POLICY BRIEF Albert Nyiti and Emmanuel Njavike Building Tanzania’s Urban Future The Need for a National Housing Policy Executive Summary Tanzania faces an annual housing shortfall of about 200,000 units, a predicament exacerbated by swift urbani zation, informality, and escalating living expenses. Present housing interventions are disjointed among ministries, agencies, and financial institutions, characterized by over lapping tasks and a lack of cohesive policy direction. Both DIRA 2050 and the CCM Manifesto 2025–2030 unequivo cally assert that access to adequate and affordable housing constitutes a fundamental human right, essential for en hancing individual well-being, maintaining societal stabili ty, and transforming the economy. This policy brief asserts that Tanzania urgently needs a stand-alone National Housing Policy to transform these pledges into a unified and implementable national framework. A stand-alone housing policy will elucidate institutional responsibilities, enhance governance and accountability, facilitate inclusive housing finance, formalize and support large-scale self-built hous ing, stimulate job creation and local economic develop ment, and synchronize national initiatives with global com mitments. A housing policy is not only vital for ensuring dignity but also for fostering development and promoting national prosperity. 1. The Problem: A Systemic Housing Crisis Without a Coordinating Policy 1.1 Fragmented Institutional Landscape Currently, the following institutions share responsibility for housing at different levels: → Ministry of Lands Housing and Human Settlements De velopment(MLHHSD): policy, planning, land allocation), → National Housing Corporation(NHC): commercial hous ing development → Tanzania Building Agency(TBA) and Watumishi Hous ing Corporation(WHC): public servant housing → Prime Minister’s Office Regional Administration and Lo cal Government(PMO–RALG): local planning authority and development control for housing development → Tanzania Mortgage Refinance Company(TMRC)& Min istry of Finance(MoF): housing finance Building Tanzania’s Urban Future 1

→ Pension funds and private developers: commercial hous ing development In the absence of a central housing policy, mandates over lap, responsibilities conflict, resources are misaligned, and informality becomes the default mode of housing delivery. 1.2 Misalignment Between Housing and Human Settlements The ongoing confusion between housing(“nyumba”) and human settlements(“makazi”) has caused conceptual am biguity, as evidenced by the 2022 National Housing and Population Census and DIRA 2050 translations. Housing constitutes a distinct subsystem necessitating its instruments. Similar to water, energy, health, and education, housing necessitates distinct policies. A housing policy can define these two technical terms in Kiswahili and English to remove this ambiguity in policy and other govern ment-related documents. 1.3 The Limits of Existing Laws and Policies The National Constitution falls short of recognizing hous ing as a right to all Tanzanians. Article 24(1 and 2) of the Constitution(amended 1977) should include the word “housing” and not just mention property. Moreover, the Na tional Human Settlement Development Policy(NHSDP) (2000) does not sufficiently address housing finance, rental regulation, social housing, public-private partnerships for affordability, guidelines for incremental housing, informal settlements at scale, and digital-era rental dynamics, such as short-term rentals, which necessitate specific policies. A policy designed for the year 2000 cannot adequately re spond to Tanzania’s 2025 realities, and neither can its re viewed policy. To address the aforementioned issues, the brief calls for the review of the 2018 Draft National Hous ing Policy, followed by its endorsement and the passing of a subsequent act. 2. Why Tanzania Needs a Standalone Housing Policy Now 2.1 Alignment with DIRA 2050 and CCM Manifesto 2025–2030 Both frameworks commit to adequate, safe, and affordable housing; dignity for low- and middle-income households; upgraded informal settlements; and inclusive human set tlement development. A standalone policy provides the mechanism to translate these into concrete action. 2.2 Supporting Self-Built Housing(Over 90% of National Stock) People in Tanzania incrementally have built nearly all the housing stock. A housing policy can: → Formalize and strengthening adequate and affordable self-building practices → Provide affordable serviced plots → Support housing microfinance → Integrate local building materials and offer tax relief to builders → Promote incremental core housing units → Improve construction quality and safety standards Housing is one of the most powerful economic levers that Tanzania has yet to realize. Tanzania requires a con text-specific housing policy, one that acknowledges the government’s limited capacity to provide housing to the people. The policy should establish a legal framework that allows individuals to continue providing housing, with clear laws and regulations. 2.3 Strengthening Housing Governance and Reducing Illicit Financial Risk Real estate is a high-risk sector for money laundering, tax evasion, and terrorist financing(FATF, 2025). A housing policy would set clear rules for buying and selling property, holding developers accountable, and setting quotas for af fordable housing(including social housing) in major pro jects. For instance, all major NHC, TBA, WHC, and private developers’ housing projects could dedicate up to 30% of their housing to social housing. This would allow low- and middle-income earners, the youth, the elderly, and other special groups to live in the most prime locations of Tanza nia’s urban areas. 2.4 Managing Digital Disruption in Rental Markets Short-term rental platforms(e.g., Airbnb) are absorbing long-term rental supply in cities. A housing policy could: → Regulate zoning and licensing, → Introduce Short-Term Rental(STR) taxation, → Protect long-term rental affordability. → Balance tourism growth with Tanzanians’ housing rights. 2.5 Delivering on International Commitments A dedicated housing policy is essential for achieving SDG 11(Sustainable Cities and Communities), the New Urban Agenda 2016, and Agenda 2063(A Well-Housed Africa). It will greatly strengthen the national reporting and compli ance framework. Building Tanzania’s Urban Infrastructure 2

