• Tanzania’s administration capital, Dodoma, unveils plan to expand areas permitted to run business round-the-clock as the city turns into investment magnate.
  • To strategically empower the city, the World Bank has injected $200 million into Dodoma.
  • Tanzania is now urging investors to sieze government is incentives and grow their enterprises in Dodoma.

Dodoma, Tanzania’s capital, is boldly positioning itself as a rising commercial powerhouse, challenging the long-standing dominance of Dar es Salaam as the nation’s economic heartbeat.

With directives from the recent Dodoma Regional Business Council meeting to establish 24-hour business zones and enhance infrastructure such as street lighting in Mbande and Kibaigwa, the city is laying a robust foundation to foster vibrant, round-the-clock commerce, signaling its ambition to emerge as a dynamic hub that rivals the coastal port city’s economic legacy.

According to o a press release shared after the meeting, the delegates directed the Tanzania Rural and Urban Roads Agency (TARURA) and the Tanzania National Roads Agency (TANROADS) to develop both short- and long-term plans to as part of efforts to improve safety and extend business hours.

“In addition, all councils and the Small Industries Development Organisation (SIDO) were urged to intensify public awareness campaigns on the availability of affordable loans for small and medium enterprises,” reads the press communique.

The report further quotes the Dodoma Regional Commissioner (RC), Ms. Rosemary Senyamule saying the government is intensifying efforts to create a more business-friendly environment by tackling challenges faced by traders and promoting inclusive dialogue to support private sector growth.

The RC urged entrepreneurs to utilize the growing number of investment opportunities in the city country and region. “I urge you all to seize the opportunities being publicized so that you may be the first to benefit,” RC Senyamule said.

The council also resolved that TANROADS and TARURA should prioritise improvements on road infrastructure in Zuzu, a key area targeted for investment expansion. Councils were also directed to embrace Public-Private Partnerships (PPP) as a means to implement large-scale development projects.

The city authorities were also advised to scale up the registration of small-scale traders to facilitate better data collection and planning as part of their efforts to strengthen and formalize the city’s informal sector.

What’s more, TARURA and the Dodoma Urban Water Supply and Sanitation Authority (DUWASA) were urged to carry out regular inspections of drainage systems, bridges, and water infrastructure to ensure timely maintenance.

In a bid to streamline service delivery, stakeholders at the meeting resolved that all institutions offering services to business operators should be consolidated into a ‘one-stop centre’ to improve efficiency and accessibility.

Read also: Dar es Salaam Port challenges Mombasa’s dominance: Who will win the trade race?

World Bank invests in Dodoma

The World Bank recently announced it will finance investment geared at enhancing mobility and accessibility in Dodoma. World Bank said the investment will unlock economic opportunities and create over 10,000 new jobs by 2030, while boosting the city’s economic output by 2 per cent.

The $200 million Dodoma Integrated and Sustainable Transport (DIST) project, that has just been approved by the Board of the Bretton woods institution, will benefit more than 430,000 residents, that is, over half of the city’s population and which includes some 222,000 women and 81,700 youth.

Financed by the World Bank arm International Development Association (IDA), the investment will improve urban mobility through upgrading selected corridors, resilient access routes, central business district (CBD) improvements, and enhanced walking and cycling infrastructure.

“It will also benefit 750 public transport drivers and others in the sector, strengthening livelihoods and ensuring a more efficient and sustainable transport system for Dodoma’s growing population,” the World Bank report explains.

“Dodoma’s rapid expansion since 2016 presents both opportunities and challenges,” said Nathan Belete, World Bank Division Director for Malawi, Tanzania, Zambia, and Zimbabwe.

“As the city grows, ensuring access to safe and efficient transport is critical to sustaining its economic momentum and improving the quality of life for its residents. This project will help Dodoma grow in a more sustainable way, ensuring that infrastructure keeps pace with the city’s ambitions,” he summed up

Dodoma investment opportunities

Dodoma, a city approximately 400 kilometres east of Dar Es Salaam, offers numerous business opportunities due to its ongoing development and increase of government employees, embassies, UN agencies, and players in the private sector.

Key areas with high potential include accommodation, that is, housing, hotels, guest houses, and food processing. Increasingly, the city is turning into a hotbed of private educational and recreational facilities.

According to investment experts, specific business opportunities in Dodoma include the real estate and construction sector. With a growing population and the need for more infrastructure, there is increasingly high demand for housing and commercial spaces.

The food processing sector is another booming industry in Dodoma, given the region’s high agricultural production capacity. “This creates an opportunity to add value to local produce and create new businesses,” says Dr. Humphrey Lundigo of the University of Dodoma.

Also green with opportunities is agro-dealership opportunities. “There is a gap in proactive problem-solving and a strong demand for agro-dealers in the region,” the expert points out.

Another potential area for investment is the education and training sector. The city needs private kindergartens, schools, and training centers to cater to the expanding population, Lundigo advices.

The hospitality and tourism sector is yet another viable investment opportunity in the capital city. As Dodoma grows, so does the need for accommodation, restaurants, and recreational facilities creating room for investment.

Similarly, you have the retail and services sector. With a larger population and increased economic activity, there will be a greater demand for various retail and service businesses.

Another area to look into is the construction materials sector. “The ongoing construction and infrastructure development create a high demand for hardware stores and building materials,” he notes.

According to city authorities, factors to consider when starting a business in Dodoma include timing. The authorities say timing is crucial because the current period is ideal for investing in Dodoma as it transitions into a major capital city and as government moves it’s offices to the city.

Another consideration is understanding the local market. Would be investors are urged to research the specific needs and preferences of the growing population before starting a business.

Accessibility and infrastructure, especially when choosing a location for your business is vital, too.