Page 64 - U4SSC Compendium of practices on innovative financing for smart sustainable cities projects

13 Urban development - Muhange cross-border market (Tanzania)

Size of investment: USD 0.53 million

Start date: 2018

End date: 2020

Project stage: implementation

Project partners

• Public Partners:

o Kakonko District Council (KDC)

o United Nations Capital Development Fund (UNCDF)

• Private partners:

o Two village communities (contributed land as equity in line with the public, private, community
partnership (PPCP) ownership model used for the project)
o Local Traders Association (acted as private entities due to civil society organizations lacking
strong establishment in Tanzania and lacking a mandate to carry out profitable business
activities)

o Women Association/Cooperatives (also acted as private entities)

Project description

The Muhange cross-border market is expected to serve approximately 3 000 traders, farmers and
livestock keepers and service providers, and to bring a number of positive impacts into the Kakonko
District Council (Tanzania), Cancunzo Province (Burundi) and beyond.

Over the years, the markets in Muhange have been attracting traders from neighbouring wards,
divisions and districts, including from the hinterland catchment about 200 km from both countries.
The products and services traded include livestock, poultry, cereals, horticulture, construction
materials, textiles, foods, beverages, and informal local currency exchange.

The market has been growing due to improvements in road infrastructure from Kakonko town
to the market site. The road on the Burundi side is accessible all year long and the East African
Community was encouraging its Member States to strengthen their cross-border markets in order
to enhance border security.

52 Compendium of practices on innovative financing for SSC projects | January 2023