6/20/2017

Prepared by: Charles Mkalawa (PhD)

June, 2017
Abstract
This proposal has been developed with aim of improving Dar es Salaam city from
slums to Real Estate. Dar es Salaam by itself is making more than 70% of informal
settlements and slums with poor or no access to sewage, power supply, storm water
drainage, and sanitation. The main causes of slums are; lack of Master plan to
coordinate Dar es Salaam urban growth with low speed of planning in relation to
land demand for housing. Some other causes include; rural urban migration, poverty,
and presence of unplanned and unoccupied land with no protections.
The identified areas of the project are part of Mwananyamala kwa kopa , Mikocheni
A Bonde la Mpunga , Msasani ,kawe, mbagala, Gongo la mboto, Kiwalani
,Magomeni, Manzese, Mburahati, Mabibo, Kigogo, Ukonga Keko, Yombo
,Kitunda, Kivule, Makongo, Goba ,Wazo, Tandale, Vingunguti , Sandali and
Kiwalani.
This write-up have proposed some options discussed on section 3 of this proposal
highlighting alternative and approaches which will suit the implementation of the
project.
This write-up have also highlighted some few best practices case studies of Brazil,
Kenya, Casablanca and Morocco.
This proposal is proposing an approach of using multi-disciplinary stakeholders to
integrate with residents and work together as the best methodology which will avoid
gaps and challenges during and after implementation.
The proposal has identify some potential areas and organization which can fund the
project so that this idea will be practical. The details about funds is discussed on
section 9 of this proposal.
Regardless to foreseen challenges the anticipated result of this project include; the
city with improved access to sanitation, power supply, decent housing and
affordable, access to storm water, sewage and improved mobility.

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Table of Contents
Abstract .......................................................................................................................................................... i
1. Introduction ........................................................................................................................................... 1
1.1 National Initiatives to Reduce Informal Settlements and Economically Empower the Poor ........... 2
1.1.1 Urban Housing Programme ...................................................................................................... 2
1.1.2 National Sites and Services and Squatter Up-grading Programme .......................................... 2
1.1.3 Sustainable Cities Programme .................................................................................................. 3
1.1.4 Community Infrastructure Upgrading Programme................................................................... 3
1.1.5 Unplanned Urban Settlements Regularization Program .......................................................... 3
1.1.6 Property and Business Formalization Programme ................................................................... 3
1.2Slums meaning concepts and their causes .......................................................................................... 4
1.2.1 Slums: Some Definitions ........................................................................................................... 4
1.2.2 Definition of a Squatter Settlement: ......................................................................................... 4
1.2 Real Estate and Real Estate Development .................................................................................... 5
1.3 Challenges facing Slums ............................................................................................................... 6
1.4 Causes that create and expand slums ............................................................................................ 6
1.5 Rationale why should slums upgrading program should be introduced ....................................... 7
1.6 Vision ............................................................................................................................................ 8
1.7 Strategies ....................................................................................................................................... 8
1.8 Project Goals and Objectives ........................................................................................................ 8
1.9 The Gap of knowledge .................................................................................................................. 8
1.10 Importance of Slum upgrading program ...................................................................................... 9
2. Conceptualization ................................................................................................................................. 9
2.1 The Difference between slums and Real Estate .......................................................................... 11
2.3 Proposed Areas ........................................................................................................................... 13
3. Options of the Real Estate Development ............................................................................................ 14
4. Case Studies of Good Practices .......................................................................................................... 18
4.1 Participatory slum upgrading programs (PSUP) ......................................................................... 18
5. Integrated land use and Real Estate .................................................................................................... 22
6. Dar es Salaam Demographic Profile: .................................................................................................. 22
7. Dar es Salaam Demographic Profile: .................................................................................................. 22
5.1 Spatial distribution of population ................................................................................................ 24
7.2 Age structure of population......................................................................................................... 26

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 7.3 Socio-Economic Profile of Dar es Salaam .................................................................................. 26
7.4 Legal Framework: ....................................................................................................................... 26
7.4.1 Policies .................................................................................................................................... 26
7.4.3 Acts ......................................................................................................................................... 26
7.4.4 Guidelines ............................................................................................................................... 27
5.5 Institutional Framework: ............................................................................................................. 27
7.7 Infrastructure: .............................................................................................................................. 28
8.1 Stakeholders to be involved ........................................................................................................ 29
8.2 Assess the Internal Environment................................................................................................. 31
A. Considering private Real Estate developers , the following aspects should be described to the
extent possible ......................................................................................................................................... 31
8.3 Evaluate and Diagnose Key Problems ........................................................................................ 31
8.4 Benchmarks and Performance Indicators: .................................................................................. 32
8. Activities to be Conduted.................................................................................................................... 32
8.1 Proposed Interventions/ Technical Approach ............................................................................. 32
8.10 Land Development Plan .............................................................................................................. 35
9. Finance and Economics ...................................................................................................................... 36
9.1 Cost Estimation ........................................................................................................................... 36
9.2 Quantifying Benefits ................................................................................................................... 36
9.3 Financial and Economic Analysis ............................................................................................... 37
9.4 Mobilization of Funds ................................................................................................................. 37
10. Implementing the Plan .................................................................................................................... 37
10.1 Introduction ................................................................................................................................. 38
10.2 Develop the Implementation Plan ............................................................................................... 39
10.3 Policy Advocacy ......................................................................................................................... 39
References ................................................................................................................................................... 40

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List of Tables

Table 3-1: Difference between Slums and Real estates .............................................................................. 11

Table 1 -3-1 List of Criteria's ...................................................................................................................... 21
Table 1-5-1: Dar es Salaam population trend and projection ..................................................................... 22
Table 5-2: Population density historical trend ............................................................................................ 24
Table 5-3 Fiscal Parameters between central Government and LGAs ....................................................... 29
Table 5-4: Problems and issues of slums .................................................................................................... 32
Table 7-5 benchmarks and performance indicators .................................................................................... 32

List of Figures
Figure 3-1: Slum Areas Dar es salaam........................................................................................................ 13
Figure 5-1: Population trend in figures ....................................................................................................... 23
Figure 1-5-2: Dar es Salaam population projection .................................................................................... 23
Figure 5-3: Dar es Salaam population density ............................................................................................ 25
Figure 10-1: Implementation Plan .............................................................................................................. 38

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From Slums to Real Estate
Prepared by: Charles Mkalawa (PhD) June, 2017

1. Introduction
The earliest slum upgrading projects in Africa were sponsored by the World Bank and US
AID,(Sumila Gulyani & Ellen M Bassett, 2007) These projects, which took place in capital cities
and larger secondary cities, were envisioned as housing projects and were intended to provide a
large quantity of affordable units in cities experiencing the most chronic housing shortages(Karimi,
2016). These early projects were expensive and ambitious covering large geographic areas and
serving large proportions of the target city's population. The Senegal Sites and Services Project,
for instance, planned to produce serviced plots for 152 000 people in two Dakar
neighborhoods(Sumila Gulyani & Ellen M Bassett, 2007). Zambia's First Urban Project
encompassed fourteen settlement areas and affected almost half of Lusaka's population(Sumila
Gulyani & Ellen M Bassett, 2007).
Dar es Salaam city, the business center and the most populated city of Tanzania with 20% of the
national GDP, Is keeping on growing spatially without improvement of infrastructures and
housing(Mkalawa & Haixiao, 2014). There is big shortage of housing in Dar es Salaam and this
have been caused by: lack of current master plan to coordinate urban growth(Sumila Gulyani &
Genevieve Connors, 2002), rapid population growth, rural -urban migration and high rise demand
of housing(UN-HABITAT, 2008). The status shows that the current rate of informal settlements
has escalated to 70% of the entire city(Peter Ngau & Achieng, 2012).
Most of the city areas have been developed without a plan of land use causing them to end up into
slums(UN-HABITAT, 2008). There is wide areas where people live in slums with poor or no
accessibility to road water services, sewage. This areas include part of Mwananyamala kwa kopa
, Mikocheni A Bonde la Mpunga , Msasani ,kawe, mbagala, Gongo la mboto, Kiwalani
,Magomeni, Manzese, Mburahati, Mabibo, Kigogo, Ukonga Keko, Yombo ,Kitunda, Kivule,
Makongo, Goba ,Wazo, Tandale, Vingunguti , Sandali and Kiwalani. The map ( Figure 2-1)
Attached.
With slums problem, there are number of challenges which has raised up in the city include:
criminal cases, mobility problem, poor distribution or lack of services, land shortage in abundance
and lack of decent housing(Fernanda Magalhes & Francesco di Villarosa, 2012; Laura Jaitman
& Jos Brakarz, 2013; UN-HABITAT, 2007).
This proposal is brought forward to propose the idea of improving the aforementioned areas from
slums to real estates by proposing the number of options described on section 3 of this proposal.

