Housing development is a cornerstone of economic growth, urban development, and social transformation worldwide, especially for cities with rapid population growth, like Dodoma.
As urban populations increase, the demand for affordable housing rises significantly. According to the 2022 Population and Housing Census Report by the National Bureau of Statistics (NBS), Dodoma Region has a population of 3.1 million and a total of 836,909 buildings.
The NBS report shows that the population is projected to increase from 3,211,342 in 2023 to 5,690,472 in 2050, which indicates a rapidly increasing demand for housing in the next few years.
The capital city population has grown as a result of numerous government initiatives that have changed since the statement of President John Pombe Magufuli of July 16, 2016, which has raised demand for reasonably priced housing.
It is the city's dream to provide good, standard housing with effective services to the people, even though governments often face financial and technical challenges in delivering on their goals, especially through large-scale housing projects.
To address these
challenges, many countries adopt Public Private Partnerships (PPP) as a
strategic approach; also, this approach will help the city to achieve its goal.
Through PPP, the government provides policies, land, and incentives to the private sector. Although the private investor contributes funds, construction expertise, technology, and project management capacity.
It enables housing and building projects to be implemented more efficiently, with higher quality and timely completion.
Thus,
addressing the demands of affordable housing arising from population growth and
ensuring houses have social services like permanent water and electrical
facilities.
In particular, a report prepared by the Ministry of Housing and Urban Affairs in India explains the PPP approach used to facilitate affordable housing for the people, whereby public-owned land with legal titles serves as a key resource for private developers constructing affordable housing for people at low cost.
This helps the government ensure that public land is used effectively by reducing investment costs and increasing housing availability.
Public-private partnerships (PPPs) help expand affordable housing
by contributing land, policy incentives, and regulatory support to reduce
development costs, while private developers provide financing, construction
skills, and efficient project management.
Also, the World Bank's 2022 report explains the mode Kenya uses to ensure affordable housing in the city, in which the initiated Affordable Housing Program provides a clear example of how PPPs are applied to address urban housing shortages.
In this program, the government provides public land, financial incentives, and policy support, while private partners invest capital, construction expertise, and project management.
Major projects such as the Gatuya Housing Project and the Kahawa Wendani Housing Project show that private investors construct both mid-income and affordable housing.
This PPP model seeks to address urban housing deficits and enhance the
efficiency and quality of housing provision.
International experiences show that PPP can greatly accelerate affordable housing development in Dodoma through PPP housing projects.
Even though the Vice President of Tanzania, Doctor Philip Mipango, on 11th December 2024, launched a public servant housing scheme aimed at improving living conditions through quality and affordable housing.
The project was carried out by Watumishi Housing Investment, which has constructed
1000 modern, standard, and affordable houses, with demand expected to increase
in the next few years due to continuous shifts of people and government
activities.
To address the challenge of increased demand for houses in the next year, PPP can be a bridge to success through projects of affordable housing in Dodoma and mixed-use developments combining commercial buildings and residential units.
Also, PPP can serve as a key mechanism to incentivize private sector investment in affordable housing. However, this can be achieved by collaboration of the public and private sectors to ensure that housing projects are implemented effectively to enable optimal land use alongside affordable housing, ensuring quality and efficient land use.
PPP can help make productive use of land by
transforming it into housing development, particularly in rapidly growing urban
centers in Dodoma.
Furthermore, achieving PPP in Tanzania’s housing sector based on the appropriate risk allocation, value for money, responsibilities, and benefits between government and private-sector actors depends on the principle that each risk should be borne by the party best equipped to manage it.
Also, properly structured contracts are essential for achieving project goals, ensuring quality, cost-effectiveness, and timely delivery.
To achieve Dodoma city's dream of providing quality and affordable housing, it will adopt mechanisms such as the PPP Act and programs implemented by NHC, TBA, and local government authorities.
PPPs can increase access to capital,
reduce construction costs through operational efficiency, and enhance
private-sector participation in addressing the shortage of affordable housing.
In conclusion, global experience shows that public-private partnerships in housing and building development play a vital role in driving economic growth and development.
If Dodoma city adopts PPP strategies for housing projects while ensuring legally recognized land ownership and strategic cooperation, including policies that support private sector investment.
It will lead to achieving its dream by increasing access to affordable housing and mitigating the impacts of rapid urban population growth in Dodoma City.
The government must also strengthen land policies and title deed issuance to boost investor confidence, attract sustainable investment, and accelerate the development of good housing infrastructure.