Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316201 
Year of Publication: 
2025
Series/Report no.: 
WIDER Working Paper No. 23/25
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
The study examines Dar es Salaam's potential as a focal point for structural transformation, highlighting its emergence as a significant economic hub. Through a mixed-methods approach, the research investigates how urban development is shaped by institutional, economic, political, and spatial factors. Findings indicate a shift toward a service-oriented economy, although the informal sector remains dominant, characterized by low productivity. Key challenges include infrastructure gaps, skills shortages, limited entrepreneurial spirit, and bureaucratic inefficiencies. The political settlement, marked by the long-standing dominance of the ruling party, has both enabled and constrained transformation. To unlock Dar es Salaam's potential, a strategic mix of policies, including infrastructure investment, skills development, regulatory simplification, and support for the informal economy, is essential. Addressing these issues will enable the city to leverage its economic strengths and achieve sustainable urban development. By fostering inclusive growth, Dar es Salaam can harness its opportunities and overcome its challenges for long-term prosperity.
Subjects: 
structural transformation
informal sector
urban development
political settlement
Dar es Salaam
JEL: 
R12
C31
P00
Persistent Identifier of the first edition: 
ISBN: 
978-92-9256-580-0
Document Type: 
Working Paper

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