The development of skills and competences is a fundamental objective of capacity-building projects in order to achieve successful long-lasting outcomes. This study is about factors that influence effective implementation of capacity-building projects at the University of Dar es Salaam. For it is necessary that capacity building projects implemented by higher education institutions achieve a standard of performance that results into better and sustainable outputs. The study was guided by a qualitative research approach and a case study design. It involved five selected capacity-building projects at the University of Dar es Salaam. The sample included respondents from both members of top management, stakeholders and project beneficiaries. The study revealed that among the three successful of the five selected capacity-building initiatives each achieved the majority of its primary objectives. Among the elements that helped these projects succeed were the careful objective-setting and execution that come from committed and qualified leaders. The study learned in order for a project to succeed, dedicated full-time supervisors and operators who are specialized in that field and possess in-depth project management skills are needed. The following are recommended among others: a charter outlining the precise responsibilities of each management entity and participants, better disbursement of cash and decentralisation of responsibilities. Keywords: Higher education, Capacity building, Projects, Success factors, Challenges