By Francis Kajubi , The Guardian
NESTLED nineteen kilometers to the west of Dodoma's bustling capital, lies the vibrant suburb of Msalato. It serves as a magnet for ambitious small traders seeking their fortunes through entrepreneurial endeavors.
Attracting a diverse array of spenders from varying economic backgrounds and nationalities, Msalato, fondly referred to as "Nyama Choma" (meaning barbeque), stands as a transformational hub for at least 1,500 small traders, reshaping their lives for the better.
Msalato market which opens every Saturday from noon to 23:00hrs is attracting mostly women and youth small traders, who can’t walk back home with empty pockets.
With boisterous consumers ranging from local Tanzanian families, friends well as foreigners, mostly from China and the United Kingdom (UK), Salome Michael (38) is one of benefiting small trader, through her pickles business.
A mother to two serves an average of 80 customers every Saturday and she is generating an average 80,000/-, of which she sell one plate of pickle for 1,000/-.
"I rely on this business for a living, covering expenditure for my children education," said Michael with a smile on her face while busy preparing the pickles.
One of her children has completed secondary school education and the second is currently studying at form two.
Residing in Maili Mbili suburb, on the outskirt of Dodoma, Michael is living in a two rooms rented house of which she is paying 40,000/- a month.
"It was a friend of mine owning a liquor shop at the market who introduced me to this business ten years ago, after I abandoned by my husband who fell in love with a concubine in Singida town," she said.
Five years ago, she used to generate a maximum income of 130,000/- when the market hosted only three pickles sellers.
"As at present, there are about 14 women doing similar business. The increase has triggered stiff competition, my major challenge," said Michael.
She purchase vegetable worth 20,000/- for preparing pickles during the market day.
"But, generally, the business is working out for me. I wish that I could have created more profits, if the market was held at least twice a week," she said.
Agrippina Munishi (28) a mother of one said that she generates a maximum of 70,000/- every Saturday from the pickles business at the same market.
"I spend 15,000/- in buying vegetables for preparing the pickles. Myself and fellow pickles sellers pay a levy of 2,000/- a day," said Munishi.
According to her, she started the business two years ago and has been useful to her in generating income for household needs.
The Tanzania Revenue Authority (TRA) 2023/24 Financial Year Levies and Tax Guidebook states that businesses with annual turnover that don't exceed 4mn/- shall not be subjected to taxes, but only levies.
Munishi commended the government for creating a conducive business environment for SMEs to operate their businesses on tax-free.
Her praises to the government are in line with Article 9 (d) of the Constitution of the United Republic of Tanzania 1977 which states: "The national economy shall be planned and promoted in a balanced and integrated manner."
However, Article 9 (g) states: "The government and all its agencies accord equal opportunities to all citizens, men and women alike without regard to their colour, tribe, religion or station in life."
Amani Simon (32) a Maili Mbili resident in Dodoma City works at the market as a goat meat roaster.
Simon buys six male goats every Saturday valued at 100,000/- each.
He started the business at the market in 2021 with a capital of 200,000/- of which has grown to 700,000/-.
"I generate a maximum profit of 35,000/- per head. I pay 20,000/- for charcoal and a total of 7,000/- in levies per goat at the market," said Simon.
He said he has managed to buy a motorcycle from the profits he is getting, operating as a hail ride from Monday to Friday.
"I generate a maximum of 20,000/- in profits from the ride hailing business," said Simon.
Jackline Mosile (27) Hombolo Wine Sales Officer produced by TAWICO Limited said that doing business at Msalato market has helped the company to get 25 new bulk buyers for their produced wines from Dodoma and nearby regions.
"I do sell a maximum of 50 bottles and five gallons of wine to people coming to the market to have fun and their families," said Mosile.
She pays a levy of 5,000/- for doing the business at the market.
Baraka Vincent, a mobile money agent said that the business is even better on Saturdays than other days of the week.
Vincent said on Saturdays he serves up to 150 customers up from a maximum of 50, whom he serves on a daily basis from Mondays to Fridays.
"My investment capital has grown by 70 percent from initially 500,000/- three years ago due to many transactions I makes each Saturdays," said Vincent.
The monthly commission he receives from mobile money operators has increased by 40 percent.
But Alex John who regularly visits the market with his family blamed the shortages of mobile money agents.
"There are only two mobile money agents here and one on the other side of the road. I think this is an opportunity for people to open more mobile money shops here," he recommended.
Maulid Haji (23) a motorcycle rider at Msalato said that on Saturdays he generates up to 50,000/- from a maximum of 15,000/- he earns during Mondays to Fridays.
Alpha Emmanuel (19) is a fruit vendor said that he sell up to 300,000/- on Saturdays from around 60,000/- on a daily basis from Mondays to Fridays, from his business located at the city center.
"I started selling watermelon at the market two years ago with a capital of 200,000/- but has grown to 800,000/-. This market has contributed to 80 percent of growth of my capital," said Emmanuel.
Mariam Mussa, a public toilet supervisor at Msalato market said that on Saturdays she generates up to 70,000/- in charging 200/- per person going for the service.
"On normal days, I hardly earn only up to 12,000/-. Water consumption from DUWASA is worth less than 30,000/- a month," she said.
Isaya Augustino Sales Officer at Msalato Livestock Market said that at least eight cows and 70 goats are slaughtered every Saturday to feed the people coming to the Msalato market to have fun.
