The Tanzanian economy is fairly stable, with GDP projected to grow at 6% in 2023. It is the tenth-largest economy in Africa and the third‐largest in East Africa by GDP. Tanzania is also among the fastest‐growing economies in Africa and the world, with an average real GDP growth rate of 6.3% from 2010‐2019.
The country's construction sector contributed 8.3% to the country’s GDP in Q3 2022. It is estimated that the total market value of construction activities in 2023 will be valued at TSh22.8 trillion in 2023 (approx. US$9.5 billion).
Construction activities have been driven by private projects such as residential and commercial real estate as well as public projects such as the construction of roads, railways, bridges, water systems, telecommunications, and air transport networks.
The Tanzania Construction Market Report details the state of the construction industry in Tanzania. The 96‐page report takes a comprehensive look at the Tanzanian construction industry, including opportunities in various sub‐sectors, and an overview of how the industry operates including tender and procurement procedures, competition, industry entry barriers, cultural backgrounds, and much more.
Key Report Highlights
- Allocation to capital expenditure rose consistently at 10.8% from TSh12 trillion to TSh13.3 trillion in the four years from 2019 to 2022.
- In the 2023 budget, the allocation to capital expenditure is a 13.1% increase from the allocation in 2022.
- Tanzania’s construction sector recorded an impressive compound annual growth rate of 11.5% in 10 years from 2012 to 2021.
- The construction sector will continue to be driven mainly by public sector development initiatives in the housing sector, education, and civil works. Private sector activities would augment this growth through real estate, industrial and commercial development.
- The government’s renewed drive to develop Dodoma to a standard befitting of a capital city will also drive growth in the country’s construction sector. Infrastructure construction works and, eventually, industrial construction will also follow, driven by exploratory activities in the natural gas and mining sectors.
- The construction sector in Tanzania is transparent as the public procurement process is transitioning towards the electronic platform, TANePS.
Unique Value offered by the report
- Detailed and first-hand insight into how the industry operates - Entry barriers, Procurement Process, Cost Trends, Labour Resources, Dispute Resolution, Industry Supply Chain.
- SWOT Analysis of the Tanzanian Construction Sector.
- Information on doing business in Tanzania - Recruitment and Staffing regulations, Licensing regulations, Health and Safety regulations, and Market Entry processes.
- Analysis of Market Potential - Detailed information about project opportunities across Transportation, Energy and Power, Water and Sanitation, Health, Education, and other sub-sectors.
- Interview With Engr. Katelula Kaswaga (Structural and Bridge Engineer with TANROADS) - This highly enlightening interview provides a direct stakeholder perspective on issues such as informal construction activities, the regulatory role of the role the NCC (National Construction Council), channels of dispute resolution, the TANePs (Tanzanian National e-Procurement System), the impact of the pandemic and the Russia-Ukraine war on the prices of materials and many more issues.
Some Projects that are covered in the report include:
- 2.1‐Gigawatt Rufiji Hydropower Dam project.
- 300-kilometer Standard Gauge Railway - Dar es Salam to Morogoro.
- Julius Nyerere Hydropower Plant.
- 205 kilometer Kibaha - Morogoro Expressway.
- East Africa Crude Oil Pipeline
Who will benefit from reading the 2023 Tanzania Construction Market Report
This report provides optimal value to construction-related stakeholders such as:
- Contractors.
- Manufacturers and Suppliers of materials.
- Financiers and Bankers.
- Economists and Investment Analysts.
- Policymakers and Government Agencies.
- Engineering consultants.
- PPP investors.
