Tanzania has experienced strong and rapid economic growth, with its annual GDP growth averaging around seven percent in the last decade. It is expected that this growth trajectory will be sustained with the discovery of natural gas deposits. Tanzania is urbanizing rapidly and its economic development is and will be shaped by its rapid urbanization and its emerging role as a regional hub.
The Tanzania Country Economic Memorandum 2014 emphasized the importance of cities in the economic growth of the country as they are driving the growth of non-farm businesses and can be the gateways to export markets that Tanzania needs to grow.
Improving the productivity and efficiency of Dar es Salaam is necessary to help generate businesses and create jobs in the formal and informal sectors. Doing so requires supporting strategies to increase city competitiveness and involves: (i) improving urban infrastructure and services; (ii)improving the local business environment and enhancing private sector development; and (iii) strengthening the institutional and financial systems for planning, land management, and developing the metropolitan area. In particular, the development of special zones for business would encourage agglomeration effects and address congestion costs. This can be achieved both in secondary cities and around Dar es Salaam.
Proposed development objective
The Project Development Objective is to improve urban services and institutional capacity in the Dar es Salaam Metropolitan Region.
1) Improve priority infrastructure, mainly focusing on (i) priority roads and (ii) primary and secondary drainage systems
2) Upgrading in Low-Income Communities
3) Institutional Strengthening, Capacity Building & Urban Analytics
4) Implementation Support and Monitoring & Evaluation
IIDA Funds: $300 million
Borrower’s own funds: $25.30 million
Nordic Development Fund (NDF): $5 million
Full Project Information Document (PID)
Contact Task Team Leader (contact info in the PID), contact the Netherlands embassy in Tanzania (Dar es Salaam) or contact the World Bank Liaisons at the Netherlands Embassy in Washington, DC.