Dodoma, Coast lag in incomes despite economic significance

Both regions are among the five with the lowest per capita gross domestic product (GDP) in Tanzania, according to data from the National Bureau of Statistics (NBS), as cited in the Consolidated Zonal Economic Performance Report for September 2024.

The report, released on 7 March 2025, shows that Dodoma’s provisional per capita GDP stood at Sh1.901 million by the end of September 2024, while the Coast Region’s per capita GDP was recorded at Sh1.831 million in 2023.

The regions with the lowest per capita GDPs include Singida (Sh1.711 million), Kagera (Sh1.559 million), and Simiyu (Sh1.552 million).

Conversely, Dar es Salaam, Tanzania’s economic hub, had the highest per capita GDP at Sh5.743 million in 2023.

Interestingly, Iringa, with a GDP at Current Prices of Sh5.942 trillion, ranks second in terms of per capita GDP. The region, heavily reliant on agriculture, engages a significant portion of its population in farming, livestock rearing, and related activities. Major crops include sunflower, tomatoes, and tea. Iringa’s per capita GDP stands at Sh4.816 million.

Mbeya, another agriculturally driven economy that also benefits from agro-processing, manufacturing and mining, follows in third place with a per capita GDP of Sh4.361 million.

Ruvuma, a key food basket region dependent on agriculture, livestock, fishing in Lake Nyasa, lumbering, beekeeping and trade, ranks fourth with a per capita GDP of Sh3.677 million.

Kilimanjaro, which relies on agriculture, industry and tourism, secures fifth place with a per capita GDP of Sh4.344 million.

Njombe, a region known for its production of Irish potatoes, maize, beans, timber and electric poles, ranks sixth with a per capita GDP of Sh3.705 million in 2023.

Tanzania’s tourism capital, Arusha, follows in seventh place with a per capita GDP of Sh3.667 million in 2023. Mwanza, a region reliant on agriculture, fishing and mining, also ranks seventh with a GDP per capita of Sh3.555 million. The region’s economic activities primarily include cotton farming, fishing in Lake Victoria and livestock rearing.

Manyara (Sh3.311 million), Tanga (Sh3.255 million) and Mtwara (Sh3.039 million) complete the top ten regions with the highest per capita GDPs.

Speaking to The Citizen yesterday, Dr Lutengano Mwinuka, an economics lecturer at the University of Dodoma (Udom), attributed the Coast Region’s economic struggles to underutilisation of marine resources.

“The region relies heavily on the marine economy to sustain its livelihoods, but this potential remains largely untapped,” Dr Mwinuka said.

He pointed out that outdated fishing methods persist, while opportunities such as cage fishing and value addition in seafood remain underexplored. “Progress is slow because the available resources are not being fully utilised. These regions must shift their approach to capitalise on marine opportunities,” he noted.

On Dodoma’s economic stagnation, Dr Mwinuka observed that while the city’s population has increased, agricultural productivity has remained stagnant. He emphasised the need for broader market access for farmers to maximise their earnings.

“There is also a need to explore alternative income sources rather than relying on a single sector. When product prices rise, many people suffer because their income remains static,” he added.

Meanwhile, Dr Daidi Ndaki, an economics lecturer at Mzumbe University, stated that Dodoma’s economic situation was predictable given recent land demand trends.

“In recent years, the demand for land has surged, providing municipalities with substantial revenue. However, this revenue stream is unsustainable because land is a fixed asset, meaning business from land sales cannot continue indefinitely,” he explained.

Regarding the Coast Region, Dr Ndaki noted that despite significant infrastructure development, the GDP remained low.

“The region experienced a temporary revenue boost during industrial development due to land sales, similar to Dodoma. However, this revenue is not sustainable in the long term,” he said.

Dr Ndaki suggested that the government establish revenue-sharing agreements between zones.

“For instance, the Coast Region manufactures many products that are primarily sold in Dar es Salaam. A structured agreement could enable both zones to benefit from the revenue generated by these goods,” he proposed.

The report’s findings highlight significant economic disparities between Tanzania’s regions, raising concerns about the need for targeted policies to address underperformance in Dodoma and the Coast Region despite their strategic importance to the country’s development.