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THE UNITED REPUBLIC OF TANZANIA
PRIME MINISTER’S OFFICE
REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT
ARUSHA MUNICIPALITY
FINANCING CITY INFRASTRUCTURE FOR ARUSHA
MUNICIPALITY
1.0 INTRODUCTION
 Arusha Region is one of the 23 Regions of the United
Republic of Tanzania. The Region is devided into six
Districts of Arusha Region which includes Arumeru,
Monduli, Ngorongoro, Longido, Arusha and Karatu
districts. Further, the districts formed seven Local
Government Authorities namely Meru and Arusha
District Councils (fro Arumeru District), and Arusha
Municipal, Karatu, Longido, Monduli and Ngorongoro
district councils.
2.0 Location
 Arusha Municipality is the headquarter of Arusha Region located in
northern Tanzania between latitude 2o and 6o South and longitudes
34.50 and 38 East. It has a unique character of being surrounded by
Arumeru district in all directions. It is 50 kilometers West of
kilimanjaro International Airport on the great North Road, halfway
between Cape Town and Cairo, also 6kms from Arusha Airport.
 Arusha Municipality covers an area of 208 km2 (20,800 Ha) out of
34,525 km2 (0.6%) of the total area of Arusha Region. The
allocation of land according to different activities is as follows;
Arable land 6,400 Ha, Pastures or grazing land 100 Ha, Forests &
Hills 20 Ha, Building and Playing grounds 2,600 Ha and Roads and
Rivers 180 Ha.
3.0 Climate
 The district experiences two rainy seasons in
which short rains are between October and
January, while long rains are between March and
May.
 Amount of rains in these two seasons ranges
between 500 to 1200 mm per annum, with a
mean average of 844mm.
 The temperature is characterized by warm and
cold temperatures ranging from 17 degc to 34
degc. The cold season is between mid April and
mid August, while the rest of the years are warm.
4.0 Physical Features
 Arusha Municpal is located on the southern slopes of Mount
Meru. It lies between 1,450 and 1,160 meters above sea
level.
 There are isolated hills, breaking up the gently sloping plains.
These hills includes Themi, Suye, Nemas and many others.
 The Municipality is crossed by rivers and numerous small
streams originated from the slopes of Mount Meru or on the
slopes of the above mentioned hills. Such rivers includes
Burka, Engarenaro, Naura, Themi and Kijenge, all of which
converge to join Themi River to the Southern part of the
Municipality.
 In particular the area to the South West of the Municipality
has extremely extensive black cotton soils. During dry
season it shrinks leaving cracks on the ground surface of up
to 5mm wide and 1.5 deep, on average.
5.0 Administrative Structures
 Administratively, Arusha Municipality has three
divisions namely, Themi, Elerai and Suye which
are subdivided into nineteen wards. These wards
are Kati, Sekei, Themi, Kaloleni, Levolosi,
Ngarenaro, Unga limited, Daraja mbili, Baraa,
Sokon I, Elerai, Kimandolu, Oloirien, Sombetini,
Terrat, Engutoto, Lemara, Moshono and Olasiti.
6.0 Population
 Like all other urban centres in Tanzania, Arusha Municipality faces
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socio-economic challenges arising from rapid growth of urban
population attributed by natural growth and rural-urban migration.
The high population influx to Arusha is mainly due to two reasons.
i) Arusha being a tourist town, the tourism industry has flourished in
recent years.
ii) The City is the major market for gemstones extracted from
Mererani mines.
It has the highest population density (about 3,040 people per sqkm)
in Arusha Region.
The current population projection is estimated at 476,890 people,
however, over 100,000 people comes into Municipality in day time
from neighbouring ditricts and leave in the evening.
Annual population growth rate ( 1988 – 2002 censuses) is 5.4%,
dependency ratio is 59%, sex ratio ( male for every 100 females) of
97, Average household size ( Persons per household) is 4, and
population of people with disability is 0.66%.
7.0 Tourism
 Arusha is a local and
International
tourism centre in the
northern part of Tanzania.
 It also serves as a transit point for tourists heading to the
National Parks and to the highest Mountain in Africa ( The
Kilimanjaro).
 It links to International destination through Kilimanjaro
International Aiport.
 As the northern tourism circuit, it receives the majority of tourists
to the country. There are eleven tourist hotels, 84 registered
tour operator companies and an international conference centre
(AICC).
