This article brings together recent debates in urban and development studies to illuminate the understudied politics and compromise involved in the rollout of globally funded urban development in Africa. The argument presented builds on a detailed analysis of the World Bank's urban development portfolio in Tanzania, with a specific focus on the Dar es Salaam Metro-politan Development Project, to draw attention to the disjuncture between rising urban investments and persistently low levels of city-level autonomy in urban Africa. Challenging views of cities as either active agents or mere subjects of urban development, the article focuses on the negotiation strategies that have been employed by donors and recipients alike to enable the continued disbursement of urban development funding. The pragmatic and non-confrontational nature of these negotiation strategies is illustrated by highlighting the role of a transnational community of urban development professionals who contribute to embedding local support for policy reform from within. It is argued that while this community has been key to enabling the massive growth of the World Bank's urban lending portfolio in Tanzania, it has also contributed to undermining effective local government reform, thereby reshaping conventionally assumed pathways and understandings of urban agency and development.