The National Housing Corporation (NHC) of Tanzania has announced plans to invest Sh64.5 billion in a major redevelopment project in Arusha city centre. The project, known as Sokoine Square, aims to transform the historic streets of Arusha city centre, including Masai, Swahili, Azimio, and Sokoine streets, into a modern commercial and residential hub. The project is expected to be completed within 18 months, ahead of the 2027 Africa Cup of Nations (AFCON) finals, which will be hosted in Tanzania.
The redevelopment project involves demolishing old buildings along the designated streets to pave the way for multi-storey buildings incorporating commercial and residential facilities. According to NHC Information and Public Relations Manager, Mr Yahya Charahani, the project will significantly transform Arusha's skyline in line with the city's new master plan, which prohibits buildings of fewer than six storeys in the city centre. The project is expected to bring a major transformation to Arusha, increasing the corporation's annual revenue from Sh266 million to Sh4.8 billion.
The redevelopment project will increase the number of tenants from the previous 43 to 350, comprising 250 commercial spaces and 100 residential units. NHC had held consultations with the 43 former tenants affected by the redevelopment and reached an agreement on the relocation arrangements. The corporation granted the tenants an additional 90 days, following their request for more time, to make arrangements before construction permits were obtained and demolition work began.
To ensure a smooth transition for the former tenants, NHC Arusha Regional Manager Nistas Mvungi said all former tenants would be given priority when the new facilities became available. The corporation is communicating with representatives of the former tenants to establish their readiness to return under the new rental terms and conditions. Former business operators will be allowed to inspect the approved project designs to select premises suitable for their businesses before the remaining spaces are opened to the public.
The construction cost of the project is estimated at Sh24.5 billion, while the overall project value will reach Sh64.5 billion. NHC is committed to completing the commercial section of the project as early as possible to enable businesses to benefit from the anticipated economic activity surrounding the 2027 Africa Cup of Nations finals. The project is expected to bring significant financial benefits for both the corporation and the city.
An economic assessment of the project indicates that it will have a positive impact on the local economy. The project will create new opportunities for businesses and residents, contributing to the growth and development of Arusha city. NHC is confident that the project will be completed within the stipulated timeframe, enabling the city to reap the benefits of the redevelopment.
The Sokoine Square redevelopment project is a strategic initiative by NHC to transform Arusha city centre into a modern and vibrant hub. The project is expected to have a lasting impact on the city's economy, infrastructure, and residents. With the project's completion, Arusha city is set to experience a new era of growth and development, positioning it as a major urban centre in Tanzania.
Key points
- The project will increase NHC's annual revenue from Sh266 million to Sh4.8 billion.
- The redevelopment will create 350 new tenants, comprising 250 commercial spaces and 100 residential units.
- The project is expected to be completed within 18 months, ahead of the 2027 Africa Cup of Nations finals.
