The government plans to build a new market for small-scale traders at Kigogo Sambusa within six months, in a move aimed at easing congestion in Kariakoo and reducing disputes between street traders and shop owners.
The project will provide trading space for wamachinga as the government continues with plans for a permanent market linked to the redevelopment of the Msimbazi Basin.
Minister of State in the Prime Minister’s Office responsible for Regional Administration and Local Government, Prof Riziki Shemdoe, said construction of an embankment at Kigogo Sambusa would begin immediately, paving the way for the market’s construction by Ilala Municipal Council.
“The government wants to reduce congestion in Kariakoo. Once the embankment is completed, Ilala Municipal Council will begin building the market,” he said during a meeting with Kariakoo traders, small-scale traders and Dar es Salaam regional leaders on October 19, 2026.
“We want the area to be ready so that small-scale traders can move there and conduct their businesses peacefully,” he added.
The project will be financed through five per cent of Ilala Municipal Council’s own-source revenue, according to Prof Shemdoe.
The announcement comes as authorities seek to manage the competing needs of formal shop owners and street traders in one of Tanzania’s busiest commercial centres.
Congestion in Kariakoo has long posed challenges for businesses, shoppers and transport, while the presence of street traders has contributed to disputes over access to trading space.
However, the success of the new market will depend on whether it provides sufficient and accessible space for traders and whether they are willing to relocate from their current locations.
Prof Shemdoe directed the Permanent Secretary in the Prime Minister’s Office, the Dar es Salaam Regional Administrative Secretary and the Ilala District Commissioner to oversee the project’s implementation.
He said he would return to the site after one month to inspect progress, signalling pressure on the responsible authorities to meet the six-month deadline.
The minister also said efforts to organise traders operating in Kariakoo would continue while construction proceeds at Kigogo Sambusa. He asked the chairman representing small-scale traders in Kariakoo to cooperate with the government in the exercise.
For shop owners, the proposed market could help improve access to business premises and reduce competition over trading space. For small-scale traders, the key concern will be whether relocation offers viable business opportunities without reducing customer access or daily earnings.
Kariakoo shop owners’ chairman Severine Mushi welcomed the government’s initiative, saying traders were ready to continue paying taxes and contributing to national revenue if the business environment improved.
Steven Lusinde, chairman of Kariakoo’s small-scale traders, thanked the government for supporting access to loans for small businesses. He also called for measures to prevent bureaucracy and irregularities in allocating new trading spaces.
The project is expected to reduce congestion, improve trading conditions and ease recurring disputes between shop owners and street traders. Authorities also expect better organisation of commercial activities to support tax collection.
The government has yet to provide details on the number of traders the new market will accommodate, the allocation criteria or the expected cost of construction.
Those details will be important in determining whether the project can address the scale of congestion in Kariakoo and provide a lasting solution for traders who depend on the area for their livelihoods.