovation in Shelter (TCIS) works with housing market systems by supporting local firms and expanding innovative and client-responsive services, products and financing so that households can improve their shelter more effectively and efficiently.

Objective of the Research

Identify the needs and potential for HMF in Tanzania
Identify the current HMF situation in the Tanzanian market
Build a case for HMF potential in Tanzania
Benchmark other markets with matured HMF solutions
Identify peculiar terms for supporting HMF and its deviations from normal/traditional Housing Finance

Results from this research will help the HFHI and TMRC to:

Support diversification of its offering to target the potential outside the traditional mortgage market
Identify potential financial providers who are willing to pilot with the roll out of HMF in Tanzania
Fund mobilization to support the diversification of TMRC operations and
Support with Technical Assistance for the roll out of HMF products by the potential financial providers

Scope of Work

The selected company/consultant must undertake at the minimum the following activities:
Market Analysis for both the demand and supply sides
Provide detailed recommendations on: the Business case for HMF in Tanzania; Potential partners; Structure or framework based on global benchmarking; Ways of stakeholders’ engagement
Research Dissemination: To be discussed and agreed upon with HFHI and TMRC. (HFHI and TMRC will own the data collected)

Deliverables and Milestone

Inception report (2 weeks after contract signing)
Market Analysis Report (1 months after delivery of inception report)
Draft report (2 weeks after delivery of market analysis report)
Final report (2 weeks after receiving comments on the draft report)

Eligibility Criteria

The research company/consultant should have:
At least 3 experiences in conducting market systems research/studies, preferably in East Africa
Relevant qualification in the field of research, finance, and investments
Experience working in housing finance specifically housing microfinance is an added advantage
Understanding of the housing finance in the African context
Ability to achieve maximum scope of reach with limited resources

Research Methodology

Although we recommend the research company/consultant to provide the methodologies used to conduct the research, it is proposed to first conduct a macroeconomic environment and policy analysis of constraints and opportunities for housing microfinance in Tanzania, followed by stakeholders mapping and engagement with potential partners and benchmarking exercise, working with key stakeholders to assess potential market demand for affordable housing finance products and services and finally giving recommendations. The consultant should also highlight the methodology required for demand-side assessment - the demand side would need interviews with low-income families, through qualitative (FGDs and in-depth interviews), quantitative (surveys), or mixed methods.

Proposal Evaluation

Proposals will be assessed according to:
Relevant, demonstrated competence of firm
Demonstrated expertise of the company/key individuals
Content, quality and cost of the proposal

Submitted Proposals Must Include

A response to the ToR, proposed methodology and key issues for consideration in the research
A detailed work plan, demonstrating the feasibility of the proposal
Statement of qualifications of the firm(s) as relevant to the research project
Name and CV of staff members responsible for i) overseeing the work and ii) undertaking the research
Financial proposal and cost estimates including cost of travel if necessary
Supporting documents for registered firms including at a minimum; company registrations and tax clearance certificate(s).

Proposal Submission

The consultant(s) is/are expected to submit physical/digital copies of the proposal with the subject line: UNPACKING THE POTENTIAL OF HOUSING MICROFINANCE IN TANZANIA to:

The deadline for submission is at 5:00pm EAT on 20 October 2022. Once the selection process has been completed, TMRC will issue a contract confirming the appointment of the service provider. Any queries should be directed to Daniel Mhina:

Habitat for Humanity will only respond to shortlisted candidates.

Working Arrangements