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Tanzania to upgrade district markets

Dotto Lameck by Dotto Lameck
February 25, 2026
in Resources
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Premier Nchemba raises red flag on spending as infrastructure outlays rise
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ARUSHA: Tanzania plans to upgrade all markets operated by district councils in the next financial year to improve trading conditions and support small businesses, Prime Minister Mwigulu Nchemba said on Tuesday.

Speaking at the foundation stone ceremony for the Kilombero Market project in Arusha, Nchemba said the initiative forms part of broader efforts to align citizens’ livelihoods with the country’s middle-income ambitions.

He said President Samia Suluhu Hassan had directed an additional five per cent allocation on top of the existing 10 per cent of district council revenues earmarked for youth, women and people with disabilities. Part of the new funding will be used to renovate old markets and construct new, planned facilities for small-scale traders.

“We do not expect to see people conducting business in dirty and unplanned areas,” Nchemba said, adding that the policy would apply across all cities.

During his visit, the prime minister also inspected the 14.3 billion Tanzanian shilling Bondeni City Bus Terminal under construction in Muriet Ward. Although about 71 per cent of the implementation period has elapsed, actual construction progress stands at roughly 56 per cent, leaving the project more than 14 per cent behind schedule, according to city officials.

Nchemba directed authorities to submit revised timelines to ensure completion and called for the development of infrastructure to support gas-powered vehicles as part of efforts to modernise public transport.

Tanzania woos investors with incentives, logistics upgrades

“As Arusha grows, gas-powered vehicles and Bus Rapid Transit stations are essential for strengthening the transport system,” he said, urging engagement with private investors and financial institutions to fund environmentally friendly transport solutions.

He also instructed that the Mbuguni–Kilimanjaro International Airport road and the Bondeni City road leading to the planned 2027 Africa Cup of Nations stadium be upgraded to tarmac standard.

Information, Culture, Arts and Sports Minister Paul Makonda, who also serves as Arusha Town Member of Parliament, said 54 development projects are currently under way in the city. These include a 10,000-seat stadium and additional sports facilities ahead of the 2027 AFCON tournament, as well as hospital and road upgrades.

Makonda said improvements to public transport would reinforce Arusha’s position as the headquarters of the East African Community.

Arusha City Director John Kayombo said the bus terminal project, being built by Mohamedi Builders Limited and supervised by Mhandisi Consultancy Ltd in partnership with GBS Consultant Ltd, began in May 2025 and is scheduled for completion in May 2026.

Completed works include foundations, structural columns, slab construction and installation of water, electricity and security systems, he said, adding that landscaping has begun in an effort to recover lost time.

Regional Commissioner Amos Makalla welcomed government funding for the project, noting that it had previously been the subject of political debate before construction progressed to its current stage.

Tags: Arushadistrict marketseconomic developmentlocal governmentsmall businessesTanzania

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