The Government Institutions Pension Fund (GIPF) has proposed a rent-to-own housing model.
The proposal was presented to urban and rural development minister James Sankwasa on Tuesday during a meeting between GIPF and the ministry.
GIPF chief executive Martin Inkumbi said the latest proposal would help government employees, low-income earners, middle-income earners and informal traders access housing without many of the requirements imposed by banks and other financial institutions.
Inkumbi said the model would not require payslips and would offer an alternative path to home ownership for people who are often excluded from traditional housing finance.
Under the proposed system, tenants would rent houses with the option of eventually owning them. At this stage it is not clear who would construct the houses to be rented.
GIPF said the rental payments would gradually contribute towards ownership of the property through rent-to-own agreements.
Sankwasa welcomed the proposal. He said the current housing system has largely excluded low- and middle-income earners, as well as informal traders.
He emphasised the need for reforms to enhance housing affordability and expedite the delivery of completed houses.
Sankwasa called for the use of alternative building technologies and other construction methods that could help reduce costs and increase housing supply.
Sankwasa also urged GIPF to explore ways of supporting local authorities with the upgrading and reconstruction of sewage infrastructure.