3. What a Standalone Housing Policy Would Achieve 3.1 Institutional Realignment → Clear national housing governance structure → Mandate clarity between MLHHSD, NHC, TBA, WHC, PMO–RALG → Coordinated national-local action → Eased bureaucratic conflict and duplication 3.2 Legislative and Regulatory Reform The policy would pave the way for a Housing Act, covering: → Rental regulation and tenant-landlord protection → Housing finance rules → Affordable housing incentives → Standards for building, safety, and incremental housing → Cooperative, rental and social housing frameworks 3.3 Equitable Housing Finance A diversified housing finance ecosystem would include: → Housing microfinance → Rent-to-own schemes → Subsidized interest rates → PPPs or Joint Ventures with mandatory affordability quotas, e.g., social housing for the youth → Incentives for domestic production of building materials 3.4 Housing as a Driver of Local Economic Growth The construction of one housing unit creates 3–5 direct jobs(ILO 2021). A housing policy would stimulate local manufacturing of building materials, youth employment in construction trades, growth of SMEs and informal contrac tors, local financial markets, and skills development and certification systems. 3.5 Enhanced Social Equity The policy would guarantee inclusion of low-income households, youth and new graduates, women-headed households, individuals with disabilities, and rural-to-urban migrants. Housing becomes a transformative tool for social justice. 4. Policy Recommendations i. Immediate Actions for MLHHSD → Reinstate the standalone housing policy process sus pended after the 2018 draft. → Establish a National Housing Steering Committee in volving NHC, PMO–RALG, MoF, TBA, WHC, private/CSO actors, and members of academia. → Create a National Housing Observatory for data, evi dence, and monitoring. Introduce a national inventory of housing stock, informal settlements, and rental markets. ii. Priority Actions for Parliament → Enact a National Housing Act to operationalize the poli cy. → Allocate dedicated annual housing financing through the national budget. → Approve a regulatory framework for: » Short-term rentals, » Incremental housing standards, » Affordable housing quotas in PPPs. → Strengthen oversight for real estate transparency and anti-money laundering(AML) compliance. iii. Medium-Term Actions → Establish Affordable Housing Funds and Housing Micro finance Schemes. → Create national guidelines for incremental self-built housing units. → Introduce incentives for local production of building ma terials. → Mandate NHC, WHC, TBA, and private/CSO actors to al locate and/or build units for affordable and social hous ing. → Establish an Affordable Housing Corporation Conclusion Tanzania finds itself at a pivotal juncture. The vision is Building Tanzania’s Urban Infrastructure 3

clear: DIRA 2050 and the CCM Manifesto commit the na tion to adequate, safe, and affordable housing as a human right. However, without a standalone national housing poli cy, Tanzania lacks the strategic machinery to deliver this promise. A dedicated policy would: → Anchor housing within national development, → Unlock economic and social benefits, → Strengthen governance and accountability, → Support self-built housing, → Regulate rapid changes in the rental market, and → Position Tanzania as a regional leader in inclusive urban development. Housing is not merely shelter; it is the foundation of human dignity, national stability, and economic transforma tion. A standalone National Housing Policy is no longer simply recommended; it is urgently required. Building Tanzania’s Urban Infrastructure 4

References Chama Cha Mapinduzi(CCM).(2025–2030). CCM Manifesto 2025–2030. Dodoma, Tanzania. Financial Action Task Force.(2025). Jurisdictions under increased monitoring. https://www.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdic tions/increased-monitoring-february-2025.html#:~:text=earliest%20possible%20 date.-,tanzania,to%20develop%20an%20outreach%20plan. Accessed online: 4th De cember, 2025. International Labour Organization.(2021). The construction sector: Employment and economic impacts. ILO. Ministry of Lands, Housing and Human Settlements Development(MLHHSD). (2018). Draft Housing Policy. Dar es Salaam: Government of the United Republic of Tanzania. United Nations.(2015). Transforming our world: The 2030 Agenda for Sustainable Development. https://sdgs.un.org/2030agenda United Nations.(2017). New Urban Agenda. United Nations Human Settlements Programme(UN-Habitat). https://habitat3.org/the-new-urban-agenda/ United Republic of Tanzania(URT).(1977). Constitution of the United Republic of Tanzania. Dar es Salaam: Government Printers. United Republic of Tanzania(URT).(2000). National Human Settlements Develop ment Policy(NHSDP). Dar es Salaam: Government Printers. United Republic of Tanzania(URT).(2025). Tanzania Development Vision 2050. Dodoma: National Planning Commission. https://www.planning.go.tz/uploads/docu ments/en-1752762713-THE%20TANZANIA%20DEVELOPMENT%20VISION%20 2050.pdf Imprint Publisher Friedrich-Ebert-Stiftung Tanzania P.O Box 4472 6 Mwai Kibaki Road Dar es Salaam, Tanzania. +255 22 266 8575 info.tanzania@fes.de Responsibility for content and editing Amon Petro Contact Amon Petro amon.petro@fes.de Design/Layout Samwel Gidori Photo credits Page 1 top: Samwel Gidori The views expressed in this publication are not necessarily those of the Friedrich-Ebert-Stiftung e.V.(FES). Commercial use of the media published by the FES is not permitted without the written consent of the FES. FES publications may not be used for elec tion campaign purposes. March 2026 © Friedrich-Ebert-Stiftung Tanzania ISBN 978- 9976-5474-8-1 Further publications of the Friedrich-Ebert-Stiftung can be found here: ↗ https://tanzania.fes.de/publications. Tanzania Office Building Tanzania’s Urban Infrastructure 5