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Struggling amidst modernity: Why businesses are dissatisfied with Magufuli Bus Terminal

What you need to know:

  • Small business owners lament that the reluctance of bus companies to utilize the multi-billion-shilling facility for passenger drop-offs and pickups has resulted in a dearth of customers, leading to financial losses and unfulfilled expectations

Dar es Salaam. Eda Mohamed vividly remembers the hopeful anticipation she harboured when she secured a rental space within the newly constructed Magufuli Bus Terminal in 2021.

Like many other business owners, she envisioned a thriving hub bustling with passengers, a strategic point for commerce to flourish.

However, her dreams collided with harsh reality, leaving her disheartened and disillusioned.

"For the past four years, I've been experiencing significant losses with occasional small profits," she laments, her frustration palpable.

"I wish I could find someone to sell this space to, even at a loss, because I am not getting what I expected from this location."

"It's been three days now, and I've only sold six sodas. Yesterday, only three people bought from me. Every month, I have to pay a rent of Sh90,000 for the space, along with other council levies," she explained.

Ms Mohamed indicates her willingness to enter into a partnership with someone in that space to help each other pay the rent.

"If you want, I invite you to bring your goods here so that we can support each other because there are no customers at all."

Her sentiments echo those of fellow business owners like Juma Abdi, who runs a bags and shoes stall at the terminal.

"The problem is that this terminal has become just a place for buses to pass through without dropping off or picking up passengers here, which is a loss for us," Mr Abdi remarks, his voice tinged with disappointment.

“We rely on many people who start and end their journeys here for us to serve," Mr Abdi, who pays a rent ranging from Sh100,000 to Sh200,000 monthly, explained.

The woes extend beyond individual vendors to encompass the broader business ecosystem within the terminal.

A drinks and bites business operator on the ground floor, Ms Janet Masawe, reflects on her decision to diversify into mobile money transfer services to cope with the dismal sales.

"The only business that does well here is mobile money transfers, because people need to withdraw and send money regardless of whether the bus is loading or passing by," she explains wearily.

"Moreover, another levy of Sh100,000 has been introduced by the council; we have not received any explanation for it. There are taxes from the Tanzania Revenue Authority (TRA), security fees and everything here requires money, even toilets," she explained.

Hotel and guesthouse business owners in the Mbezi Luis area, where the modern terminal is built, also regret the lack of as many guests as expected.

The narrative of unmet expectations and financial strain is a common thread among many tenants within the four-story building of the Magufuli Bus Terminal.

Despite paying rents and council levies, they find themselves grappling with dwindling customer traffic and escalating expenses.

A closer look reveals a complex web of challenges contributing to the terminal's underperformance.

An insider from the terminal's management sheds light on the significant revenue shortfall of up to between Sh50 million and Sh55 million, citing the reluctance of bus companies to utilise the terminal as intended.

This reluctance not only undermines the terminal's viability as a commercial hub but also translates into substantial losses for both businesses and the local council.

Meanwhile, the Tanzania Bus Owners Association (Taboa) raises concerns about the terminal's capacity constraints and inconvenient location, highlighting the disconnect between revenue collection objectives and customer-centric service delivery.

Taboa executive committee member, Mr Elinas Emmanuel, emphasises the need for a more holistic approach that prioritises passenger convenience and operational efficiency.

"We cannot run away from our customers. Every bus owner wishes to provide excellent service to their customers and not just satisfy tax collectors without considering where the greatest need lies," he said.

As for bus owners, they believe that conducting their businesses at the terminal, which is more than 33 km from Dar es Salaam’s city centre, is a loss and unfair to their customers.

Despite the prevailing challenges, there is a glimmer of hope on the horizon.

The Executive Director of the Ubungo Municipal Council, Mr Aron Kagurumjuli, has reassured stakeholders of ongoing efforts to address the terminal's operational deficiencies and maximise its potential.

“Discussions are underway to compel all buses to utilise the terminal fully, while expansion plans aim to accommodate the influx of buses entering and leaving Dar es Salaam,” he assured.

As stakeholders grapple with disappointments and setbacks, they remain steadfast in their quest for sustainable solutions that uphold the promise of modernity while safeguarding the interests of businesses and commuters alike.

"We are continuing discussions to ensure that all buses use the Magufuli terminal fully, to ensure that it benefits businesses at the facility,’ Mr Kagurumjuli revealed.

“At the same time, we are looking at how to expand the terminal to accommodate all buses entering and leaving Dar es Salaam.