THE recent acquisition of the Urafiki area by the National Housing Corporation (NHC) has sparked a flurry of mixed reactions from various stakeholders, the area, previously under the management of the Tanzania - China Friendship Textile Co. Ltd, was purchased for 3bn/-, raising eyebrows and triggering debates on the valuation and future implications of this substantial investment.

The Public Relations Manager of the NHC, Muungano Saguya, announced the purchase during a visit to inspect the newly acquired area. Saguya elaborated that the purchanse of Urafiki, encompasses houses, warehouses, open fields, factories, and other assets.

He expressed his optimism about the acquisition, emphasizing that it is expected to improve infrastructure, boost the local economy, and enhance the city's landscape.

"We have purchased the area, which spans over 50 acres, for more than three billion shillings through an open auction," Saguya stated. "With this new ownership, the National Housing Corporation is committed to improving these areas in line with our goals of providing modern and high-quality housing for the citizens. We have started by surveying the entire area and identifying all its boundaries."

Urafiki stands as a pivotal industrial and residential hub, playing a crucial role in Tanzania's economy. NHC's ambitious efforts to rejuvenate the locale through improved infrastructure, contemporary housing, and commercial zones have sparked a blend of excitement and doubt.

While optimism abounds among various stakeholders regarding the project's potential advantages, concerns linger. The prospect of sophisticated infrastructure and housing is viewed positively as a stride towards urban enhancement. However, there are apprehensions that NHC's initiatives might predominantly cater to the middle and upper-class segments.

"This new project will greatly benefit the nation as a whole, bringing positive changes to the housing sector and economic development in the country," Saguya noted. In the NHC's development plan, special attention will be given to ensuring the Urafiki area becomes a prime example of modern and sustainable development.

Muungano emphasized, "This marks a significant milestone for NHC and our nation. We urge citizens and diverse stakeholders to rally behind our initiatives aimed at enhancing and nurturing these regions for the well-being of present and future generations."

However, dissenting perspectives reverberate in the ongoing discussion. Critics argue that the substantial 3 billion/- price tag might not truly reflect the value of the area and its assets.

They question whether NHC could have secured the area at a more cost-effective rate, particularly given the existing economic challenges and the crucial need for transparent transactions.

Additionally, concerns linger regarding the possibility of displacing current businesses during the revitalization process.

 "I am concerned about the valuation of the property and whether the expenditure is justified given our economic situation," remarked one Athuman Juma, a local economist. "There needs to be clear accountability and transparency in how public funds are utilized in such large-scale projects."

Moreover, some residents fear that the redevelopment could lead to gentrification, pushing out lower-income who have used the area for businesses. "We hope the NHC will take into consideration the needs of the existing community and not just focus on attracting new investors and residents," said a Hadija Mohame, a Dar es Salaam resident.

“NHC need to reassured the public that the redevelopment will be inclusive and beneficial for all. They should emphasize that the project is aimed at creating a balanced and sustainable environment that will serve the needs of both current residents and future generations,” said Samuel John a local real estate agent.

Adding that: “I think the involvement of the main stakeholders, including the Treasury Registrar and the Tanzania - China Friendship Textile Co. Ltd, is expected to bring additional oversight and collaboration to ensure the project's success.

Certainly, here are some professional arguments regarding the NHC's purchase of Urafiki textile for 3 billion:

Market value assessment

The purchase price of 3 billion may appear high at first glance, but it's essential to consider the property's market value. An independent assessment should be conducted to determine if the purchase price aligns with the current market value of similar properties in the area.

Long-term investment

The acquisition of Urafiki Textile may be part of a strategic long-term investment plan by NHC. While the initial purchase price might seem high, the property could hold significant value and potential for future development or resale, leading to a favorable return on investment over time.

Asset evaluation

Beyond the surface-level assessment of the purchase price, a comprehensive evaluation of the property's assets, such as land, buildings, infrastructure, and potential for redevelopment, should be conducted. This evaluation can provide a more accurate depiction of the property's true worth and justify the purchase price.

 Economic development impact

The acquisition of Urafiki Textile by NHC could have broader economic development implications, such as job creation, revitalization of the area, and contribution to local infrastructure projects. These factors should be taken into account when evaluating the purchase price in relation to its overall impact on the community and economy.

 Strategic importance

Consideration should be given to the strategic importance of acquiring Urafiki Textile to NHC's mission and objectives. If the property aligns with NHC's goals for urban development, affordable housing initiatives, or industrial revitalization, the purchase price may be justified based on its strategic significance.

 Negotiation factors

It's also essential to understand the negotiation factors that influenced the purchase price. Factors such as market demand, competition from other buyers, property condition, and potential liabilities may have influenced the final price negotiated by NHC.

 Due diligence

Before finalizing the purchase, thorough due diligence should be conducted to assess any potential risks, liabilities, or hidden costs associated with the property. This process can help mitigate any uncertainties and ensure that the purchase price accurately reflects the property's true value.

 As the NHC moves forward with its plans, it will be crucial to maintain transparency and open communication with all stakeholders to address their concerns and gain their support. The success of the Urafiki redevelopment project will depend on how well the NHC can balance the interests of various parties while achieving its goals of urban improvement and economic development.