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1.1 National Initiatives to Reduce Informal Settlements and
Economically Empower the Poor

The Government of Tanzania has over the years developed various policies and programmes to
address the problem of informal settlements.
The initiatives include:
The Urban Housing Programme of 1969, National Sites and Squatter Upgrading Programme
(1972- 1990), Sustainable Cities Programme initiated in 1992, Community infrastructure program
Infrastructure Upgrading Programme (2003-2012), Unplanned Urban Settlement Regularisation
Program was conceived in 2004, and the Property and Business Formalisation Programme also
initiated in 2004.
Development of the initiatives has been largely informed by both global and national policy
commitments on informal settlements, such as the Millennium Development Goals, National
Vision 2025, National Strategy for Growth and Reduction of Poverty (NSGRP), National Land
Policy of 1995, and the Human Settlement Policy of 2000 .

1.1.1 Urban Housing Programme

In 1969, soon after attainment of the countrys independence from colonial rule, the Government
of Tanzania adopted a slum clearance policy, which saw replacement of informally built
housing with decent constructed by the National Housing Cooperation (NHC).

1.1.2 National Sites and Services and Squatter Up-grading Programme

Between 1972 and 1990 the government, with support from the World Bank, implemented the
National Sites and Services and Squatter Up-grading Programme as an alternative to the slum
clearance. The programme was implemented in three phases covering seven major regions. In the
first phase, urban settlements in three regions were upgraded and 8,800 houses improved.
In the second phase, four additional regions were covered and 15,811 houses upgraded. The third
phase was entirely financed by the government and covered Dar es Salaam Region (Tanzanias
commercial capital) where a total of 7,000 plots were surveyed and 8,103 houses mapped for
upgrading.

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1.1.3 Sustainable Cities Programme In 1992, Sustainable Cities Programme was launched
and became operational in 1993. The main objective of the programme was to build capacity of
the Dar es Salaam City Council to plan, coordinate and manage urban development and growth,
with emphasis on improved multi-sectoral coordination and participation. Based on the successes
of the programme, its implementation was rolled out to seven other regions countrywide.

1.1.4 Community Infrastructure Upgrading Programme

The Community Infrastructure Upgrading Programme (CIUP) came into force in 2003 with the
objective of improving living conditions of low income residents of unplanned settlements by
upgrading the existing infrastructure and services, and facilitating their participation in the
planning, provision and management of infrastructure services in their respective areas. The
project was implemented in two phases. The first phase (2003 2008) was funded by Government
and the second phase (2008-2012) by the World Bank. However, the CIUP did not include a
regularization scheme and there was no enhance of security of tenure. Consequently, the Ministry
of Lands, Housing and Human Settlements Development (MLHHSD) introduced urban
formalization and regularization of unplanned settlements in2004, in collaboration with local
government authorities.

1.1.5 Unplanned Urban Settlements Regularization Program

The Unplanned Urban Settlement Regularization Program was conceived in 2004 soon after
implementation of the CIUP began. The program primarily focused on identifying and
adjudicating properties in unplanned areas and issuing residential licenses. The licenses were
accepted by financial institutions and helped some owners to access credit though limited loan
amounts due to the short period of the residential Licence (2 years). However, the need for more
secure and accessible property rights remained largely unmet. Currently the security of tenure to
residential Licence is not guaranteed by government therefore cant be accepted for mortgage.

1.1.6 Property and Business Formalization Programme

The Property and Business Formalization Programme, commonly known by its Kiswahili
acronym, MKURABITA was initiated in 2004 with an aim of establishing a unified legal and
institutional framework that recognizes secured and accessible property rights, as an important
stepping stone into a wider range of economic benefits available in the formal market.
Implementation of the programme began in July 2008 after a successful diagnosis of the extralegal
in 2004/05 and subsequent reform design between January 2006 and June 2008.
The programme seeks to facilitate formalization of property and business assets in the extralegal
sector, into legally held and formally operated entities in the formal sector of the economy. The
ultimate goal is to economically empower property owners in the informal sector whose entry in
the formal market economy will enhance their opportunities to use their assets to access capital
and thus improve national economic growth and reduce individual household poverty.

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1.2Slums meaning concepts and their causes

1.2.1 Slums: Some Definitions

UN-HABITAT defines a slum household as a group of individuals living under the same roof
in an urban area who lack one or more of the following:
1. Durable housing of a permanent nature that protects against extreme climate conditions.
2. Sufficient living space which means not more than three people sharing the same room.
3. Easy access to safe water in sufficient amounts at an affordable price.
4. Access to adequate sanitation in the form of a private or public toilet shared by a reasonable
number of people.
5. Security of tenure that prevents forced evictions.
Not all slums are homogeneous and not all slum dwellers suffer from the same degree of
deprivation. The degree of deprivation depends on how many of the five conditions that define
slums are prevalent within a slum household. UN-HABITAT analyses show that Sub-Saharan
Africas slums are the most deprived; over 80 per cent of the regions slum households have
one or two shelter deprivations, but almost half suffer from at least two shelter deprivations.
Approximately one-fifth of slum households live in extremely poor conditions, lacking more
than three basic shelter needs. Generally, the lack of sanitation and water in the regions slums
is compounded by insufficient living space for families and inadequate, makeshift housing. In
the diagrams below, even though any one of the above five conditions are used to identify
slums, only the first four contribute to a definition of those who suffer from shelter deprivation.
Though lack of security of tenure is one of the conditions in most slums, it is not directly related
to an assessment of shelter conditions.

1.2.2 Definition of a Squatter Settlement:

A squatter settlement therefore, can be defined as a residential area which has developed without
legal claims to the land and/or permission from the concerned authorities to build; as a result of
their illegal or semi-legal status, infrastructure and services are usually inadequate. There are
essentially three defining characteristics that helps us understand squatter settlement: the
Physical, the Social and the legal with the reasons behind them being interrelated.
Physical Characteristics:

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 A squatter settlement, due to its inherent "non-legal" status, has services and infrastructure below
the "adequate" or minimum levels. Such services are both network and social infrastructure, like
water supply, sanitation, electricity, roads and drainage; schools, health centres, market places
etc. Water supply, for example, to individual households may be absent, or a few public or
community stand pipes may have been provided, using either the city networks, or a hand pump
itself. Informal networks for the supply of water may also be in place. Similar arrangements may
be made for electricity, drainage, toilet facilities etc. with little dependence on public authorities
or formal channels.
Social Characteristics:
Squatter settlement households belong to the lower income group, either working as wage
labour or in various informal sector enterprises. On an average, most earn wages at or near the
minimum wage level. But household income levels can also be high due to may income earners
and part-time jobs. Squatters are predominantly migrants, either rural-urban or urban-urban.
But many are also second or third generation squatters.
Legal Characteristics:
The key characteristic that delineates a squatter settlement is its lack of ownership of the land
parcel on which they have built their house. These could be vacant government or public land,
or marginal land parcels like railway setbacks or "undesirable" marshy land. Thus when the
land is not under "productive" use by the owner, it is appropriated by a squatter for building a
house. It has to be noted here that in many parts of Asia and Africa, a land owner may "rent"
out his land for a nominal fee to a family or families, with an informal or quasi-legal
arrangement, which is not however valid under law.

1.2 Real Estate and Real Estate Development

Real estate development, or property development, is a multifaceted business process,

encompassing activities that range from the renovation and re-lease of existing buildings to the
purchase of raw land and the sale of developed land or parcels to others. Real estate developers
are the people and companies who coordinate all of these activities, converting ideas from paper
to real property. Real estate development is different from construction, although many developers
also manage the construction process.

Developers buy land, finance real estate deals, build or have builders build projects, create,
imagine, control and orchestrate the process of development from the beginning to end. Developers
usually take the greatest risk in the creation or renovation of real estateand receive the greatest
rewards. Typically, developers purchase a tract of land, determine the marketing of the property,
develop the building program and design, obtain the necessary public approval and financing, build
the structures, and rent out, manage, and ultimately sell it.

