Information and Telecommunication Director Francis Ndulane said construction of the market will be undertaken by the Tanzania Building Agency (TBA).
The new structure would accommodate myriad services including hotels and financial institutions such as banks, he said.
Ndulane said the new project will give the town a new look while at the same time enabling traders and businesspeople to operate in a conducive environment.
The township also plans to construct a bus terminal in Kapolo area to reduce congestion in the central business district of Ulanga.
TBA architect Mlungana Msangi said construction of the market and the bus terminal would commence in June, this year, and that currently the agency was finalising architectural drawings of the projects.