Tanzania is moving to exempt affordable housing construction from VAT, with the relief applying to projects valued at no more than 50 million Tanzanian shillings.

Deputy Minister for Lands, Housing and Human Settlements Development Kaspar Mmuya announced the measure on the sidelines of the 45th Annual Meeting of the Shelter Afrique Development Bank in Rabat, Morocco, telling reporters:

"Any investment in housing projects costing not more than 50m/- will be exempt from VAT. This is a very significant incentive."

Mmuya framed the exemption as a tool for drawing private capital — domestic and international — into affordable housing construction, with the government targeting a significant expansion of housing supply by 2050. He acknowledged the state cannot meet those targets alone.

"Without working closely with the private sector to help the country access funding from within and outside Tanzania, we will not be able to achieve this objective," he said.

He said next steps include briefing President Samia Suluhu Hassan on the Rabat conference outcomes and engaging the Ministry of Finance on investor outreach.