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Sometimes property developers will only undertake part of the process. For example, some
developers source a property and get the plans and permits approved before selling the property
with the plans and permits to a builder at a premium price. Alternatively, a developer that is also
a builder may purchase a property with the plans and permits in place so that they do not have the
risk of failing to obtain planning approval and can start construction on the development
immediately.

Developers work with many different counterparts along each step of this process, including
architects, city planners, engineers, surveyors, inspectors, contractors, lawyers, leasing agents, etc.
In the Town and Country Planning context in the United Kingdom, 'development' is defined in the
Town and Country Planning Act 1990 s55.

1.2.1National Initiatives to Reduce Informal Settlements and Economically Empower the Poor

The Government of Tanzania has over the years developed various policies and programmes to
address the problem of informal settlements.
The initiatives include:
The Urban Housing Programme of 1969, National Sites and Squatter Upgrading
Programme (1972- 1990), Sustainable Cities Programme initiated in 1992, Community
infrastructure program Infrastructure Upgrading Programme (2003-2012), Unplanned
Urban Settlement Regularisation Program was conceived in 2004, and the Property and
Business Formalisation Programme also initiated in 2004.
Development of the initiatives has been largely informed by both global and national policy
commitments on informal settlements, such as the Millennium Development Goals, National
Vision 2025, National Strategy for Growth and Reduction of Poverty (NSGRP), National
Land Policy of 1995, and the Human Settlement Policy of 2000.

1.3 Challenges facing Slums

Lack of clean and safe drinking water
Substandard housing structures
Poor road network
Lack of water borne toilets
Lack of storm drainage facilities
Lack of waste management facilities and services
They lack educational and health facilities

1.4 Causes that create and expand slums

Ruralurban migration.
Urbanization.
Poor house planning.

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 Colonialism and segregation.
Poor infrastructure, social exclusion and economic stagnation.
Informal economy.
Poverty.
Politics.
Poor speed of planning in relation to land demand
Shortage of Affordable Housing Units
Availability of Idle Land
Economic Hardships

1.5 Rationale why should slums upgrading program should be introduced

Physical upgrading of slums with street networks and improved access to municipal basic services
through augmentation of physical infrastructure has proven to make formidable positive social and
economic changes in many cities. Socially, upgraded slums improve the physical living conditions,
improve the general wellbeing of communities, and strengthen local social and cultural capital
networks, the livelihood generation opportunities, quality of life, and access to services and
opportunities in towns and cities. In many instances, processes to improve security of tenure
conditions are started.

Economically, upgraded slums trigger local economic development, improve urban mobility and
connectivity and integrate an enormous economically productive sphere into the physical and
socioeconomic fabric of the wider city.

In sum, slum and informal settlement upgrading becomes part of a town or cities broader urban
vision to enact the right to adequate housing and living standards for all by focusing on the role of
housing at the center of quality of life and thus policy action.

Cities and towns thus have the duty to mobilise action towards improving housing conditions in
slums as a means of meeting a basic human need. To achieve this, local participation has proved
to be pivotal in galvanizing partnerships that catapult communities to address immediate needs
within their locale. Participation can be turned into a powerful instrument to mobilize low income
communities around the land challenges, urban planning, management and governance issues of
their city neighbourhoods, provided that the participation is perceived to meaningful to them,
empowers them and improves their daily lives.

For this reason, participation is often most effective when initiated at the neighbourhood level
through individual or community projects which are relatively limited in scale and developed
progressively with outcomes which are achieved in the short, medium and long terms. The search
for solutions should be done by understanding security of tenure and land management
arrangements, participatory housing design, with a specific focus on the dwelling needs and
aspirations of the urban poor and vulnerable groups, including women-headed households.
Likewise, there is an urgent need to develop practical tools, knowledge resources and expertise in
designing environmentally sustainable and affordable green building solutions.

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Housing is an opportune and strategic setting through which achievement of mutually beneficial
goals of climate change mitigation and adaptation, as well as of sustainable urban development in
general is feasible. The planning of residential areas, slum upgrading and urban renewal will help
reduce the ecological and carbon footprint of cities and the greenhouse gasses of the national
building sector.

1.6 Vision
The vison of this proposal is to see the city of Dar es salaam manage to reduce amount of slums
significantly by the year 2035.

1.7 Strategies
To use the Public private partisanship (PPP) approach on awareness, rising campaign,
compensation acquisition, and implementation of real estate projects on the identified areas.

1.8 Project Goals and Objectives

Proposal is written to bring forward the following ideas:
1. To identify slums areas of Dar es Salaam city
2. To identify major challenges which the city of Dar es salaam has encountered due to the
problems caused by slums and seeks to harmonize with local and national stakeholders on
key slum upgrading projects through creating a network for local, country level and
regional slum upgrading challenges..
3. To conduct a meeting with Real Estate stakeholders and bring up a discussion on strategies
and funding Options of slum settlement and upgrading through the use of good governance
and management approaches, pilot projects, and contributing to policy development and
the implementation of institutional, legislative, financial, normative and implementation
frameworks.
4. To propose the solutions that can be used to combat slum problem in the city of Dar es
salaam and apply it in some other cities in the coming future.as well as creating slum
upgrading projects by creating a network for local, country level and regional slum
upgrading challenges.
5. To prepare implementation strategies and recommendation over the overriding problem of
slums.

1.9 The Gap of knowledge

The aforementioned projects were mainly focused on providing security of tenure and
financing they fail to address the specific issue of planning to meet the human needs on their
settlements the important needs which need to be mainly address are: Waste management
facilities and services, water borne toilets, comprehensive road network, standard
housing structures, clean and safe drinking water, educational and health facilities. This
is the subject matter of this proposal to revert the aforementioned needs as main objective of

8
 the research using PPP approach to develop real estate from slums using provided options
analyzed on coming section of this proposal.

1.10 Importance of Slum upgrading program

Access to improved housing through enabling conditions and slum upgrading,
developed in an inclusive and integrated manner, will contribute to reducing social
inequalities and strengthen drive towards sustainable urbanization in many
developing economies. It will also have a range of additional impacts such as
strengthening security of tenure conditions for many, improved public space,
livelihood generation, belter basic services and urban safety. Indeed, smart and
productive urban centers of the future will be those in which slums or pockets of
urban socio-economic exclusion are turned into vibrant neighborhoods that are fully
integrated into the citys fabric and urban management systems, rather than
remaining as vast islands of informality, social exclusion, poor housing and
underdevelopment.

2. Conceptualization
Activity / Measure Steps Required Benefits Implications

Optimize slums Spell out the major Duplication avoided All areas with slums identified
causes of slums Gaps identified ,analyzed and a comprehensive
Identify the areas with All slum areas identified plan prepared
slums in Dar es salaam

Integrate with Rationalizing and team Better utilization and A better and networked team
other land uses and building and designing improvement of slum being identified and
real estate of the slum areas. areas. established
Stakeholders Identify donors
Organizing funds and
budget

Optimize areas Advocating the slum Improved accessibility to

with slums malfunction. slum area.
Earmarking slum areas Improved commercial Enforcement mechanisms
of the city. speeds and other real would be required
estate activities. Resistance from some quarters
Reduction in number of would have to be overcome
criminal case.

Improve slums Areas with better Adequate access to

areas services and safe water
accessibility Capital investments
established required

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Activity / Measure Steps Required Benefits Implications

Adequate access to Livelihood of small

sanitation and operators needs to be
infrastructure considered
Better structural
quality of housing
Access
Secured residential
status

Consider Best Seek modern Land Increased service

land use Design use with improved provision
accessibility and Reduction in The capital cost of house
features that allow criminal cases and design, plan preparation,
all sections of out bursting diseases but through proper
society to use them planning this could be
offset by increased
patronage.

