Government allocates Sh4.6 billion to complete Magufuli Bus Terminal amid underuse concerns
What you need to know:
- As of August 2024, a total of Sh49.8 billion had been spent, reaching 97 percent completion. Yet, despite the substantial investment, the terminal operates far below its potential.
Dar es Salaam. The Magufuli Bus Terminal, touted as one of the flagship infrastructure projects in Tanzania’s transportation sector, remains significantly underutilised despite its near-completion.
The government, through the internal revenue of Ubungo Municipal Council, has allocated an additional Sh4.6 billion to complete the terminal. However, concerns persist over whether this financial injection will address the terminal's broader challenges.
The announcement was made by the Deputy minister in the President’s Office (Regional Administration, and Local Government), Dr Festo Dugange, during a parliamentary session on August 30, 2024.
Responding to a question from Special Seats MP Janeth Massaburi, Dr Dugange confirmed that the funds would be used to finish the remaining 3 percent of the terminal’s construction, which began in October 2017 and was inaugurated in September 2019.
"The government recognises the importance of this terminal for bus owners, passengers, and traders. That is why we have allocated Sh4.6 billion from the council’s internal revenue to ensure it is fully completed," Dr Dugange stated.
The Magufuli Bus Terminal, constructed at a cost of Sh54.6 billion by Hainan International Ltd, was expected to revolutionise intercity transport in Dar es Salaam.
Of this, Sh50.9 billion was provided through a central government grant, with the remaining Sh3.6 billion sourced from Ubungo Municipal Council’s internal revenue.
As of August 2024, a total of Sh49.8 billion had been spent, reaching 97 percent completion. Yet, despite the substantial investment, the terminal operates far below its potential.
Only a fraction of the buses it was designed to accommodate use the facility, leading to significant revenue losses for the municipal council.
The municipal administration reports that Ubungo Municipality is losing more than Sh50 million each month because many buses are bypassing the terminal in favour of smaller and informal stations.
The terminal’s design includes a system where each passenger pays a Sh300 entry fee, alongside their escorts or recipients. With 70 to 90 buses opting for other locations daily, the terminal misses out on at least Sh1.4 million every day.
“Right now, the terminal is underused, which is causing us significant losses. Our strategy was to ensure all buses use the Magufuli Bus Terminal according to procedures, but this hasn’t been fully realised,” said Aron Kagurumjuli, the Executive Director of the Ubungo Municipal Council, recently.
Sources revealed to The Citizen that the bus terminal’s business operators, who once scrambled for slots, are now departing due to a lack of customers.
"It’s disheartening to see an investment of this magnitude not being utilised as intended. We need to address the root causes of this issue, even as the government plans to finish the project," one source, who sought to remain anonymous, said.
Transport and infrastructure experts have long pointed to several factors contributing to the terminal’s underutilisation. A transportation economist at the University of Dar es Salaam, Dr Simon Mndeme, believes that poor planning and inadequate stakeholder engagement are at the heart of the problem.
"The terminal was built with good intentions, but without adequate consultation with bus operators and passengers. As a result, many bus owners prefer smaller stations that are closer to their customers," Dr Mndeme said.
"The government needs to revisit its approach and consider incentives for operators to use the terminal," he added.
A political analyst and urban planner, Dr Martha Nyerere, argues that the situation at the Magufuli Bus Terminal reflects a broader issue of infrastructure development in Tanzania.
"We often see these large projects being built, but without a clear plan for how they will integrate with existing systems. The terminal’s success depends on creating a seamless transport network that benefits all stakeholders."
With the additional Sh4.6 billion allocated, the government hopes to complete the remaining works at the terminal, including the construction of basements, the third-floor passenger area, and the vehicle entrance.
However, without addressing the fundamental issues that have led to the terminal’s underuse, experts warn that the facility risks becoming a white elephant.
"The investment made in this terminal is huge, and we cannot afford to see it fail," said Dr Mndeme, adding, "The government should consider policies that encourage bus operators to use the terminal, perhaps by reducing fees or improving access routes."
The MP who raised the question in Parliament, Ms Janeth Massaburi, expressed her concerns about the future of the terminal. "It is crucial that we see this project through to its full potential. The residents of Dar es Salaam deserve a modern, efficient transport hub," she said.
