Why Mwanza looks poised to rival Dar’s economic influence

Though the economy has expended further, going by the 2023 figures, Dar es Salaam contributed 17 percent to Tanzania’s GDP.

Second-placed Mwanza, which had a GDP of Sh13.5 trillion as of 2023, contributed about 7.2 percent to the national GDP.

In the third place is Mbeya which had a GDP of Sh10.5 trillion in 2023, contributing 5.58 percent to the national economy.

With GDP sizes of Sh9 trillion, Sh8.9 trillion and Sh8.8 trillion respectively, Morogoro, Arusha and Tanga contributed 4.8 percent, 4.7 percent and 4.65 percent respectively to the national economy.

But in a bold declaration of intent during an exclusive interview with The Citizen, Mwanza Regional Commissioner Saidi Mtanda highlighted various strategies and projects that aim to make Mwanza a big contributor to Tanzania’s economy.

He expressed confidence that Mwanza’s contribution to the will surge into double digits by 2035.

“Our goal is to exceed 10 percent contribution to the national GDP,” Mr Mtanda said. “We have land, a lake with enormous resources and our infrastructure plans are solid. We are not just catching up with Dar; we want to overtake them.”

Mwanza is undergoing a major transformation. The Kigongo-Busisi Bridge, worth Sh700 billion, Tanzania’s longest, is now operational—eliminating the reliance on ferries and cutting travel time dramatically between key areas.

Next is the Sh28 billion expansion of Mwanza Airport, which will become an international hub with the capacity to serve up to 4,000 passengers at a time, up from the current less than 100.

“Planes will land directly from outside Tanzania, picking up processed meat and fish products for export,” Mr Mtanda said.

Meanwhile, the Mwanza-Isaka section of the standard gauge railway (SGR) is 60 percent complete. It will link Mwanza to the central corridor, boosting freight and passenger movement and complementing the Sh18 billion Northern Port expansion, integrating lake, land and air transport systems.

“We are building serious connectivity. The SGR, ports, airports—this synergy will redefine Mwanza as the new business frontier in East Africa,” Mr Mtanda said

Small traders in Mwanza are already seeing signs of economic rebirth. At the new Sh123 billion ultra-modern market under construction in the city, which aims to operate 24/7, excitement is growing.

“This market will be our Kariakoo,” said a small trader from Geita, Ms Rehema Salum. “We will have a secure, busy place to sell our goods and buyers from other regions and countries will have easy access.”

Fish traders, such as owner of a local fish processing plant, Mr Emmanuel Kileo, hailed the SGR and airport upgrades as game-changers.

“Exporting fresh fish to Europe will no longer require routing through Dar es Salaam. This is a huge reduction in cost and time,” he said.

Mwanza is already exporting processed meat and fish and investors in cage fishing are optimistic. The government has invested Sh4.1 billion in interest-free loans for cage fishing.

It is also clearing invasive water weeds using Sh600 million and another Sh1.5 billion is allocated for a specialised weed-cutting machine.

Regional magnet

For East Africa region businesspeople, Mwanza is gaining traction as a regional logistics and trade hub.

“Mwanza’s location is unbeatable,” said a trader from Uganda, Mr James Wafula who is in Mwanza for the official launch of the Kigongo-Busisi bridge. “With SGR and Lake Victoria shipping, we can move goods faster and more reliably than ever before.”

A Kenyan meat exporter, Mr Peter Hidar, added: “The airport expansion will help us move perishable goods efficiently. Mwanza is becoming the next big thing for us.”

The recently launched MV Mpungu ship, with a 1,000-tonne capacity, connects Mwanza and Bukoba to Uganda. MV Mwanza is also set to link directly with Uganda, reinvigorating Lake Victoria trade routes.

Infrastructure development goes hand-in-hand with improved social services. On June 20, 2025 President Samia Suluhu Hassan is expected to inaugurate the Sh71 billion Butimba Water Project, funded by AFD and the French Development Bank.

The project will supply 48 million litres of water per day, benefiting over 400,000 people.

“A city of over three million people cannot function with water shortages. This project is a lifeline,” Mr Mtanda said.

Additionally, solar electrification is underway in 23 island villages, with a Sh4.7 billion solar energy project ready to power underserved communities within a month, thus boosting the economy. Health services are also part of the transformation. A new regional referral hospital is under construction, aimed at serving thousands of people from Mwanza and surrounding regions.

Mwanza’s population is projected to hit five million in the next 10 years, mirroring Dar es Salaam’s current size. With that, the city is planning for four-lane highways, including the expansion of the Mwanza-Usagara road, to ease urban congestion and connect rural communities to trade centres.

“Dar has set the standard, but Mwanza has the potential to leap beyond,” said an economist based in Dar es Salaam, Dr Abella Ngassa. “It’s the only region with full air, rail, water and road synergy in one location.”

For Mr Mtanda, the vision is clear. “We are building the Mwanza of the future—a city that thrives economically, feeds itself and others, connects nations and uplifts every resident from small traders to international investors.”