Consider Consider alternative Maximization of setting of public services

proper land use house structures revenue and profit has implications on slum
System and select most Optimization of areas
suitable houses operations
Lobby government Reduction
to implement environmental
recommendation pollution
Provide benefits to
certain social groups

Empower the Institutionalizing Consumer feedback This task needs to be

Real Estate and consultation would lead to undertaken carefully with
Land use mechanisms with improvement in an effective consultation
citizens. quality of service process
Install an effective Greater consumer
procedure to satisfaction and
address land use and hence increased
real estate issues. patronage

Enforce The enforcement agencies This would lead to This would require intensive
Regulations to take strict enforcement better Real Estate consultation with the
Effectively measures and Land use enforcement agencies
development
It would provide a
level playing field

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 Activity / Measure Steps Required Benefits Implications

for all the service

providers

Improve Personnel efficiency Land services would This move may encounter
Internal within the organization to be improved both resistance from the personnel of
Efficiency of the be improved. qualitatively and the organization.
System quantitatively
Better real estate
and land use design
practices to be
evolved

Use Information Identifying processes Operating cost There may be opposition from
Technology which lend themselves to reduced staff for fear of displacement
Information Technology Better planning of
slums and also help It is necessary to re-
Re-engineer the in exercising better engineer the processes
processes in order to control before any attempt is
make them made to computerize
computer friendly them

Increase Non Tapping the real Additional revenue The revenue generation
land revenue estate potential of at virtually no extra models should be
property. cost carefully planned.
Focusing on There are legal problems
advertising associated with such
Revenue measures which need to
Working with be addressed properly
dedicated clients

2.1 The Difference between slums and Real Estate

The slums differ with real estate in high degree of accessibility and services
provision. Below Table 2-1 is the list showing difference between slums and real
estate.
Table 2-1: Difference between Slums and Real estates

The following are characteristics of slums and Real Estates.

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 Slums are associated with poor sanitation due to lack
of proper garbage and sewage disposal
Many of houses in slums are semi - permanent.
Houses in slums are very cheap since they are of poor
quality and also due to low income of people living in
slums
Slums are associated with high crime rate
Houses in slums are very close to each other and are
unplanned
Slums do not have enough supply of water and power
due to their location on the edge of cities
Many people living in slums are unemployed
There is problem of overcrowding in slums
Real state associated with better sanitation with proper
sewage and garbage management systems.
Most of the houses and structures are permanent
Houses in real estate are durable and expensive since
they are of high quality and accommodating high
income residents
Security is high around the real estate environment
with security light and security detection devices
Good scenery houses with uniform space from one
building to another
Real estate are comprehensively connected with
services include: power, water, sanitation and sewage
system.
Many residents living in real estate are employed
No overcrowding problem in real estate
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2.3 Proposed Areas
The map Figure 2-1 has indicating the areas which are currently facing slum problem. This proposal
is proposing this areas to be given a high priority basing on phases. The proposed areas are
including: part of Mwananyamala kwa kopa , Mikocheni A Bonde la Mpunga , Msasani ,kawe,
mbagala, Gongo la mboto, Kiwalani ,Magomeni, Manzese, Mburahati, Mabibo, Kigogo, Ukonga
Keko, Yombo ,Kitunda, Kivule, Makongo, Goba ,Wazo, Tandale, Vingunguti , Sandali and
Kiwalani. As mentioned on Section 1 of this proposal. This proposal is also proposing the phases
of implementation which is divided into four period of time.
Figure 2-1: Slum Areas Dar es salaam

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3. Options of the Real Estate Development
Table provides a summary options

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Options Description
Option A Definition : Re-housing involves the demolition of
the
Rehousing shacks and resettlement into new housing
(Relogement) Units assigned to the former inhabitants at
affordable prices, typically in 4-5 story apartment
blocks.
Average cost per beneficiary household (60m 2) as
initially envisioned: USD 16,500.
Planned State subsidy per household: (one-third)
USD 5,500.
In practice, the cost of a re-housing unit in
Casablanca
is estimated at USD 21,666.
Households are expected to pay their share and the
state will provide a subsidy to cover the difference.
Option B Definition:
Re-sitting involves the demolition of the shacks
Resetting and relocation to another site with newly serviced
(casement) plots and basic infrastructure assigned to slum
dwellers.
There are two types: either the plots provided are
fully serviced, or partially serviced at a minimum
cost. Families are
Responsible for building their houses on these
plots. In addition, some plots are designed to be
Acquired jointly by two households (bi-household)
Advantages
The land is usually provided at
no cost to the developer
Housing units are sold at
construction cost, or well below
market prices (sometimes at
one-third of the market price
creating an immediate equity
position of up to two-thirds of
the total market value for the
household).
Households are expected to pay
part of the land development
costs and move voluntarily.
Most are given housing plans
and building codes to which
they are expected to adhere.
The developer provides
standard plans for a two or
three-story house, where the
bottom floor is usually for
commercial use and the next
two floors for residential use.
Cost and Income sources
(i) cross-subsidization from the
few housing units sold to higher-
income clients
(ii) Financial contributions from
private land owners who recover
their land and/or state-owned
entities recuperating their land.
The cost of a re-sitting unit is
estimated at USD 12,000 in the
case of a bi-household to be
divided between the two
households) and USD 11,000 for a
mono-household.
Planned State subsidy per
household USD 3,437.
15
Options Description Advantages Cost and Income sources
while others are to be acquired by one household For those who resist relocation,
(mono-household). a negotiation process starts
between the developer and the
household. It is required that
the shack be first demolished
before acquiring the new plot
and starting the construction.
This lag makes the transition
difficult.
Re-sitting is planned as a
mixed-income development,
where the small plots for the
poor are
Cross-subsidized by larger plots
sold at market rate to higher-
income families.

Option C Definition: Re-structuring refers to on-site In Restructuration only, there is The cost of a re-structuring a unit
upgrading on existing settlements, including no previous requirement to in Casablanca is estimated at USD
Re-structuring services offered in situ acquire the land, which 3,283.
(Re-structuration) (Water, sanitation, electricity, and roads) and un- significantly reduces the overall Planned State subsidy per
crowding most populated areas. cost of this type of slum household USD 2,062
This is the least disruptive option. This consists of upgrading.
improving the infrastructure while allowing the
residents to remain on their plots. It was initially
envisioned to apply this method to 29% of
participating households or 70,000 of them

16
Options Description Advantages Cost and Income sources
Option D Typically, a single housing solution or a The choice of which path to
combination of two of them is assigned to a whole take should be based upon a
Housing option slum or sections of a slum. The solution chosen is consensus of all stakeholders
based on land, technical, and social considerations, including the slum
which depends on the specific context of each city communities,
and slum.
The criterion is not always explicit and it is usually
not easy to understand what justified the choice of
re-logement,
re-casement or re-structuration
.

17
4. Case Studies of Good Practices
4.1 Participatory slum upgrading programs (PSUP)
The PSUPs approach is grounded on its emphasis on integrating slum dwellers into
the broader urban fabric and adopting a positive stance towards slum dwellers and
in-situ slum upgrading, using city-wide participatory planning methods. African,
Caribbean and Pacific (ACP) Member States have joined the programme with the
aim of addressing the challenge slums and improving living standards of urban poor
by adopting the integrated strategies and systemic change fronted by the PSUP as
well as benefit from inter-regional technical exchange achieved in each others
efforts.

PSUP thus:

-provides key tools to address the challenge of slums and prevent the proliferation of new ones,
-provides a positive practical experience of inclusive integrated slum upgrading through which
all stakeholders learn key lessons and feel confident to adopt participatory planning in other
upgrading and planning processes,
-institutionalizes partnerships and improved governance arrangements
-equips government with key financing mechanisms for slum upgrading including mechanisms
to engage and empower slum dwellers themselves,
-delivers relevant, community led improved infrastructure to slum dwellers
-empowers key urban actors, especially slum dwellers themselves, to contribute to the
incremental eradication of urban poverty at community, city-wide and national levels.

4.2 Casablanca Morocco

Sources of financing
The financial mechanism includes a combination of public funding, financial contributions from
slum households (either cash or through loans), and a variety of other complementary sources
(municipalities, private land owners, etc.). In Casablanca(Anne Baverel, 2008), the breakdown of
sources of funding, regardless of the slum improvement housing solution chosen is the following:
Subsidies: 35.5%
Self-financing: 35.5%
Cross-subsidization: 23.3%
Municipalities: 0.9%
Others: 5%

4.3 Kenya

18
Toi Market, Kibera is an example of how communities can use their saving for loaning and
business development.

It comprises of poor people who lack access to decent and affordable shelter, basic services,
employment or good income. Majorities are regarded as squatters who occupy land that is either
owned by the government, local councils or private individuals.

