Tanzania Financial Services for Underserved Settlements (TAFSUS) grew from the work of the Slum Upgrading Facility (SUF) that has had a presence in Tanzania since 2004, with a mission of developing innovative financial mechanisms for slums and settlements upgrading projects. It followed the commitment of Government of Tanzania to formally recognise informal settlements and commitment to support the upgrading of such areas leading to better human settlements in the country.

TAFSUS is supported by the Slum Upgrading Facility (SUF) of UN Habitat, it aims to uplift the living standard of slum dwellers through the development of bankable projects that promote affordable housing for low- income household. SUF operates under the premise that informal settlements can be upgraded successfully when the existing settlement dwellers are involved in the planning and designing of upgrading projects.

TAFSUS is to work with various local actors to make informal settlements upgrading projects “bankable” – that is, attractive to retail banks, property developers, housing finance institutions, service providers, micro-finance institutions, and utility companies. TAFSUS is designed to offer technical support for upgrading projects development and credit enhancement, most commonly in the form of guarantees to support housing and infrastructure improvement for the poor. TAFSUS seeks to finance projects with a combination of community savings, central and local government subsidies, and local domestic commercial bank lending.
Similar SUF projects are being piloted in Ghana, Indonesia and Sri Lanka, where various approaches are being tested to support the purpose of financing upgrading of underserved settlements using domestic commercial finance.
The work of TAFSUS fits under the Cluster II of NSGRP8 –the improvement of Quality of Life and Social Well being in particular goal number 4 and five which state;

  •    Gaol 4: Increases access to affordable clean and safe water; sanitation and hygiene
  •   Goal 5 Develop decent human settlement while sustaining environmental quality

TAFSUS work is to contribute to the financing of NSGRP II. This is mainly in the capitalising the Public Private Partnerships (PPP) specifically in the provision of social services through credit enhancement.


The overall goal of TAFSUS is to reach 2000 households with overall project value of US$ 3.58 million by the year 2015.

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