Originally a small market town known as Idodomya, the modern Dodoma was founded in 1907 by German colonists during construction of the Tanzanian central railway. The layout followed the typical colonial planning of the time with a European quarter segregated from a native village.
In 1967, following independence, the government invited Canadian firm Project Planning Associates Ltd to draw up a master plan to help control and organise the then capital of the country Dar es Salaam that was undergoing rapid urbanisation and population growth. The plan was cancelled in 1972 in part due to its failure to adequately address the historical and social problems associated with the city.
On 1 October 1973, after a nationwide party referendum, the Tanzanian government announced that the capital would be moved from Dar es Salaam to a more central location to create significant social and economic improvements for the central region and to centralise the capital within the country. The cost was estimated at £186 million and envisaged to take 10 years. The site, the Dodoma region, had been looked at as a potential new capital as early as 1915 by the then colonial power Germany, in 1932 by the British as a League of Nations mandate and again in the post-independence National Assembly in 1961 and 1966.
With an already established town at a major crossroads, the Dodoma region had an agreeable climate, room for development and was located in the geographic centre of the nation. Its location in a rural environment was seen as the ujamaa heartland and therefore appropriate for a ujamaa capital that could see and learn from neighbouring villages and maintain a close relationship to the land.
A new capital was seen as a more economically viable alternative than attempting to reorganise and restructure Dar es Salaam and was idealised as a way of diverting development away from continued concentration in a single coastal city that was seen as anathema to the government’s goal of socialist unity and development. Objectives for the new capital included: that the city becoming a symbol of Tanzania’s social and cultural values and aspirations; that the capital city function being supplemented by industrial-commercial development; and that the mistakes and features of colonial planning and modern big cities such as excessive population densities, pollution and traffic congestion were to be avoided.