Lessons learned from the above practices are:

When communities unite through the saving schemes, they can tackle their own problems without
waiting for handouts from anyone.
They have power and the members to negotiate and make governments listen to them.
Daily savings can assist in reaching the poorest
Confidence among communities has improved and they are now able to raise awareness on
specific issue concerning their needs and rights.
Poor people can be their own advocates
Through sharing of information, communities can avoid wasting time and making costly mistakes
The practices leave communities with a wealth of experience
Communities learn that information is power
The practices promote good leadership values, honesty, trust, transparency and accountability
When the government collaborates with communities and N.G.O's, it amounts to broader
understanding and acceptance of community driven process in their own settlements and at the
national level.
The practice also teaches that you do not have to be a University graduate to do research.
Networking makes information decimations simple and efficient
It assists communities gather together in large groups to learn and do things which they cannot
do as individuals.

City Country Good practice Exampes

Casablanca Morroco An increase in affordable housing stock to meet

the demand
A smart tax on cement production to finance
a large portion of the program
Public-private partnerships with private
developers
Fogarim credit guarantee mechanism
Retail platforms or one-stop-shops
Bank/MFI partnership
Nairobi Kenya When communities unite through the saving schemes,
they can tackle their own problems without waiting for
handouts from anyone.
They have power and the members to negotiate and
make governments listen to them.
Daily savings can assist in reaching the poorest
Confidence among communities has improved and
they are now able to raise awareness on specific issue
concerning their needs and rights.
Poor people can be their own advocates

19

Municipality Brazil
of Rio de
Janeiro.
Planned
To reach, by the end of the project, 56,000
families in 52 favelas and 17 lot divisions that
previously had no access to the services (logic
frame).
(a) Urban and social Infrastructure (i) Basic
sanitation: 100 percent of dwellers served with
access to water, a sanitary system, and pluvial
drainage net. Estimation: 425 km of water
mains; 430 km of sewer mains; 232 km of
drainage networks. (ii) Street paving and
public lighting: To pave 100 percent of the
main streets and 80 percent of the secondary;
to provide 100 percent of the main streets, and
60 percent of the secondary streets with public
lighting. To install 11,132 lighting points. (iii)
Geological risks: To eliminate or mitigate the
principal geological risks in 100 percent of
favelas. (iv) Social equipment: Each favela
must have at least 1 daycare center, or another
form of child care, to care for children from
infancy to 4 years old, and 1 sports field. To
install 49 daycare centers and 69 sports fields.
(b) Community development actions (i)
Community participation in planning and
execution: 100 percent of families of each
community contacted and invited to participate
in the programs activities, of which 50 percent
Through sharing of information, communities can
avoid wasting time and making costly mistakes
The practices leave communities with a wealth of
experience
Communities learn that information is power
The practices promote good leadership values,
honesty, trust, transparency and accountability
When the government collaborates with communities
and N.G.O's, it amounts to broader understanding and
acceptance of community driven process in their own
settlements and at the national level.
The practice also teaches that you do not have to be a
University graduate to do research.
Networking makes information decimations simple
and efficient
It assists communities gather together in large groups
to learn and do things which they cannot do as
individuals.
Performed
75,796 families reached in 62 favelas and 16 lot
divisions;
(a) Urban and social Infrastructure (i) Basic
sanitation: 96 percent of dwellings in the areas
with finished works have access to water and 90
percent have sanitary services. Water mains: 398
km; sewer mains: 411 km; drainage networks:
209 km. (ii) Street paving and public lighting:
9,890 lighting points installed and functioning.
(iii) Geological risks: 100 percent of risks
eliminated or mitigated in the urbanized area. (iv)
Social equipment: All the favelas have at least 1
daycare center and a sports field.
39 daycare centers and 51 sports fields installed.
(b) Community development actions (i)
Community participation in planning and
execution: The community participated in all the
phases of the project.
(ii) Educational actions in support of the projects,
maintenance of the sanitary and social
infrastructure, environmental protection and
conservation:
The indicator makes part of the group of 10
researched variables. The average for the 38
communities, for all the variables, was 6.4, the
minimum 4.6, and the maximum 8.0.
20
 will participate at least once in meetings and (iii) Installment of support centers (POUSOS) to
other community activities. (ii) Educational bring technical assistance to the communities
actions in support of the projects, maintenance during the consolidation phase: In progress: 18
of the sanitary and social infrastructure, percent of favelas supported with POUSOs (11
environmental protection and conservation: installed and operating).
75 percent of dwellers consider that the
maintenance and sanitary conditions of
communities, during and after the program,
improved.
(iii) Installment of support centers (POUSOs)
to bring technical assistance to the
communities during the consolidation phase:
POUSOs installed in 70 percent of favelas and
meeting the urbanistic orientation demand. To
establish 12 POUSOs (ISDP). Obs.: 70 percent
would be the equivalent to 43 POUSOs.
(c) Land-titling regularization: (i) 100 percent
of favelas and lot divisions will be declared as
special social interest areas, 6 months after the
works conclusion. (ii) 100 percent of projects
for alignment and public spaces, recognized 6
months after the end of the works. (iii) 100
percent of dwellings in the favelas and lot
divisions registered in the property tax cadaster
12 months after the works conclusion

Table 1 -4-1 List of Criteria's

Reliability Availbility
Designed sanitation,sewage,power and water Access to sanitation,sewage, bus servcies
systems on selected neighborhoods power and water
Safety Intergartion
Criminal and offesnive rate on slum areas Intergration of land use for real estate
development
Information
Availability of up-to-date information

21
 5. Integrated land use and Real Estate
The focus should be on compiling information concerning the following:
5.1 The External Environment
Socio-Economic Profile of the of Dar es salaam (Mwanza, Dodoma, and Arusha)
Demographic Profile of Dar es salaam
Projections
Real Estate /Planning Regulatory Framework
Institutional Framework
Dar es salaam City Development Perspective

The following will be also put on attention; The Real Estate Development Environment
which includes:

Housing size and accessibility

Housing Patterns
Land uses (including residential ,commercial ,institutional and conservations )
Description of Real Estate System (area size, description of the Real Estate developer
NHC,TBA, Others )
Strengths and Weaknesses of the Real Estate developers
Description of Other Service Providers by Mode
Residents Perspective on Real Estate Services
Role of Citizens Groups.
Evaluation of Existing housing types

6. Dar es Salaam Demographic Profile:

City population and the historical trends and projections
Dar es salaam city population has connection with history of its origin started from
1947(please refer Table 1-7-1&Figure 7-1 ) it started with 50,765 people in 1947 with
1450 km2 then escalated to 6,000,000 it is projected to reach 9,000,000 in 2020.(Figure
1-7-2 & Table 7-2) and that time Dar es salaam will be megacity(with 10,000,000
population)

7. Dar es Salaam Demographic Profile:

City population and the historical trends and projections
Dar es salaam city population has connection with history of its origin started from
1947(please refer Table 1-7-1&Figure 7-1 ) it started with 50,765 people in 1947 with
1450 km2 then escalated to 6,000,000 it is projected to reach 9,000,000 in 2020.(Figure
1-7-2 & Table 7-2) and that time Dar es salaam will be megacity(with 10,000,000
population)

Table 1-7-1: Dar es Salaam population trend and projection

1948 1952 1957 1967 1978 1988 2002 2012 2017

22
 50,765 72,330 93,363 272,821 843,090 1,377,201 2,487,288 4,364,541 6,000,000
Source (Nbs.go.tz)

Figure 7-1: Population trend in figures

Figure 1-7-2: Dar es Salaam population projection

23
5.1 Spatial distribution of population
4. Dar es Salaam is a leading city with a highly pupation density of 3500 km2. Number of
areas within 10 km from city center are occupied with a high population density of more
than 12,000 peoples per km2.