Brown Kyando, Wamwiduka Band Manager said that the band formed by four male singers has been regularly going at the market to refresh visitors by singing traditional songs.
According to him, the group earns an average of 150,000/- every Saturday from money given by people who enjoy their music.
"Sometimes we make up to 200,000/-. We are using this market as a platform for self-employment. We don't pay any levy for that," said Kyando.
Kyando asserted that Msalato market has helped the group in receiving invitations for wedding and other ceremonial functions where it generates a maximum of 250,000/- per event.
Devotha Selufara, Msalato Ward Executive Officer, said that businesses at the market flourish during the harvest season between late April and late August every year.
Selufara acknowledged that during the National Assembly meetings, up to 6,000 people are visiting the market.
Without revealing the exact figures, she said the government has been earning a little revenue collections from the market in levies paid by small business owners.
She said that three women groups formed by a maximum of ten members each were in 2022 and 2023 assisted by her office to access non-interest soft loans from the Dodoma City Council through the 10 percent special groups’ economic empowerment window.
She mentioned the three SME special groups from the Msalato Ward as Msalato Dadas which received 20m/- and Msalato Academy which received 25m/-.
"The two women SME groups were issued the loans for growing their soft and alcohol drinks businesses at the Msalato market;
The third group is Nyasileta which was issued with 30n/- for a sunflower cooking oil processing project," said Selufara.
According to her, all SMEs groups have successfully repaid their loans.
The ten percent non-interest loans sourced from the district council revenues account that got suspended in the first quarter of the 2023/24 financial year due to allegations on funds embezzlements and the existence of ghost SMEs special groups, will resume in July this year.
Mohammed Mchengerwa, the Regional Administration and Local Government State Minister in the President’s Office (PO-RALG) revealed the resume of the SMEs loans window in the National Assembly recently when tabling the ministry’s budget estimates for 2024/25 tuned at 10.125trn/-.
He said the ministry has in the current financial year set a target of 43.77bn/- that is outstanding from SMEs who borrowed from the special groups.
To begin with, the ministry has selected ten district councils for testing a new model of issuing the loans that will be conducted through commercial banks, he said, listing the pilot units as two cities, two municipal councils, two town councils and four district councils.
Mchengerwa asserted that the remaining 174 district councils will follow the procedures after learning from experience of the selected places, he said.
The model will be adopted in 174 districts after several improvements that include setting up special groups’ loan management departments at PO-RALG and the formation of loan management committees at various levels.
They will be set up at regional and district commissioners’ offices as well as ward chairmen’s offices, he said, hinting at any amendments to the SMEs special groups’ loans legislation and its regulations.
The ministry will also undertake capacity building efforts for loan officers and recruit loan recovery officials for the special groups at the ward level, he stated.
“At this early stage already 777 community development officers have been hired to take up tasks set out in the changes,” he added.
This is the case when Section 37(A) of the Local Government Finance Act Cap 290 R.E 2019 instructs local government authorities (LGAs) to allocate ten percent of their revenue collections for extending non-interest loans to women, youth and people with disabilities through special groups’ economic empowerment schemes.
The Controller and Auditor General (CAG) 2022/23 report on local government authorities’ states that 62 LGAs failed to fully contribute the ten percent of their domestic revenue collections to the Women, Youth and People with Disability Empowerment Fund.
“Total uncontributed domestic revenue collections amounted to 7.27bn/-. However, after the assessment, I found that 94 LGAs had issued loans worth 38.81bn/- to special groups without taking into account the proportion of loan disbursement,” states CAG Charles Kichere.
The CAG added that during the audited 2022/23 financial year unrecovered loans from the SMEs special groups amounted to 79.76bn/-.
The Population and Housing Census 2022 results by the National Bureau of Statistics (NBS) state that Msalato is one of the 41 Wards forming the Dodoma City Council.
It states that the Ward is formed by three streets namely Senje, Chikole and Msalato.
"Msalato Ward has a population of 12,905 people with 6,564 women. It has 3,384 households," reads part of the NBS report.
NBS further asserts that Msalato Ward has three primary schools and two secondary schools.
Nsubi Bukuku, Msalato Ward Councilor, said that upon completion of the ongoing Msalato International Airport project, it is expected that it will stimulate business at the market.
“The market will serve as an immediate reception for domestic and foreign people visiting the city for government issues and tourism;
As part of a way forward plans are to expand the market areas but it will remain as it is in terms of maintaining ordinary infrastructure because people want it that way,” said Bukuku.
The Msalato International Airport Project Master Pan by the Tanzania National Roads Agency (TANROADS) shows that the airport ongoing construction is financed through concessional loans acquired from the African Development Bank (AfDB) and the African Development Funds.
The other financer is the African Growing Together Fund (AGTF). The continental financiers are collectively extending a concessional loan valued at $238.06 million.
However, the central government contributes a stake of 91.41bn/- in construction of the airport with a capacity of handling 1.5 million passengers a year. The airport construction has as of February this year accomplished by 35 percent.
The airport’s runways, car parking lots, fence, the clean water and sewage system are constructed by M/s Sinohydro Corporation Limited.
The Master Plan document shows that the passengers’ lounge, fire and rescue station, electricity system and are being constructed by M/s Beijing Construction Engineering Group Limited and the M/s Heber Construction Group Corporation Limited.
The project consultation is being handled by M/s Beza Consulting Engineering Plc, M/s Ambicon Engineering Limited and M/s Afrisa Consulting Limited.
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