The World Bank has approved a $200 million loan to enhance transport infrastructure in Dodoma, supporting Tanzania’s efforts to develop its administrative capital into a thriving commercial hub.
The funding will initiate the Dodoma Integrated and Sustainable Transport (DIST) project, which aims to improve road networks and public transport services. The project is expected to create new economic opportunities for Dodoma’s fast-growing population, which has been increasing at a rate of 6.4% annually, nearing one million residents in 2023.
DIST project
Dodoma’s transformation began gaining momentum in 2016 when the late President John Magufuli advanced the relocation of government offices from Dar es Salaam, following a resolution first proposed in 1973 by Julius Nyerere. This shift has driven rapid urban expansion, with the city’s built-up area increasing from 11 square kilometers in 2000 to 60 square kilometers by 2024. However, despite its administrative importance, Dodoma lags behind economically. As of September 2024, its per capita GDP was approximately Tsh1.9 million ($714), significantly lower than Dar es Salaam’s Tsh5.74 million ($2,157).
The DIST project is expected to benefit more than half of Dodoma’s residents by improving transport systems and boosting economic activity. The project is projected to create 10,000 new jobs by 2030 and increase the city’s economic output by at least 2%. Additionally, the plan includes the construction of pedestrian walkways and cycling lanes to enhance mobility within the central business district and surrounding areas.
Implementation of the DIST project will involve several key government agencies, including the Tanzania National Roads Agency (TANROADS), the Land Transport Regulatory Authority (LATRA), the Tanzania Rural and Urban Roads Agency (TARURA), and the Dodoma City Council. By upgrading infrastructure and improving transport efficiency, the project aims to position Dodoma as a vital economic center and improve the quality of life for its residents.