These areas include Tandale, Ndugumbi, Manzese, Magomeni, Ubungo ,and Kimara With the population
density of (54,781, 36,841,35,254,24,400,11482,5602,4004) respectively. Also along Uhuru road in
Buguruni, Ilala, and Gerezani (kariakoo) with population density of 23528,15541,7276 respective. Along
Ally Hassan Mwinyi with streets, of Upanga ,Hananasif kindondoni, Mwanyamala ,Makumbusho,
Kijitonyama, Mikocheni (6,738,18557,10619,25280,34047,14533,4118 Respective ).Along Sam Nujoma
;Sinza, Ubungo, Makongo, (13,515,5,602,4866 respective)along Kilwa Road; Kurasini, Miburani, Mtoni,
Azimio, Mbagala and Kiburugwa (4,365,11,073,14,845,38,416,17,527,19,727 Respective)and lastly
Nyerere Road Keko, Changombe, Temeke, Sandali,Vingunguti, Kiwalani, Kipawa, Ukonga and Gongo la
Mboto(35163,6434,8632,17553,26737,20573,4945,8003,4776 respective).

Table 7-2: Population density historical trend

Year 1957 1967 1978 1988 2002 2012

Density 67 195 605 988 1786 3133

(km2)

24
Figure 7-3: Dar es Salaam population density

25
7.2 Age structure of population
Dar es Salaam city population structure youth is dominant population as big number of people
is are aged between 20 years to 25th where most are not employed and most of them are either
at school or looking for employment(UN-Habitat, 2014).
The city demographics assist with macro-level transport planning. Since it is good indicator of
the need of decent housing to support clear land use connectivity and mobility in the city y.
With this case slum upgrading to real estate is good since its comprehensive and well organized
and can fit with population density with housing demand. The population census has reported
the increase of people around the city metropolitan and provide the justification of the
restructuring housing and infrastructures.

7.3 Socio-Economic Profile of Dar es Salaam

The demographic data should be supplemented by socio-economic data. Therefore, In

estimating the demand for public transport is important ,Since Dar es salaam is the city
with high density which can no longer operate on private car causing serious congestion
in the city it has staged into 54,000 per around km2 in Mburahati,, Ndugumbi and Manzese
please see Figure 1-7-2
The average income of the residents is under one dollar, therefore t is very difficult to
afford and meet their daily necessary needs including transport. Public transport is the only
affordable means of mobility in the city though is not provided up to the quality.
However, this proposal is providing preliminary information on the proposal stage but
more comprehensive information will be collected during socio economic studies before
project implementation.

7.4 Legal Framework:

The regulatory environment for urban public transport is laid down in various Tanzanian laws,
regulations, policies and executive orders. Being a Republic, all of them are National wide used.
Real Estate figure in in most of the lists below. The policy focusing on Tanzania real esate is still
on pipe line.

7.4.1 Policies
National Human and settlement policy 2000

7.4.3 Acts
Unit Title Act, No 16 2008

26
The Mortgage Financing (Special Provisions) Act No. 17 of 2008
The National Housing Corporation Act. Cap 295

The Architects and Quantity Surveyors _Registration_ Act. Cap 269

Land Act no 4 and 5 of 1999

Town Planning Act no 8 of 2008
Tanzania Building Agent Act

7.4.4 Guidelines

Cooperative and real estate development guidelines

Urban Planning (Space Standards) Regulations under review

Real Estate Development regulatory authority

5.5 Institutional Framework:

The most important institutional framework for controlling Real Estate Development is
also created under the National Housing Corporation Act. Cap 295,
This law creates a hierarchy of institutions Ministry of lands, National Housing
Corporation, Tanzania Building Agent, and Real Estate Developers

Most of the city residents are developing the houses on private basses .by saving their
income for house development. There are some procedures which are under supervision of
municipal government which should be followed before house development. This include
asking a permit from municipal authority of your respective area. In this link in respective
there are some other institutions which are also involved.

The institutions involved are:

Local municipal government (Ilala,Kinondoni,Temeke,Ubungo,Kiagamboni) provides
building permit and services include access road , detail design for clean water sewage
system , storm water drainage system and land use.
Dar es salaam city development authority discharges town planning functions
DAWASCO, DAWASA for implementation of the project relate to sewage and clean
water.
Ministry of works transportation and communication responsible for some roads
Ministry of lands , Dar es salaam City Planning Authorities responsible for city
planning
NEMC enforcing emission norms
labour department enforcing the labour laws
Tanzania Revenue Authority imposing and collecting taxes

As the Task Force constituted for improving the real estate development services would
have representation from all these agencies, it should be straight-forward to ascertain the
exact role of each. This will help in the distribution of responsibilities once the
improvement plan was prepared.
Ministry of lands, Municipals and Dar es Salaam City Planning Authorities: The real estate
development agents has to be a part of the city development plan. In practice, it has been

27
 found that the city development plan often overlooks the real estate development
requirements. Therefore, the city development plan needs to be prepared with consideration
of housing and the transport plan prepared in accordance with it. If it is found that the city
development plan is making land uses planning difficult, the city development plan may
have to be suitably modified. The details of the city development plan, also referred to as
the CDP (Comprehensive Development Plan) are available from the City Development
Authorities.

7.7 Infrastructure:
Infrastructure: The operation of Real Estate system is dependent on the road infrastructure. In a
city, the road infrastructure is provided by different agencies, such as the city government, the
Ministry of works, transportation and infrastructure development through TANROADS and the
Dar es Salaam City Development Authorities. Besides housing, different land uses require different
types of infrastructure Commercial, institutional, recreational, housing estate, residential and
industrial require properly designed sidewalks, road crossings; cyclists require bicycle tracks;
Information on all these will help in ascertaining the bottlenecks in the system, which need to be
addressed. Information about the following parameters would be particularly useful:
Road right of way, length, bottlenecks.
Facilities for pedestrians, cyclists and other modes of transport.
Existing plans for expansion/upgrading of these facilities.

8. The Fiscal Regime:
(Figure 7-3) the financial viability of Real Estate development operations is a major issue. By
and large, Real Estate development services in the country are not financially viable. Although
viability can be improved by increasing efficiency, there are limits to any such improvement.
A major component of the cost is the Donor funds, taxes and levies of the Union, State and
local governments. The activities of a Real Estate development, whether in the public or private
sector, are subject to donor funds and taxes by various agencies.

The donors which are possible to contribute on this project include:

World Bank for Grant funds

Tanzania Investment Centre with Donors
Un-Habitats with SUIP Project
National Social Security funds (LAPF, NSSF, and PSPF)
The Estate Developer Agencies

The important levies are:

Taxes related to capital acquisitions
Tax on land acquisition (Stamp Duty-levied by the State Government)
Property tax (levied by the Tanzania Revenue Authority)
Tax on acquisition of movable property i.e., the houses
Value Added Tax (Tanzania Revenue Authority)
Central Excise (Tanzania Revenue Authority)
Customs Duty in case of imports (Tanzania Revenue Authority)

28
 Table 7-3 Fiscal Parameters between central Government and LGAs

Parameter Central Government cases Local government cases

Legal framework The NHC and TBA are strong units of Real Estate Government does not
development is by large their responsibility enjoy the autonomy. Real
Estate development does
not fall within city
government which has led
to diffused responsibility
and multiplicity of
agencies
Effectiveness of The regime is generally that of compliance with rules and Enforcement of laws and
enforcement measures laws rules is generally not strict
Institutional framework Generally houses are privately operated and very few Generally houses are
competition with NHC and TBA privately operated and
very few with NHC and
TBA
Financial support Generally the Donor and grants covers the viability gap Generally the, Donors
,Grants national
Government covers the
viability gap
Taxation scenario Real Estate is not taxed at a reasonable rate There are few taxes on
Real Estate development
Socio economic High per capital incomes allows Real Estate development Low per capital income
conditions contribute raise
settlements to slums
City development Land use within the city is not well-defined Land use within the city is
mixed and heterogeneous
Diversity of Real Estate Real Estate development is by and large homogeneous Real Estate development is
development very diverse

8.1 Stakeholders to be involved

Stakeholder to be involved and their interest

29
SN Name of stakeholders Interest Impact
to
project
Primary stakeholders
inhabitants Shelter +
Clean water, sewage, sanitation, power and access
Income
Tenure security
Local Government leaders Lobbying ,Vote ,income ,services +/-
Women and Children Tenure security ,services ,shelter and security +/-
Ilala Municipal Council Revenue ,policy implementation ,Planning and income generation +
Temeke Municipal Council Revenue ,policy implementation ,Planning and income generation +
Kinondoni Municipal Revenue ,policy implementation ,Planning and income generation +
Council
Dar es salaam city Council Tax collection ,advocacy ,initiate planning +
National Housing Real estate development, +
Corporation Rent collection
Policy implementation
Investment opportunities
Ministry of lands Policy development +
Research
Monitoring and evaluation
Advocacy
Planning Approval
Secondary stakeholders
Ministry of works transport Policy development +
and communication Research
Monitoring and evaluation
Advocacy
Planning Approval
Regional Administration Policy development +/-
and Local Government Research
Monitoring and evaluation
Advocacy
Planning Approval
Tanzania Building Agency Policy implementation +
TBA Advocacy
Local Real Estate Real estate development +
Developers
Social Security funds Security fund saving +
Institutions Investment on real estates
Local banks Funding +
Profit
Academic & Research Research +/-
institutions

