Stores auction at Mwenge stand raises concerns

Dar es Salaam. Controversy has emerged about the newly constructed Mwenge Bus Terminal in Dar es Salaam after small traders raised concerns over the allocation of stores during the online auctioning process.

The Sh10.06 billion terminal and commercial centre, which has been under construction since 2020, is scheduled to start operations early next month.

It was expected to house more small traders, but the outcome of the auction proved differently when a large retail firm was awarded 60 percent of the stores, an investigation by The Citizen shows.

The move, traders who spoke to The Citizen on various occasions say, defeats the very purpose of using taxpayers’ money to construct such facilities to provide commercial space to traders who have low capital.

The Mwenge traders who spoke to The Citizen on condition of anonymity said that they had eagerly awaited the auction of these new stores, hoping to escape the high rents charged by private landlords.

“When construction of this new facility began, we were excited, expecting it to be as modern as it appeared. We also anticipated much lower rent, ranging between Sh250,000 and Sh500,000, depending on the stall’s location,” a trader said.

Their optimism took a hit when the online tendering process was cumbersome and a large business entity ended up taking more than half of all the stores. “Everything changed during the 24-hour auction for the stores, which began on October 11, 2023. The municipal auction portal was jammed, making it nearly impossible for most traders to participate, requiring assistance from IT experts to navigate,” he added.

Another trader revealed that after the auction ended on October 12, construction workers started dismantling about 40 stores that are all located on the ground floor of one of the main buildings, ostensibly to create a large commercial space to house a supermarket.

What raised eyebrows was that the works were being carried out at night.

This left the traders disheartened, as it contradicted their belief that the facility was constructed to support smaller traders.

“It’s unfair for someone to take half of the stores and leave small traders who have been here from the beginning in the dust,” expressed another trader.

In response to these claims, the head of communications at Konondoni Municipality, Mr Aquillinus Shiduki, clarified that the online auctions were conducted in line with established procedures.

He explained that there were two auctions: the first for small traders, with 37 winning tenders and receiving stores, and a second online auction for large investors. In the second auction, one single firm acquired 60 percent of all the stores.

Traders named GSM as the company that had secured the stores, although the director of investment at GSM Group of Companies, Mr Hersi Said, denied any knowledge of these claims. “I do not even know that a bus stand is being built at Mwenge. I was only aware of the new football field in the same suburb. As the person behind GSM’s investments, I am unaware of the acquisition of the stalls. There is no such thing,” he noted.

However, Mr Shiduki confirmed that GSM was the company that had acquired 60 percent of the stores.

He added that GSM was allocated the stores after duly participating and winning the second auction.

He refuted the allegations that there was a demolition of stores going on, stating that the investor was merely branding their area.

“The investor is not demolishing a part of the building as it is being claimed, but just branding his area,” he said.

The terminal is expected to begin operations on November 1 this year, Shiduki said.

Currently, authorities are in the final stages of determining commuter bus routes that will terminate at Mwenge.

The terminal will have the capacity to accommodate 100 buses, 20 tricycles, and 50 motorcycles, along with 21 resting benches.

Shiduki advised traders who missed stores at Mwenge to try their luck at the Bwawani and Magomeni markets.