However, the dealers have asked the regional commissioner to speed up construction of infrastructure in the area to create a friendly business environment.
The dealers agreed to relocate to kigamboni at a meeting between Tanzania Private Sector Foundation (TPSF), the Tanzania National Business Council (TNBC) and Makonda.
“We have agreed to relocate but we request the government to honor its promise to put up needed infrastructure in order to attract many traders and customers to access the area without obstacles,” said TPSF Executive Director Godfrey Simbeye.
According to Simbeye, the idea of moving to Kigamboni was good because it provided an opportunity to vehicle dealers to have one stop car shopping centre in eastern and central Africa.
Simbeye explained that recently TPSF held talks with the regional commissioner aimed at getting detailed information on the relocation to Kigamboni and business benefits that would accrue from the move.
TNBC Executive Secretary Raymond Mbilinyi, for his part, said his organization had accepted the regional commissioner’s directive because it was aimed at addressing congestion challenges in the city.
“We will make plans to ensure that we relocate within the scheduled time.” said Mbilinyi.
Makonda told a news conference that they has received requests from 100 showrooms that were ready to move to Kigamboni, adding that the dealers were expected to have moved to Kigamboni by January next year.
Makonda said among the benefits of the relocation was that traders will be able to display and sell their products in one centre, thus simplifying revenue collection by the Tanzania Revenue Authority which will also set up shop in the area.
Other benefits include easy control of vehicle thefts and addressing traffic challenges in the city, which caused a loss amounting to Sh. 400 million annually.
“The goal is to see Dar become the largest automobile shopping venue in Africa,” said Makonda, assuring the dealers that all the necessary infrastructure, including security, filling stations, electricity and spare parts shops would be put up in the place to facilitate business.
He added that all traders who will need space for a showroom in the area would be allotted one freely for three years, after which they would be required to pay some rental fees. They would however only be required to meet fencing and other related costs.