30
SN Name of stakeholders Interest Impact
to
project
NEMC Policy implementation +/-
Research
External stakeholders
World Bank Donor +
UN-Habitats Research +/-
Donor
Policy evaluation
Interest group Policy evaluation +/-
Advocacy
Lobbying
UNPD Advocacy ,policy evaluation +/-

8.2 Assess the Internal Environment

It is also important to describe and understand the housing industry structure. Any planned changes
will impact directly and indirectly on the owners, managers and personnel, and on other
stakeholders. Improvements will need to be financed, managed and implemented by the agencies,
operators and other stakeholders. Failure to understand the participants, their relationships and
their capacities is a common cause of problems, such as unrealistic plans, which cannot be financed
or implemented.

Having described the external environment, an analysis of the existing housing system needs to be
made. Information on housing should be reviewed. The housing system can be broadly classified
into two categories operated by a government agency or by private operators.

A. Considering private Real Estate developers , the following aspects should

be described to the extent possible:
Regulatory framework for the private real estate developers process for issuing
permits.
Monitoring mechanism in place (if any)
Total number of private real estate developers
Organization of real estate developers e.g. whether a company, proprietorship etc.
Share of interest between different real estate developers
real estate setting mechanism
Effectiveness of enforcement of rules and regulations governing the permits
Coordination mechanism of real estate developers

8.3 Evaluate and Diagnose Key Problems

The issues and problems of the existing slum will typically include aspects such as
unreliable housing services, lack of houses, over-crowding, pollution, congestion, safety,
service levels etc. A variety of methods can be employed to evaluate and diagnose key
problems, including the compilation of opinions and analysis of parameters.
Opinions from Stakeholders: Opinions may be received from Housing authorities, city
officials, Real estate developers and inhabitants. In particular, the assessment should

31
 include a consumer perspective on real estate services, which can help to ascertain the
weaknesses of the system and also to set goals for the improvement plan. The invaders
perception could be obtained either by structured interviews or through a well-designed
return questionnaire .This would reveal various aspects about real estate which cannot be
captured through various performance indices.
The type of problems and issues that may be highlighted on Table 7-4 below, though this
should be supplemented by other city-specific problems:

Table 7-4: Problems and issues of slums

Inadequate number of houses Pollution due to slums

Poor quality of houses Conflict between residents
Poor safety performance Excessivecriminal cases
Unreliable services Excessive illegal business
Irregular frequency Low profitability bussiness
Unaccessibility Excessive security required
Poor service coverage Crew behavior of residents
Lack of access to bus network

8.4 Benchmarks and Performance Indicators:

Benchmarks and Performance Indicators: In addition to opinions from
stakeholders, benchmarks and quantifiable performance indicators should be
included to evaluate the existing housing situation and Real Estate
development service. Typical indicators are listed on Table 7-5 below.
Table 7-5 benchmarks and performance indicators
Number of Houses (Per 1,000 people) and total capacity Efficiency parameters:
Number of residents locomote per day Earning per Km.
Proportion of residents with number of houses Cost per km
Average distance covered from one house to another Accessibility
House structure Plot ratio
Average commercial Residential ,industrial ,institutional Cost recovery ratio
Cime record: crime rate,breakdown rate Avarage vehicle availability
Adherence to emmision norms Avarage of pollution
Average rent Housing renting rate
Average of houses Km per breakdown
Techinical parameters of plots : low desnity ,medium Average desnity
desnty ,high density low cost housing
Concession services Avarage income

8. Activities to be Conduted

8.1 Proposed Interventions/ Technical Approach

Strategically, the project will be implemented in two phases.

32
A Preparatory Phase, during which further analysis, assessments and stakeholder meeting carried
out (as per Specific Objective 3);

An Implementation Phase, during which capacity building activities will be delivered and pilot
demonstration interventions carried out (as per Specific Objectives 5).
Preparatory Phase
Under the Specific Objective 1
Analysis, assessments and stakeholder consultations carried out
Planned Activity 8.2
Carry out strategic planning, surveys and assessments in Dar es Salaam

Sub-Activity 8.2.1:
Obtain detailed mapping products of Dar es Salaam through on-the-job training of
LGA and MLHSD technicians and planners, including aspects such as road and drainage network,
flood risk areas, housing density, existence of basic/social infrastructure, environmental aspects,
etc.

Sub-Activity 8.2.2:
Carry out specific a socio-economic survey at the household level in
Dar es Salaam by applying a sampling scheme (data to be disaggregated by sex) through
community-based organizations (CBOs) residing in these informal settlements (to be specifically
trained for the purpose) looking at issues such as: family size, land tenure, average income,
livelihood options, access to basic and social services, gender issues, etc.

Planned Activity 8.3

: Develop guidelines and tools

Sub-Activity 8.3.1:
Develop specific slum upgrading guidelines for the Kanyama targeting local government
technicians and planners

Sub-Activity 8.3.2:
Prepare awareness raising materials for community mobilization on urban management activities
such as: sanitation and hygiene promotion, solid waste management, land occupation mechanisms
and rights, gender issues, among other issues

Sub-Activity 8.3.3:
Testing, edition and printing of the prepared guidelines and tools

Implementation Phase
Sub-Activity 8.4.1:
Deliver training interactive sessions to LGAs and MLHHD technical staff on the developed slum
upgrading guidelines for the informal areas of Dar es Salaam

33
Sub-Activity 8.4.2
:
With the support of the results of the socio-economic survey in Dar es Salaam, conduct on-the-job
training of LGA and MLLHSD staff on participatory planning approach at the neighborhood level
through mapping support. The participants of these planning sessions, well balanced in terms of
gender, will be representatives from the targeted communities, LGA, MLHSD, private sector,
academia and CBOs.

Sub-Activity 8.4.3:
Based on the priority slum upgrading interventions from the participatory planning sessions,
prepare the needed technical plans and designs with all specifications for implementation. Cost-
effective and locally-adapted solutions will be privileged, and community involvement (including
women) in labor-intensive activities ensured.
The priority interventions to be carried out in Dar es Salaam are described in the following sub-
activities, and are consistent with the participatory planning session to be hold in Dar es Salaam.

Sub-Activity 8.4.4:
Open feeder roads and construct secondary or tertiary drainage channels
Through labor-intensive activities, by employing community members (including women) as man-
power. This will allow the targeted community to receive a temporary income or food (if the food-
for-work option will be accepted) and at the same time improve the physical living conditions of
their neighborhood. These labor-intensive activities will be supervised by qualified technicians
and supported by skilled labor to be hired for the purpose. Opening of feeder roads will facilitate
transportation, slum upgrading and the extension of the water supply network to reach more
households. In addition, improving the drainage conditions, especially in Dar es Salaam which
was almost entirely flooded twice during rainy season within the past 4 years, is a must.
Experience shows that digging and paving with concrete slabs secondary and tertiary drains and
cleaning the existing main drain, although not solving the problem, at least helps alleviating it. In
addition of damaging infrastructure and housing, flooding brings waterborne diseases such as
malaria and cholera which provoke many deaths in the peri-urban areas of Lusaka
-
Sub-Activity 8.4.5:
Stimulate housing improvement/development schemes for those households
with secure tenure by establishing a small revolving fund and applying micro-finance
mechanisms, to provide a concrete response to the need of affordable housing by the low-income
population living in the peri-urban areas

Planned Activity 8.5

: Establish local urban management structures for income generation and promote community
consultations and awareness raising
Sub-Activity 8.5.1:
Establish community structures (in which women needs to be adequately represented) with urban
management responsibilities which can act as local sub-contractors for delivering services such as
road and drainage maintenance, water standpipe management and solid waste collection and
recycling. These activities can generate income, stimulate the establishment of public-private

34
partnerships between the LCC and these organized community groups and at the same time
maintain the urban system in good health
Sub-Activity 8.5.2:
Organize regular gender-balanced community consultations during the whole implementation
phase of the project

Under Objective
: Leverage and coordinate additional private and donor funding

Planned Activity 8.6

: Advance a resource mobilization strategy to support efforts by government to implement the
urban upgrading framework (UN, donors, and private sector) as per Objective 4.

