Tanzania Seek Hotel Investors in Dodoma, Incentives Available

Tanzania’s Deputy Minister for Natural Resources, Constantine Kanyasu, has recently expressed the government’s wish to see the opening of new five-star hotels in the country’s capital Dodoma.

Although the government has been relocating offices form the commercial capital Dar es Salaam to Dodoma since 2018, increasing its relevance, the city lacks hotels with high standards to cater for high-profile officials and business executives visiting the city for business.

Despite the increased influx of visitors, there is only a handful of hotels in Dodoma-and various lodges-of which the most popular among government officials and foreign visitors is the New Dodoma Hotel (91 rooms).

To attract investments in the hospitality industry in Dodoma, the Tanzanian government said to be offering added incentives to investors.

Located in the centre of Tanzania, Dodoma has a population of 400,000 and hosts the country’s parliament. However, government offices and embassies have resisted moving to Dodoma and remain in Dar es Salaam.

In July 2016, Tanzania’s newly elected President John Magufuli announced that he will ensure the government headquarters move to Dodoma over the next five years.

In August 2019, the African Development Bank (AfDB) and the Government of Tanzania recently signed the agreement for a soft loan of USD 180 million to build the Dodoma City Outer Ring Road.

The main objective of the project is to respond to the need for improved logistics services and to cope with the expected population boom in Dodoma.

In July 2020, the government signed two agreements for the construction of the Ring Road with China Civil Engineering Construction Corporation (CCECC) and AVIC INTL also from China.