A Senior Officials and Experts Meeting on the Financial Performance Assessment Report for Dar es Salaam City concluded today, with the active participation of key experts from across Africa. The meeting, which brought together high-level representatives from Tanzania and beyond, aimed to review and validate the financial health of Dar es Salaam City, and to identify strategies for strengthening its fiscal space in the face of ongoing urban challenges.
The meeting was opened by Hon. Mahmoud M. Mussa, Mayor of Zanzibar City, who welcomed the experts and emphasized the significance of regional cooperation in addressing the financial challenges facing African cities. “This workshop reflects our commitment to fostering collaboration on municipal finance, and I am confident that the insights shared will benefit not only Dar es Salaam but also Zanzibar and other cities in the region,” said Mayor Mussa.
In his keynote address, H.E. Njoroge Muchiri, Deputy Governor of Nairobi City, underscored the critical importance of expanding municipal fiscal space to address rapid urbanization and the complexities of urban governance. “The DA-15 project, which we gather under today, is vital in equipping local governments with the financial tools needed to manage challenges like climate change, population growth, and economic disparities,” said H.E. Muchiri.
During the meeting, Ms. Susan Ngongi Namondo, UN Resident Coordinator for Tanzania, reiterated the need for strengthening fiscal resilience to ensure sustainable development. “Strengthening urban fiscal resilience is key to ensuring that cities can meet the needs of their growing populations and achieve inclusive economic growth,” Ms. Namondo stated.
The meeting, which was held in Zanzibar on February 13-14, 2025, focused on evaluating Dar es Salaam’s financial performance across six key dimensions: liquidity and solvency, fiscal autonomy, efficiency in revenue collection, asset management, operating performance, accounting and reporting. The financial assessment report highlighted several critical challenges, including the city’s dependency on central government transfers, high operational costs, and the need for better integration of revenue collection systems.
Several key recommendations emerged from the discussions:
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System Integration: A call for the establishment of a fully integrated, automated billing and payment system to improve revenue collection and service delivery.
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Diversifying Revenues: Recommendations to broaden the revenue base by exploring untapped sectors and reviewing existing tax rates.
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Improving Efficiency: The use of technology, such as GIS mapping, to enhance revenue collection and reduce arrears.
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Enhancing Financial Autonomy: Strengthening Dar es Salaam’s fiscal autonomy by reducing reliance on central government transfers and diversifying revenue sources.
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Expenditure Management: Recommendations to prioritize spending on high-impact activities, ensuring that essential services are adequately funded.
“We must work together to foster fiscal autonomy, improve financial management, and invest in the city’s long-term sustainability,” said Atkeyelsh Persson, Chief of Urbanization and Development Section at UNECA. “This report is a critical step toward helping Dar es Salaam navigate its fiscal challenges and become a model for other cities in Africa,” Persson added.
In conclusion, the meeting reinforced the need for continued collaboration and knowledge-sharing to drive fiscal reforms and promote resilient urban development across the continent. The final report, which will incorporate expert recommendations, is expected to serve as a vital tool for Dar es Salaam City and other municipalities in Africa striving for financial sustainability and inclusive growth.
Distributed by APO Group on behalf of United Nations Economic Commission for Africa (ECA).