Sub-Activity 8.6.1:
Serve as focal point with the United Nations Country Team (UNCT) to coordinate the participation
of other UN agencies in settlement upgrading and urban development, working closely with the
UN Resident Coordinator to brief UNCT on progress of the program, integrating ongoing work of
other UN agencies, and identifying gaps

Planned Activity 8.7

: Broker cooperation agreements between agencies/donors and national/local government to invest
in the urban upgrading framework

Sub-Activity 8.7.1
Work with World Bank, Municipal Authorities for Temeke, Ubungo ,Kigamboni, Kinondoni and
Ilala .Real Estate agencies to develop multi-year programming by Ministry of lands ,city Council,
Ministry of works ,Infrastructure and communication , and other agencies on specific aspects of
settlement upgrading and to scale up (and complement) the work of PSUP and UN-Habitat,
feeding this into the preparations for the 2017-2020 Tanzania National Development Strategy .

Planned Activity 8.9

Facilitate public-private-community partnerships

Sub-Activity 8.9.1:
Broker partnership among private banks, community savings associations,
LGA, and local micro-finance institutions (MFIs) to develop loan products for self-built house
construction that combines community savings, public subsidy, and private capital.

8.10 Land Development Plan

The housing development Plan should cover the needs of all uses, especially commercial,
Residential, Institutional, Industrial use and conservation, so that full land use integration

35
 is considered. There are several Real Estate agencies dealing with Land use plan and it is
important that all are involved in preparing a common land use plan.
Supporting Land use plan, which can be highly cost-effective, allows better quality
services, improving both operational capacity and the conditions for customers.
Providing parking and basic amenities at termini, for both vehicles operations and for
passengers

9. Finance and Economics

9.1 Cost Estimation
The capital works/investment for the improvement plan includes:
Activities which are not likely to generate revenue.
Activities which would have a revenue stream or could be sponsored.
Activities which would require capital investment, but would generate revenue.
The first category would largely comprise civil works, such as house improvements,
residential facilities, sewage and sanitation systems, storm water drainage systems etc.
These activities would largely have to be carried out with public funds.
The second category would basically comprise supporting infrastructure for public
transport. This would include construction of wayside bus shelters, pedestrian and cycling
facilities, signages etc. Though the funds required are much lower than for the first
category, they would have to be provided by the city government.

9.2 Quantifying Benefits

The benefits of the Improvement Plan have to be assessed in a cost benefit analysis. Several
stakeholders contribute to the house improvement plan and benefit. The benefits accrue
under three broad headings:
Benefits to the city as a whole:
Better environment lower pollution levels.
Improved safety to residents.
Increase in real estate values.
Benefits to real estate users.
More comfort.
No overcrowding.
Good scenery and high security
Benefits to other real Estate users:
Increased commercial speeds.
Opportunity to use stakeholders of services to real estate(Business and
benefits )
Benefits to the city authorities:
More houses with affordability, hence ease of regulation.
Well planned settlements system facilitates further growth of city.
Advertising revenue.
Benefits to the tax operators:
Revenues from the fare box.

36
 Revenue from advertising on houses.

9.3 Financial and Economic Analysis

Once the cost and the benefit streams have been quantified, an economic and financial
analysis should be carried out to determine whether the houses improvement plans are
viable or not. Two agencies are investing public authorities like the city government and
the real estate companies. As a first step, it is necessary to assign costs and benefits between
them. For example, fare box revenue is a cash inflow for the tax operator, but not for the
city government. In several project reports this distinction is not made and a macro
economic and financial analysis is undertaken for the entire plan, which often leads to
misleading results. The economic analysis is required to make policy decisions.
The financial analysis is necessary for tax operators. The economic benefits accrue to other
agencies or users.
The analyses should include FIRR (Financial Internal Rate of Return) and EIRR
(Economic Internal Rate of Return) and NPV (Net Present Value). They may guide
decision makers on fares policy. For example if economic return is very high, subsidizing
public housing through tax concessions is appropriate. A high EIRR may indicate potential
financial benefits can be realized.

9.4 Mobilization of Funds

Once agency activities have been decided, each agency would have to prepare a fund
mobilization plan for:
Activities which are not likely to generate revenue
Activities which would have a revenue stream or could be sponsored.
Activities which would require capital investment but would generate substantial revenue.
Activities which are not likely to generate revenue: Funds for these would have to come
either from the surpluses of the city governments or be allocated by the state government
or the Union for city development. Innovative methods could also be used to convert
benefits into revenue in the long run. This could be in the form of a cess on the property
tax levied by the city government for house improvements or levy of a betterment tax on
areas around improved infrastructure. If this is done the city government or the
development authority may be able to raise resources through financial institutions/banks.
Activities which would have a revenue stream or could be sponsored: These activities can
generate immediate revenue streams .Activities which would require capital investment
but would generate substantial revenue: It may not be necessary to invest public funds for
this purpose as this activity generates a cash flow, which if managed properly could be
used to fund the initial investment. Once again, innovative mechanisms like escrow
accounts, leasing/hiring of buses etc. could be used.

10. Implementing the Plan

37
10.1 Introduction
An Implementation Plan (


Figure 10-1) should be developed for the Actions selected in Stage 4. This must consider
all the elements of the project, how they are linked and sequenced, how they are to be
financed, and who should implement them. It must also consider risks and how to deal with
unexpected circumstances, delays, challenges and setbacks.
Above all, the Implementation Plan must be realistic and take into account the conditions
of the host environment.
The objectives of this stage are to:
Develop a practical Implementation Plan that will achieve the desired actions within the
available resources and constraints in an effective and efficient manner
Prepare the implementation team and structures to deliver the project
This stage consists of four activities:
Develop the comprehensive Action Plan, including individual actions, their linkages and
interdependencies, sequencing, timing and communications strategy
Develop the Financing Plan, including financing of actions and project management
Assess Feasibility and Risk and prepare Contingency Plans
Identify Roles and Responsibilities and specify the Implementation Team

Figure 10-1: Implementation Plan

Action Time
and
Sequencing

Develop the Financin Roles and Assess the

implementation g Plan implementin feasibility
plan
g team and
review
Risk and
Contingency
plan

38
10.2 Develop the Implementation Plan
Ensure that responsibilities are clearly defined
Where possible, involve directly affected stakeholders in implementation e.g. within
project and design teams both to harness their knowledge and to maintain their support
Make adequate provision for training and know-how transfer to both the project
implementers and stakeholders who must operate, use or manage the system. This could
include study tours and secondments for innovative processes, so that the implementation
team properly understands what it is trying to implement
Ensure that the financing plan is practical, comprehensive and realistic. Double-check that
the finances really are available and that stakeholders are willing to commit the investment
and operating funds
Where operators are expected to provide investment finance, consider ways to assist them
to gain access to funds at reasonable rates. This is especially important where banks do not
have experience of lending to the sector.
Pay adequate attention to the disruption and inconvenience during the implementation and
start-up phases. This covers customers, other house -users, and the buildings themselves.
It this is not properly planned.
In the Risk Assessment and Contingency Planning Process, be honest in assessing the real
level of risk. Pay attention to the risks of legal challenges (including ones designed solely
to delay) and of stakeholders working against the project
In complex projects, prepare mechanisms for handling disputes among stakeholders

10.3 Policy Advocacy

Improvement options and sub-options include:
Strengthen the Legal and Regulatory Real Estate for urban housing services
Develop bye-laws for Real Estate service regulation, approved by the City Council
Assign legal rights to the City to regulate, plan and manage Real Estate services
Reform the Real Estate taxation structure.
Establish or Strengthen a City Real Estate Authority :
Establish a Real Estate service co-ordination unit within the City administration
City Real Estate Authority takes responsibility for housing and land uses planning
City Real Estate Authority has responsibility for all aspects of housing services
Place all services under contract to the Real Estate Authority
Services can only operate under permit from the City
Set service parameter, quality and standards.

39
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