Understanding the Envisioned “Kigamboni Automotive Zone”

Dar es Salaam, Tanzania; The Tanzania Private Sector led by the Tanzania Private Sector Foundation recently had a sit down with the Dar es Salaam Regional Commissioner Hon. Paul Makonda.

A statement released by Hon. Paul Makonda directing all car dealerships to prep to reallocate  as of January 2018 to Kigamboni in Temeke district, was received with mixed emotions. The dubbed “Kigamboni Automotive Zone” as envisioned by the RC had left many without a clear understanding of how to comply and what it entitled. TPSF sought to clear the air by inviting the private sector and the business community especially those engaged in the business of car dealerships to have a sit down with the RC.

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Hon. Makonda pointed out that during his meeting in March 2016 with 576 Village Directors (Wenyeviti wa Serikali za Mitaa), it was apparent that the appearance of showrooms and garages in every corner of the city was a nuisance. Despite that, there were also security concerns as some showrooms/dealerships were being used to dismantle stolen cars and alter their VIN Numbers, and were later put back up on the market..

The Government had sought to put an end to these unlawful acts , as well as add value to all stakeholders. The government expects the zone to be advantageous to all stakeholders; Customers could get competitive prices and reduce purchase time, Government could collect tax more efficiently, and car dealerships would have a premise to conduct their businesses which could attract even foreign buyers and  eliminate middle men (brokers), who for such a long time have not provided a level playing field. “All around the proposed automobile zone is beneficial to everybody’ Hon. Makonda pointed out.

The implementation will be done in phases with used Car Dealerships the first to go with bonded warehouses to follow and later new car dealerships. “The government as of now has set aside 750,000 Sqm and the area has a potential for expansion to up to 2,000,0000Sqm’ Mr. Makonda told his guests at the meeting.

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Also adding that adjacent to the designated area was owned by the Tanzania Port Authority and there were plans to integrate the two, which would ease offloading and avail area for parking area, transit and cargo vehicles.

The government has plans to put incentives in place to ease the transition for car dealerships, one is the selling of yards for half the current market value of the land, another is an exemption from rent for first three years, and facilitation of building permits for construction. Title deeds will be issued for those who will want to take procession of the land, of which again the government is expected to negotiate a payment  scheme to be spread over another three years.

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On his part the TPSF Executive chief Mr. Godfrey Simbeye thanked the R.C for availing time to meet and explain the envisioned concept for the “Kigamboni Automotive  Zone” but emphasized the importance of laying infrastructures and social services to support the zone.

The business delegation along with TPSF included Eng. Raymond Mbilinyi Executive Director Tanzania National Business Council, representatives from TCCIA & CTI and car dealership owners. The Government has begun receiving requests and as of now there have been a little more than 100 requests for yards at the zone.

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