Tanzania: World Bank injects $200mln for Dodoma transport upgrade
The World Bank has approved a $200 million loan to upgrade Dodoma's transport infrastructure, supporting Tanzania's push to transform its administrative capital into a commercial hub.
The funds will kick-start the Dodoma Integrated and Sustainable Transport (DIST) project, aimed at improving roads and public transport. The initiative seeks to open economic opportunities for the city's rapidly expanding population, which is now growing at 6.4 percent a year, nearing one million residents in 2023.
Once a dusty township, Dodoma's prominence rose in 2016 when the late President John Magufuli began relocating government operations from Dar es Salaam, implementing a 1973 resolution during the tenure of Mwalimu Julius Nyerere.
Today, nearly all key government agencies are headquartered in Dodoma, accelerating urban expansion. Since 2000, the city's built-up area has grown from 11 square kilometres to 60 square kilometres in 2024, straining resources for infrastructure and services.
Despite its administrative importance, Dodoma lags behind economically. As of September 2024, its per capita GDP stood at Tsh1.9 million ($714), significantly lower than Dar es Salaam's Tsh5.74 million ($2,157), according to data from the Tanzania National Bureau of Statistics.
The World Bank, through its International Development Association (IDA), projects that DIST will benefit over half of Dodoma's residents, create 10,000 new jobs by 2030 and boost the city's economic output by at least two percent.
In addition to roads and public transport, the project will enhance pedestrian walkways and cycling lanes in the central business district and suburbs.
Implementation of the DIST project will involve several government agencies, including the Tanzania National Roads Agency, the Land Transport Regulatory Authority, the Tanzania Rural and Urban Roads Agency and the Dodoma City Council.
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