Vice President Directs Finance Ministry To Speed Up Process For Allowing WHI To Access Credit Funds -

Vice President, Dr Philip Mpango cuts a ribbon to launch a project for the construction of 2,100 houses for civil servants. The project is implemented by the Watumishi Housing Investments (WHI). With him left, is the Minister of State in the President’s Office ( Public Service Management and Good Governance), Mr. George Simbachawene, and the Dodoma Regional Commissioner, Ms Rosemary Senyamule (R) .

The project will see the construction of 2,100 houses, at a cost of over 160bn/-, being part of the 5,000 house units to be build under the five- year plan for erection of housing for public servants in Tanzania

By Senior Semaweb Reporter, Dodoma

THE Vice President, Dr. Philip Mpango has directed the Finance Ministry to fast- track process for allowing the Watumishi Housing Investments (WHI) to access credit funds from different sources within and outside the country.

The development, according to him, will enable the state- owned property developer to boost implementation of a robust project for erection of houses for the public service servants.

In the same vein, Dr. Mpango also instructed the President’s Office, Public Services Management and Good Governance, to partner with the District Commissioners to earmark vast areas where WHI can build major structures for sheltering the civil servants.

Dr Mpango issued the directives when gracing the official launch of the project for the construction of a total of 2,100 public service houses, which is part of the 5,000 houses set for construction by WHI under the major five- year plan.

The robust project, to be implemented in various regions of the country will be accomplished is expecting to gobble up to 160bn/- upon it completion.

Giving further directives, the Vice President said it was also important for WHI to seek ways for using bonds, as well as partnership with key stakeholders from the private sector to raise more funds.

” Tanzania’s public service sector faces a huge deficit of reliable residences. This longstanding challenge is diluting the working morale of many servants, hence a need for a sustainable solution,” he observed.

He noted, as part of curtailing the situation, the Government in 2014 decided to form the WHI for the specific target to assist the civil servants in the country, in both urban and rural areas, to become house owners at affordable cost.

“I am pleased to learn that since its inception, the WHI has so far made a major stride in helping the servants in public service in the country to own houses,” he said.

Apart from appreciating the good role so far played by WHI in ensuring the civil servants become house owners at patriotic prices, he challenged the company to design and build house units that suit the residencial needs for at least 30 years ahead.

“Under this five year plan (2023-25 / 2025-27) the target is to ensure the civil servants in the country are provided with opportunity to own houses at affordable prices,” he insisted.

Dr Mpango directed the WHI to make sure selling of the houses is done as per the set regulations, including to prioritise the civil servants in the low and middle class, and not otherwise.

“The government is very determined to see that all civil servants, especially those serving in rural areas are benefiting accordingly from this plan, you should plug loop holes for any unscrupulous tycoons to use this opportunity, to benefit themselves,” he cautioned.

Moreover, he insisted that the prime mission for the Government to establish the company was to assist the civil servants, warning the WHI organisation to make sure the company is operating through reflecting the purpose of its inception, and not turning into a business oriented entity.

Speaking for his part, the Minister of State in the President’s Office ( Public Service Management and Good Governance), Mr. George Simbachawene (MP), unveiled that the country’s public service sector needs at least 200,000 houses to quench the civil servants residence thirst.

He said, the Government, through WHI is working around the clock to overcome the shortage, but more funds are needed to achieve the targeted goal.

“To meet the target, accountability, transparency and stakeholders participation remains among the major prerequisites ,” he said.

However, he hailed WHI for its creative and hardworking in erecting over 1000 house units for civil servants, as well as setting a friendly system for the beneficiaries to purchase the houses through diverse loan systems.

“It is encouraging to see the way the WHI has also managed to lower prices for the houses, at least for between 10 to 30 percent, in comparison to the actual prices in the market, the useful development which is enabling many servants to become house owners,” he appreciated.

Dr Fred Msemwa, the Chief Executive Officer (CEO) of WHI, for his part expressed delight for the tremendous support the company has kept on receiving from the government.

“The plan we launch today will entail construction of a total of 2,100 houses which is part of the 5,000 houses to be constructed under a period of five years at a cost of 160bn/-,” he explained.

To have many civil servants, benefiting from the scheme, Dr Msemwa said the company established Faida Fund.

Faida Fund is an open-ended scheme, which seeks to create wealth to Tanzanians particularly to middle and low-income groups through investments in units to obtain competitive return through capital growth; and enhance the culture of savings in the financial assets.

” Faida Fund has attracted all categories of investors ranging from small investors like bodaboda, students, workers, retirees, peasants etc. to big investors. The Fund has been registered with Capital Markets and Security Authority (CMSA),” he expressed.

ABOUT WATUMISHI HOUSING INVESTMENT

WHI was established under the Companies Act (Cap 212) of 2002. The primary objective of WHI is to enable public employees and members of pension funds to own affordable houses and serviced plots which are aspirations enshrined in both national and international objectives as enumerated in the National Human Settlements Development Policy (2000), Development Vision 2025, and the Sustainable Development Goals:2030 (SDGs).

WHI operates as a fund manager of public servants housing scheme under Real Estate Investment Trust (REIT) and a Collective Investment Scheme (CIS) currently managing FAIDA FUND. Operations for REIT and FAIDA FUND are in accordance with the Capital Markets and Securities Authority (CMSA) Act, the Capital Markets and Securities (Collective Investment Schemes) and Banking and Financial Institutions Act, 2006. Furthermore, the REIT complies with (Real Estate Investment Trusts) Rules, 2011.