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.

ConstructAfrica’s 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 Resource, 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, 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, regulatory role of 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
• Policy makers and Government Agencies
• Engineering consultants
• PPP investors
• Academics and Researchers