The Parliamentary Standing Committee on President's Office-Regional Administration and Local Government (PO-RALG) has recently visited the Kariakoo Market building project, a landmark Public-Private Partnership (PPP) initiative between the Dar es Salaam City Council's Economic and Development Corporation (DDC) and private firm Tosh Logistics Limited.
The project, valued at over TZS 36.7 billion, is set to develop a 10-storey commercial building in Kariakoo, providing space for approximately 900 vendors and promising to stimulate economic growth in Dar es Salaam's bustling central business district.
Mr. David Kafulila, Executive Director of the PPP Center, praised the Kariakoo project as Tanzania’s first to fully adhere to the newly enacted PPP Law No. 103, following every legal requirement from planning to contract signing.
“This project stands as one of the best-structured contracts we’ve seen,” Kafulila noted.
He highlighted that during the construction phase, the local private investor will contribute TZS 2 billion annually, increasing to TZS 2.5 billion each year once operations commence. Kafulila attributed this achievement to the Public Private Partnership (Amendment) Act No. 4 of 2023 , which facilitated such a milestone.
Expressing gratitude to the PO-RALG Standing Committee, Kafulila acknowledged its essential oversight role in guiding the PPP Center.
“All recommendations from the committee have been well received, and we are committed to implementing them,” he stated during the committee’s visit.
He emphasized that an effectively managed PPP system has the potential to drive national development and boost revenue for local governments.
Kafulila further explained that PPP investments enable the government to undertake large-scale projects by sharing costs with the private sector, thus freeing up public funds for other critical community development initiatives.
He also highlighted the potential of PPPs within Dar es Salaam’s local government and municipal authorities.
“If we attract private sector capital into these areas, we can make a substantial contribution to the national economy through increased trade, economic development, and tax revenue,” Kafulila observed, adding that such efforts align with Tanzania’s Third Five-Year National Development Plan to maximize impact.
The Kariakoo market project marks a significant milestone in Tanzania’s urban development, exemplifying how PPPs can mobilize resources and support sustainable economic growth across various sectors.