The inside story of deserted, idle ‘white elephant’ markets

Dar es Salaam. Several multi-billion-shilling markets meant to elevate small-scale traders by shifting them from informal spaces are now gathering dust across the country, The Citizen can report.

From Dar es Salaam to Dodoma, many of these investments are largely deserted, leaving local authorities with idle assets and businesses with unfulfilled promises of growth.

The ambition behind these markets was clear – to improve infrastructure, formalise trading spaces and boost income generation for both traders and municipal councils alike.

Yet, many of these markets now stand as white elephants, symbols of poor planning, ineffective engagement with stakeholders and missed opportunities.

Take the Kijichi Business Centre in Temeke, Dar es Salaam, for example. Being an investment of over Sh3.9 billion under the Dar es Salaam Metropolitan Development Project (DMDP), it was envisioned as a bustling hub for traders and buses heading to southern regions.

Instead, it is now deserted. A trader selling water at the centre said, “I decided to stay here because I had nowhere else to go after being relocated, but there are no customers here for sure.”

The situation at the Kijichi Business Centre is not unique. The Job Ndugai market in Dodoma, which cost Sh14 billion and Bwawani Market in Kinondoni, built at Sh1.2 billion, share similar fates.

Traders who once occupied the stalls have move out, citing reasons such as high operating costs, poor customer traffic and lack of strategic planning.

At Bwawani, bed-sheet trader Felician Msofe explained, “There are no customers, which is why our colleagues decided to leave and look for other areas.” Without a steady flow of customers, traders are left with no option but to relocate or convert their stalls into storage spaces.

Despite the current under-performance, local authorities maintain optimism. According to an official at the Kijichi Business Centre, the area will eventually become useful as Dar es Salaam expands.

“We believe that in the future, everyone who ran away will return at a higher cost because the city is growing,” said the official, who asked not to name named, said.

Similarly, in Dodoma, a leader at the Job Ndugai Market believes the market will serve its intended purpose as Dodoma’s population grows. “The market will gradually become profitable as Dodoma grows,” he said.

This hopeful outlook is not without merit, but it raises the question: Should we continue pouring resources into projects that are not generating immediate returns, or should we rethink how these spaces can be better utilised in the interim?

President Samia Suluhu Hassan recently acknowledged the problem during a national meeting, stating that many newly built markets remain empty. Her practical solution? “Convert them into wedding halls or alternative venues that can generate income in the meantime.”

This suggestion highlights a more flexible approach to urban planning, where infrastructure is not rigidly tied to its initial intended purpose.

Urban planning expert Juma Kabete supports this notion, suggesting that markets can be re-purposed to suit the needs of the community while authorities strategies to attract more traders and customers.

“In cities like Nairobi and Addis Ababa, authorities have found creative uses for markets that initially didn’t perform well. Some have become community centres or event spaces while waiting for the local economy to catch up with the infrastructure.”

What went wrong?

Experts point to several reasons for the failure of these projects. One of the major oversights, according to urban economist Ahmed Kibwana, from the College of Business Education (CBE), is the lack of stakeholder involvement.

“This tells you that traders were not properly consulted during the planning phase. Markets were built in areas that are not suitable for trading or do not have adequate infrastructure to support business activities.”

Additionally, the imposition of high taxes and charges on traders from day one has only exacerbated the problem.

“The traders need time to establish their businesses before they start paying taxes,” says business analyst Sarah Mtaki. “It’s unreasonable to expect businesses to thrive immediately in an environment where customer flow is uncertain.”

Moreover, the failure to consider transportation routes has proven fatal. In Bwawani Market, traders have called for bus routes to pass by the market to bring more foot traffic.

“We asked for bus routes and wholesale businesses to be brought here, but nothing has been done,” says one trader.

Globally, modern markets have thrived in cities with well-thought-out planning and strong stakeholder engagement. For instance, in Kigali, Rwanda, the Kimironko Market is an example of a well-planned urban market that caters to both locals and tourists.

What sets it apart is its strategic location near residential areas and the integration of transport links that bring steady customer flow.

Similarly, in South Africa’s Cape Town, the Old Biscuit Mill, initially an underused market space, was transformed into a vibrant hub by combining market stalls with entertainment and restaurants.

It draws in crowds not just for trading but for leisure, creating a diverse economy around the market.

“The success of markets in other African countries is due to meticulous planning and constant engagement with stakeholders,” says Mr Kibwana. “If Tanzania wants its markets to thrive, authorities must ensure they are built in locations with high demand and make them attractive to customers.”

Importance of properly planned markets

Urban markets are not just trading centres; they are vital to the growth of informal businesses, offering traders a platform to formalise and scale their operations.

When planned correctly, markets can be powerful engines of economic development. They provide job opportunities, support local agriculture, and help circulate money within the community.

However, poor planning can turn these potential goldmines into financial burdens. “Every city needs well-planned markets,” says Ms Mtaki.

“They are crucial for small businesses to thrive, but only if there is a clear strategy on how to attract customers and support the traders.”

To avoid the increasing number of white elephant projects, local governments must change their approach. Instead of focusing solely on infrastructure, there must be a comprehensive plan that includes business development, transport infrastructure, and customer engagement.

As President Samia suggested, re-purposing under-performing markets in the short term can help recoup some of the investments while authorities find long-term solutions.

Meanwhile, experts have advised that future projects should involve traders in the planning process and be built in areas with proven customer demand.

“We need to think about markets as dynamic spaces that serve the needs of the people, not just as physical buildings. Flexibility and continuous engagement with traders and customers are key to their success,” he concluded.