Optimizing Own-Source Revenue Through Public Entertainment Assets: Evidence from Tanzania and Policy Pathways for Fiscal Autonomy in Developing Nations

Abstract

Globally, local government authorities (LGAs) serve as critical pillars of decentralized governance, responsible for delivering essential public services while contributing to national economic development and the attainment of the Sustainable Development Goals. However, LGAs in developing economies, particularly across Sub-Saharan Africa, face persistent fiscal constraints, relying on central government transfers for 80-90% of their financing, a structural dependency that fundamentally undermines local autonomy, accountability, and service delivery capacity. In response to chronic revenue deficits, many LGAs have established revenue-generating entertainment infrastructure projects including ceremonial halls, bus stands, and markets, yet these investments consistently perform below expectations, with limited empirical evidence explaining this performance gap and offering transferable lessons for other developing regions. This study examines revenue generation strategies in entertainment projects within Morogoro Municipality, Tanzania, employing a convergent mixed-methods case study design that integrates thematic analysis of key informant interviews (n=16) with descriptive and inferential statistical analysis of monthly revenue data from four ceremonial halls across three financial years (2022/2023-2024/2025). Findings reveal four principal strategies: minimum renting conditions, customer care, location advantages, and affordable pricing, supported by management frameworks comprising direct supervision, monitoring and accountability, and lease administration. Revenue performance analysis demonstrates that Mbaraka Mwinshehe Hall achieved 79.3%, 63.5%, and 74.2% of its TZS 150,000,000 annual target (χ²=12.47, p<0.01), consistently at minimum performance, while Msamvu Bus Stand Hall experienced a catastrophic 76.1% revenue collapse (from TZS 60,100,000 to TZS 14,350,000), with eight consecutive months of zero collection (November 2024-June 2025). Cross-project portfolio analysis reveals a 23.8% aggregate revenue decline, from TZS 237,540,000 to TZS 181,000,000 over the study period, with Mbaraka Mwinshehe Hall’s portfolio share increasing from 50.1% to 61.5% as other projects collapsed, indicating dangerous portfolio concentration risk. Theoretically, findings affirm Administrative Management Theory’s principles, particularly order, equity, and scalar chain, while Political Economy Theory illustrates how regulatory weakness, political interference, and infrastructure deficits constrain revenue realization. Globally, these findings contribute empirical evidence on public infrastructure revenue performance, demonstrating that strategies alone are insufficient without complementary institutional reforms including infrastructure rehabilitation, digital payment systems, decentralized emergency funding, and enforceable lease contracts. This study offers transferable policy pathways for fiscal decentralization across Sub-Saharan Africa and comparable developing economies, with implications for SDG 8 (Decent Work and Economic Growth), SDG 11 (Sustainable Cities and Communities), and SDG 16 (Peace, Justice, and Strong Institutions), while contributing to the global discourse on local government financial sustainability.