Investors, local and foreign, take note: Dodoma is Tanzania's emerging economic powerhouse

Dodoma. Tanzania's administrative capital, is rapidly transforming into a prime investment destination, drawing the attention of both local and foreign investors.

Far beyond its symbolic status as the seat of government, the city's burgeoning appeal is rooted in an unprecedented enhancement of its transport infrastructure, strategically unlocking its immense economic potential.

From hospitality and consumer goods to agro-processing and the service sector, Dodoma is poised for an investment boom.

The operational Dar es Salaam-Dodoma Standard Gauge Railway (SGR) has already revolutionised connectivity, slashing travel time between the commercial hub and the capital from a gruelling nine to ten hours by road to a swift three-hour train journey.

This dramatically improved access is now being augmented by the nearing completion of the Msalato International Airport, a flagship aviation hub set to open Dodoma to direct local and international flights.

Phase I of the Msalato International Airport project, encompassing the runway, taxiways, apron, security fencing, parking, and navigational lights, is 92.4 percent complete.

The second phase, involving the passenger terminal and other buildings, has reached 59.24 percent completion.

A Bombardier Q400 from Air Tanzania Company Limited (ATCL) successfully conducted a test landing on June 13, 2025, demonstrating the airport's operational readiness.

With a projected completion in November 2025, and sections to be opened even before full completion, the airport will facilitate seamless travel for business and leisure, marking a significant advantage for entrepreneurs.

Dodoma, hidden gem

The core economic secret of Dodoma, making it Tanzania's hidden economic gem, lies in its central geographical location.

Unlike Dar es Salaam, which is situated at the country's periphery, Dodoma's centrality offers a strategic advantage that promises to redefine Tanzania's economic landscape.

Businesses based in Dar es Salaam often face higher costs and longer travel times for distributing products across the vast Tanzanian hinterland.

For instance, residents of regions like Arusha, Kilimanjaro, Manyara, Mara, Mwanza, Kagera, Kigoma, Katavi, Rukwa, Tabora, Songwe, Mbeya, Ruvuma, and Njombe are geographically closer to regional hubs like Nairobi, Kampala, Kigali, Bujumbura, Lusaka, and Lilongwe than they are to Dar es Salaam.

Dodoma's central position is set to solve Tanzania's distance matrix in trade and industrial distribution.

Establishing business centres of activity in Dodoma will drastically cut the time and cost associated with distributing goods and services, as well as business travel throughout the country.

This will undoubtedly create positive ripple effects across the entire economy, fostering greater efficiency and reducing logistical burdens.

Furthermore, Dodoma's status as the fully-fledged seat of all government ministries, agencies, departments, and authorities means that the tendering process for all government contracts primarily takes place within the city.

While online tendering is available, a physical presence in Dodoma offers businesses a distinct advantage, allowing for direct engagement, networking, and immediate access to information crucial for securing lucrative government contracts.

The combination of enhanced transport infrastructure, particularly the SGR and the soon-to-be fully operational Msalato International Airport, coupled with Dodoma's unparalleled central location and its status as the administrative heart of the nation, makes it an undeniable magnet for investment.

The time to invest in Dodoma, Tanzania's strategically positioned and rapidly developing capital, is now.