Tourist Attractions
 Arusha Municipality is the major urban centre in the northern
Tourist circuit. The circuit is famous world wide for its ease
accessibility to: Mount Kilimanjaro, Arusha National Park, Lake
Manyara National Park, Tarangire National Park, Ngorongoro
Crater, Olduvai Gorge and Serengeti National Park.
8.0 Social Economic Developments
 The economiy of Arusha Municipality depends on
commerce, Industry, small scale Agriculture and
tourism.
Commerce and Industrial activities
contribute significantly to the GDP of the
Municipality.
 52% of employed people are in business
operations, 14% are employed in office duties,
17% are casual labourers and 11% are in
agriculture. The remaining 6% are in plant
operations and Assembly.
9.0 SOCIO – ECONOMIC Services:
 Similar to other urban centres in Tanzania, Arusha
Municipality faces socio-economic challenges
arising from rural-urban migration.
 Rapid growth in urban population which has
resulted into mismatch between population and
limited urban services.
 A large part of the Municipality’s population has
no access to basic amenitees such as clean and
safe water, proper and planned sanitation etc.
 Due to slow pace of economic growth, high
urban migration has led to high levels of
unemployment as well as under employment.
10.0 HIV and AIDS
 HIV/AIDS
continue to threaten the most
productive part of the Arusha population.
 Since 1986 when the first cases were reported,
the prevalence of HIV has been increasing,
whereby at the end of 2006 the prevalance was
found to be 14% among the VCT client and blood
donors, while among the antenatal was 7%.
 However, deaths from AIDS have decreased
following the introduction of ARVs, where 315
patients have been enrolled by 2010.
11.0 FINANCING CITY INFRASTRUCTURE
INTRODUCTION
 The basic system and services that are necessary for
Municipality to run smoothly with respect to infrastructure
includes buildings, Road network, Transport, Solid waste
diposals, Health Services, Education as well as Market places.
 Services such as power and water supplies are taken care by
Tanzania Electricity Supply Company ( TANESCO) and Arusha
Urban Water Supply & Sanitation Authority (AUWSA)
respectively, in colaboration with Municipality.
 Financing the maintenance and development of the above
noted Municipality infrastructure depends mainly upon three
major sources, these are:
i) Municipality from own revenue collection.
ii) Grants from Government of Tanzania (GOT) and
iii) Development partners.
12.0 Municipality Annual Budget for infrastructure
i) Own Source
 The Municipality is facing challenges of insufficient
funds to finance development projects, foristance in current
financial year of 2010/2011 the council has budgeted TZS 1.8
billion (USD 1.2 million) to finance Municipality infrastructure.
 Roads network
alone
required about TZS 3 billion
equivalent to 2 million US Dollas for maintenance and
rehabilitation of roads.
 The funds were to be collected from defferent revenue
sources such as parking fees , Advertisement, markets and
Bus stands fees. However, the performance did not meet the
targets due to collection challenges that resulted to late
disbursement of revenue from collection Agents, thus
affecting service delivery to the community
Annual budget……… Cont’d
(ii) Government
 Central Government contributes TZS 10.1 billion
(USD 6.7 million),
 Only 0.82 billion TZS ( 548,108 US dollar) goes to
Municipality infrastructure
 The rest TZS 9.29 billions ( USD 6.2 USD 6.2
million) is for Financing Operational costs of
Personnel Emolument (PE) as well as other
charges.
Annual budget……… Cont’d
(iii) Development Partners Funds
 Funds from different donners set for development projects
in year 2010/2011 amounted to TZS 1.9 billion ((USD 1.27
million).
13.0 Budget for 2011/2012
 The budget for development projects for the financial
year 2011/2013 increased from current of 4.3 billion (
USD 2.87 million) to TZS 23.37 billion ( USD 15.58
million) attributed by the on going project known as
Tanzania Stretagic Cities Project (TSCP) financed by
World Bank in colaboration with DANIDA.The project
worth TZS 18.87 billioni (USD 12.58 million) and will
finance the following sub projects:
(i) Rehabilitation of 14.93km of urban roads
(ii) Construction of 0.8 km storm water drain
(iii)Design and construction of landfill for solid waste
desiposal,
(iv) Installation of solar powered traffic lights.
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