Reconceptualizing housing finance in informal settlements: the case of Dar es Salaam,Tanzania

Abstract

Most urban dwellers in developing countries live in informal settlements in housing that is built incrementally. Low-income households most often have no access to formal housing finance institutions and largely depend on informal housing finance mechanisms in addition to the recently established shelter microfinance institutions. However, both formal and informal shelter-financing institutions have a requirement for savings. Based on empirical investigations in two informal settlements in Dar es Salaam, Tanzania, this paper explores the nature of savings in incremental housing development. The findings show that unpacking the concept of savings has the potential to uncover new opportunities for promoting housing finance in informal settlements, other than shelter microfinance.

Keywords

housing finance incremental housing development informal settlements livelihoods savings Tanzania

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