Tanzania, like many African countries, suffers from a severe shortage of good quality housing, said the World Bank.
"The shortage is growing every year, compounded by lack of long-term housing finance, lack of a formal residential housing construction sector, difficulties with land rights and rapid population growth and urbanisation," it said in its statement.
The project aims to provide medium and long-term finance to mortgage lenders.
This is the third credit that the World Bank has approved for Tanzania in the 2009/10 fiscal year, bring the total funds under International Development Association to $250 million.
News source: Reuters - Africa