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# New UDSM campus sparks investment boom in Kagera region

## What you need to know:

**The construction of the University of Dar es Salaam Business School (UDBS) campus in Kagera has sparked a wave of interest from investors both within and beyond Kagera**

**Kagera. **Kagera Region is undergoing a remarkable transformation as businesspeople rush to secure investment opportunities near the University of Dar es Salaam Business School (UDBS) campus, currently under construction.

This groundbreaking development has sparked a wave of interest from investors both within and beyond Kagera, all eager to tap into the burgeoning economic opportunities linked to the upcoming institution.

The campus, located on a sprawling 315-hectare site about 15 kilometres from Bukoba town, stands as a beacon of hope and prosperity for the residents of Kagera.

The Sh13 billion project, part of the World Bank-funded Higher Education for Economic Transformation Project (HEET), has quickly become a catalyst for change in the region.

As construction advances, land values in the surrounding areas have surged, with local residents already experiencing financial gains.

“I have sold part of my farm for Sh25 million,” shared a resident of Karabagaine Ward, Mr Emmanuel Byemelwa.

Karabagaine Ward is where the campus is being built.

“People are excited about the opportunities. It’s not just about selling land; it’s about the promise of change for the region.”

For years, Kagera has taken pride in producing some of Tanzania’s brightest minds, but many of these talents have been compelled to leave the region in search of higher education and investment opportunities.

The establishment of the UDBS campus presents a chance to reverse this trend, offering a space for talent to flourish locally while attracting investors from neighbouring regions, including Uganda.

“My son had been living in Dar es Salaam for nearly 20 years,” said Mr Yusufu Mkure, a Muleba district resident.

“But when he heard that the university buildings were being erected in Itahwe and Kangabusharo villages, he decided to return.

He’s already purchased a plot of land.”

The excitement surrounding the campus reflects a larger trend of economic renewal.

The UDBS campus is anticipated to be a catalyst for business growth, creating both direct and indirect employment opportunities for the local population.

Investors, recognising the potential for long-term growth, are purchasing land around the university, anticipating increased demand for services such as housing, hospitality, and retail.

“We expect billions of shillings to flow into the region because of this project,” noted Mr Thomas Makori, an economist from Bukoba.

“The price of land has skyrocketed, with some plots now selling for up to Sh30 million per hectare.”

The Kagera campus is part of a broader HEET initiative, which seeks to enhance higher education in Tanzania and align academic programmes with labour market demands.

The University of Dar es Salaam (UDSM), the country's oldest and largest university, received $47.5 million from the total HEET allocation of $425 million.

This funding will support the establishment of new campuses in Kagera and Lindi, as well as the development of new facilities at the Mlimani Campus in Dar es Salaam and the Institute of Marine Sciences in Zanzibar.

For Kagera, hosting a university signifies more than just infrastructure—it represents a transformative shift for the entire region.

Historically, despite having a conducive environment and climate for education, Kagera has had a dearth of higher education facilities.

“This university will strengthen our community’s commitment to education,” emphasised Karabagaine Ward Councillor, Mr Samuel Makwabe.

“Our children won’t have to travel far anymore—they can study right here at home.”

The new campus will specialise in business and entrepreneurship courses, aiming to accommodate up to 10,000 students over the next decade.

Plans also include a training centre for entrepreneurs, positioning the university as a hub for local business development.

“We aim to bring higher education closer to communities that have historically lacked access,” said the Deputy Coordinator of the HEET project at UDSM, Dr Liberato Haule.

“The Kagera campus is part of our strategy to expand student enrolment and ensure more Tanzanians have access to higher education.”

Currently, UDSM receives over 60,000 student applications annually for undergraduate programmes, but limited capacity means only about 10 percent of applicants are admitted.

The new campus will help address this bottleneck, providing additional space for students and improving university enrolment rates in Tanzania compared to neighbouring countries like Kenya.

As construction progresses, local leaders are optimistic about the campus's potential to uplift the region.

Chairman of Itahwe Village, Mr Philemon Anatory, underscored the financial challenges that families in Kagera have faced in sending their children to study outside the region.

“We’ve been paying a lot to educate our children outside the region,” he explained.

“I sent my children to Uganda for their education, and it cost me a fortune. Having UDSM here will save families like mine so much money.”

Interest is not confined to Kagera residents alone.

Investors from Uganda are also setting their sights on the area, eager to seize the opportunities presented by the university’s presence.

This cross-border interest further underscores the economic potential that the UDSM Kagera campus holds for the region.

The campus, with its state-of-the-art infrastructure—comprising classrooms, lecture halls, dormitories, and faculty offices—is expected to be completed by 2025.

“This is just the beginning,” said Bukoba District Urban Planning Officer, Mr Bruno Barongo.

“We’ve already designated areas for further investment. The university will change the face of Kagera for years to come.”

The project signals a new era for Kagera, positioning it as a hub of education, entrepreneurship, and economic growth.

As the campus nears completion, anticipation continues to build, with hopes high that this historic investment will unlock a future of limitless possibilities for the region.