Govt unveils Sh948.5bn PPP plan to turn Sabasaba into economic hub

Dar es Salaam. The government has unveiled a Sh948.5 billion plan to transform the Mwalimu Julius Nyerere Trade Fair Grounds, popularly known as Sabasaba, into a world-class commercial, innovation, and cultural hub.

For decades, the historic grounds located along the Kilwa Road in Temeke District here, have served as a venue for the country’s international trade exhibitions.

Under the new plan, the grounds will be redeveloped into a modern, mixed-use complex to enhance the business environment, attract investment, and boost Tanzania’s global competitiveness.

The transformation will be implemented by the Tanzania Trade Development Authority (TanTrade) in partnership with the Public-Private Partnership Centre (PPPC), operating under the Ministry of Finance.

Therefore, both local and international investors are invited to participate through a PPP model.

TanTrade Director General, Ms Latifa Hamisi, said the initiative will reposition Sabasaba as a dynamic, year-round commercial and cultural destination that meets international standards.

“The current infrastructure is outdated and no longer meets the demands of today’s trade and investment landscape,” she recently told a press conference.

“This is a strategic undertaking to attract serious investors and reposition Tanzania as a regional hub,” she clarified.

Estimated to cost $322 million (approximately Sh948.5 billion), she said the project is expected to be completed before the commencement of the Africa Cup of Nations (AFCON).

The 36th edition of the biennial African football tournament organised by the Confederation of African Football (CAF) will be co-hosted by Uganda, Kenya, and Tanzania between June and July 2027.

A new economic engine

The redevelopment plan includes the construction of international exhibition centres, five-star hotels, innovation and technology hubs, office towers, residential apartments, entertainment venues, and open spaces for artistic and cultural events.

Upon completion, the site will operate around the clock, providing space for commerce, networking, leisure, and community engagement.

“This will be a high-impact economic zone. People will shop, work, attend conferences, and socialise—all in one place. It will attract investors, tourists, and innovators alike,” Ms Hamisi explained.

The new complex will feature modern infrastructure such as smart lighting, digital security systems, high-speed communication networks, and high-end accommodation facilities—bringing it in line with global trade and convention centres.

Investor selection underway

Ms Hamisi said the process of selecting an investor is ongoing, with key criteria including revenue-sharing models, technical expertise, financial capacity, and management experience.

“We are ready to commence as soon as a suitable partner is identified. Frankly, we wish we could start tomorrow,” she said, highlighting the project's urgency and anticipated economic impact.

PPPC executive director David Kafulila echoed the sentiment, underscoring the vital role of private sector involvement given the scale of the required investment.

“This is not a project the government can finance alone. We are calling on partners from all sectors to collaborate,” he said.

He dismissed misconceptions that public-private partnerships amount to privatisation.

“This is not about selling public property. It’s about using private capital and expertise to unlock value for Tanzanians. The government retains ownership of the asset,” he clarified.

Interested investors have been asked to submit documentation, including business registration certificates, company profiles, and proof of financial capacity.

Tangible benefits expected

TanTrade projects that the development will stimulate job creation, expand trade opportunities, and increase government revenues.

It aligns with national priorities such as industrialisation, youth empowerment, and market access for local products and services.

The business community has welcomed the plan, describing it as timely and transformative.

A local trader, Mr Silauli Nkinga, noted that outside the annual exhibitions, the grounds remain underutilised.

“Other than during Sabasaba, the area is largely dormant. Even when halls are rented out, the returns are minimal. This development will unlock the site’s full potential,” he said.

Mr Nkinga urged planners to prioritise showcasing locally made goods, especially agricultural produce, to benefit farmers and stimulate rural economies.

“Let’s use this space to promote Tanzanian products and empower our farmers,” he said.

A trader, Ms Elizabeth Mambo, welcomed the initiative, saying it could help small-scale entrepreneurs’ access international markets.

“TanTrade already connects us with foreign buyers. A modern commercial centre will improve visibility and access to reliable markets. I hope there will be space for us too,” she said.

Ms Mambo added that permanent business operations at the site could create sustainable jobs, especially for young people and graduates.

“During Sabasaba, many youth earn short-term jobs. This project will open up longer-term employment, keeping young people engaged in productive activities,” she said.

Experts back PPP approach

Economist, Dr Donath Olomi, described the PPP model as a sound strategy for mobilising capital and expertise.

“Public-private partnerships are not a sign of weakness—they are a sign of smart prioritization. Governments use them to stretch limited budgets across sectors like health, education, and infrastructure,” he said.

Dr Olomi said PPPs often result in improved governance due to stronger performance incentives and clearer mandates.

“Private partners bring managerial expertise and financial discipline. Governance boards under PPPs are typically more professional and focused on delivery,” he said.

Dr Olomi was echoed by his counterpart, Mr Oscar Mkude, who said PPPs reduce the financial burden on the state and enhance efficiency. However, he cautioned against delays.

“We must avoid the execution gaps seen in past projects. Once agreements are signed, implementation should follow quickly to maintain investor confidence,” he said.

Development must match national goals

Mr Mkude stressed that the project must complement Tanzania’s broader economic ambitions, including Vision 2050 and the goal of becoming a production-based economy.

“We need to go beyond flashy infrastructure and ensure that local producers are the primary beneficiaries. Otherwise, we risk creating a venue dominated by foreign players,” he warned.

He called for policies that guarantee equitable access to the centre for Tanzanian entrepreneurs, SMEs, and manufacturers.

“This shouldn’t become a space where locals are sidelined. It must drive exports, value addition, and innovation,” he added.

He also noted the need to link the trade centre with national strategies for agricultural value chains, industrial processing, and Small and Medium-sized Enterprises (SMEs) development.

“If we want to build a globally competitive economy, infrastructure must support local production. Only then will this centre realise its full potential,” he said.

Broader Implications

As Tanzania prepares to host major events like AFCON, the Sabasaba redevelopment is part of a wider effort to modernise infrastructure and strengthen the country’s role in regional trade and diplomacy.

Officials have pledged to ensure that the project benefits reach all Tanzanians—from small traders and youth to large investors and international stakeholders.

If successful, the project could serve as a blueprint for revitalising other public assets and fostering inclusive economic growth nationwide.