- Academics and Researchers
Table of Contents
Contents
Foreword
1 Executive Summary
2 Introduction
2.1. Country Overview
2.2. Economic Overview
2.3. Government Budget
3 The Construction Sector In Tanzania
3.1. Sector Overview
3.2. Size Of The Construction Sector
3.3. Market Segments
3.3.1. Residential Construction
3.3.2. Industrial Construction
3.3.3. Commercial Construction
3.3.4. Infrastructure And Civil Construction
Interview With Engr Katelula Kaswaga
4 Market Potential By Sector
4.1. Transportation
4.2. Energy And Power Sector
4.3. Water And Sanitation Sector
4.4. Health Sector
4.5. Education
5 How The Tanzania Construction Sector Operates
5.1. Competition
5.2. Entry Barriers
5.3. Public Procurement Process
5.4. Industry Supply Chain
5.5. Construction Costs Trend
5.6. Labour Resource
5.7. Contracts And Dispute Resolution
5.7.1. Contracts
5.7.2. Dispute Resolution
6 Doing Business In Tanzania
6.1. Market Entry
6.2. Licencing
6.3. Corruption
6.4. Recruitment And Staffing
6.5. Health And Safety
7 SWOT Analysis
7.1. Strengths And Weaknesses
7.2. Opportunities And Threats
7.3. General Comments
8 Outlook
9 Industry Associations And Key Contacts
9.1 Industry Associations
I. Contractors Registration Board (CRB)
II. Engineers Registration Board (Erb)
III. National Construction Council (Ncc)
IV. Architects And Quantity Surveyors Registration Board (Aqrb)
V. Public Procurement Regulatory Authority (Ppra)
9.2 Other Key Contacts
I. Tanzania Electrical, Mechanical, And Service Agency (Temesa)
II. Tanzania Building Agency
III. Tanzania National Roads Agency (Tanroads)
IV. Tanzania Rural And Urban Roads Agency (Tarura)
V. Ministry Of Works, Transport And Communication
VI. Ministry Of Energy (Me)
VII. Tanzania Electric Supply Company (Tanesco)
VIII. Tanzania Petroleum Development Corporation (Tpdc)
IX. Ministry Of Lands, Housing And Human Settlements Development
X. Export Processing Zone Authority (Epza)
XI. Tanzania Revenue Authority (Tra)
10 Company Profiles
10.1. Advent Construction
10.2. Bharya Engineering & Contracting Co. Ltd (Becco)
10.3. China Civil Engineering Construction Corporation (Ccecc)
10.4. China Henan International Cooperation Group
10.5. Csi Construction
10.6. Estim Construction
10.7. Holtan (E.a) Ltd
10.8. Kiure Engineering
10.9. Larsen & Toubro
10.10. Masasi Construction Co. Ltd
10.11. Milembe Construction
10.12. Mohammedi Builders Ltd
10.13. Nordic Construction Company Limited
10.14. Salem Construction Limited
10.15. Skol Building Contractors
11 References
11.1. Publications
11.2. Websites
List of Tables
Table 1: Road Network in Tanzania
Table 2: Total Installed Capacity (MW) June 2022
Table 3: Ongoing government-funded projects
Table 4: Water production capacity in Tanzania
Table 5: New hospital projects in Tanzania
Table 6: Classification of contractors by the value of contracts permissible
Table of Figures
Figure 1: Map of Tanzania
Figure 2: Map of Tanzania showing cities and population
Figure 3: Largest Cities by Population 2022
Figure 4: African countries by GDP
Figure 5: Tanzania’s GDP growth rate%
Figure 6: Budgetary allocation
Figure 7: Africa Infrastructure Development Index
Figure 8: Construction sector by market value
Figure 9: Contribution to GDP by sector Q3 2022
Figure 10: Real estate sector performance by GDP
Figure 11: Sector output - Trade & Repairs, Accommodation and Repairs
Figure 12: Health Sector GDP 2012 - 2022
Figure 14: Distribution of health facilities across regions
Figure 13: Operating facilities by type
Figure 15: Education sector GDP, 2012 - 2022
Figure 16: Building and construction materials Import value (US$ Mn)
Figure 17: Inflation rate (in %)
Samples
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Executive Summary
The Tanzania Construction Market Report outlines major opportunities in various construction project sectors, provides rare insight into the workings of the industry, and gives a forecast for the direction of the market.
Included in the Tanzania Construction Market Report:
- Complete picture of the Tanzanian Construction market.
- Construction Industry policy direction of the Tanzanian government.
- Projects opportunities and procurement details.
- Tanzanian Construction Industry structure and trends.
- Interview with a key industry player covering a wide range of relevant issues.
- Contact information of key industry agencies and associations.
- Profile and Contact details of top construction companies and material suppliers
Companies Mentioned
- Advent Construction
- Bharya Engineering & Contracting Co. Ltd (Becco)
- China Civil Engineering Construction Corporation (Ccecc)
- China Henan International Cooperation Group
- Csi Construction
- Estim Construction
- Holtan (E.A) Ltd
- Kiure Engineering
- Larsen & Toubro
- Masasi Construction Co. Ltd
- Milembe Construction
- Mohammedi Builders Ltd
- Nordic Construction Company Limited
- Salem Construction Limited
- Skol Building Contractors
Methodology
Methodology/Sources
The publisher uses publicly available information to compile construction market reports and collate historical data. Sources used in the reports include World Bank statistics; African Development Bank statistics; IMF statistics; UN statistics; Country national account data and statistics; government ministries; officially released company results and figures; trade bodies and associations; and international and national news agencies.
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