The Infrastructure Industry in Tanzania 2015
Price
R 1 900.00(ZAR) estimated $ 120.93 (USD)*
Report Coverage
The report on the Tanzanian Construction Sector identifies and discusses the opportunities and challenges in the local economy for the construction industry, as well as factors influencing the success of the industry. The report also profiles 26 companies active in the sector, including mega-Chinese construction firms the China Civil Engineering Construction Corporation (CCECC) and the China Communications Construction Company Ltd (CCCC), Advent Construction, one of Tanzania’s major local construction companies, and Wapo Scaffolding, a small local company trying to establish itself in the market.
Contribution of the Sector
This report focuses on the Tanzanian construction industry, which has been bolstered by continuing growth in the communications, transport and infrastructure development sectors. The construction sector is one of the forces driving national GDP growth and the Tanzanian National Bureau of Statistics predicts that economic growth will increase to 7.4% in 2015 from 7.2% in 2014. The construction industry is expected to contribute 7.3%, which is equivalent to US$2.77bn.
Influencing Factors
The sector has seen a period of sustained growth since 2002 as a result of government support, increased infrastructure development, and significant diplomatic and commercial partnerships with the Chinese government and Chinese companies. A significant factor going forward is the large natural gas reserves that were recently discovered and the growth in the country’s urban population. However, problems do exist within the construction industry, caused mainly by corruption and a lack of quality from local contractors. There are also concerns regarding the unrest in Burundi and other neighbouring countries and although expected to be violence-free, national elections are to be held in October 2015.
Table of Contents
| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | DESCRIPTION OF THE INDUSTRY | 1 |
| 2.1. | Industry Supply Chain | 1 |
| 2.1.1. | Capacity, Quality and Security of Supply | 1 |
| 2.2. | Geographic Position | 2 |
| 2.3. | Key Cities and Regions | 3 |
| 3. | SIZE OF THE INDUSTRY | 4 |
| 3.1.1. | Key Indigenous and Foreign Players | 5 |
| 4. | STATE OF THE INDUSTRY | 12 |
| 4.1. | Local | 12 |
| 4.1.1. | Corporate Actions | 13 |
| 4.1.2. | Regulations | 14 |
| 4.1.3. | Market Opportunities and Challenges per Sector | 17 |
| 4.1.3.1. | Transport | 17 |
| 4.1.3.2. | Energy/Power | 21 |
| 4.1.3.3. | Water Supply and Treatment | 25 |
| 4.1.3.4. | Healthcare | 27 |
| 4.1.3.5. | Education | 28 |
| 4.1.3.6. | Telecommunications | 29 |
| 4.1.3.7. | Residential Building | 31 |
| 4.1.3.8. | Commercial | 33 |
| 4.1.3.9. | Retail | 33 |
| 4.1.3.10. | Hotels and Tourism | 34 |
| 4.1.3.11. | Mining and Industrial | 36 |
| 4.2. | Continental | 39 |
| 5. | INFLUENCING FACTORS | 44 |
| 5.1. | General Trends | 44 |
| 5.2. | Economic Environment | 45 |
| 5.2.1. | General | 45 |
| 5.2.2. | Effects on the Construction Sector | 47 |
| 5.3. | Socio-Political Environment | 47 |
| 5.4. | Infrastructure Deficit | 49 |
| 5.4.1. | Government Infrastructure Programme Spend | 49 |
| 5.4.2. | Foreign Direct Investment (FDI) | 50 |
| 5.4.3. | Private Sector Investment | 50 |
| 5.5. | Urbanisation | 51 |
| 5.6. | Local Content | 51 |
| 5.7. | Corruption | 52 |
| 5.8. | Input Costs | 53 |
| 5.9. | Cyclicality | 53 |
| 5.10. | Health and Safety | 53 |
| 5.11. | Labour Resources | 54 |
| 5.11.1. | Training and Skills Development | 54 |
| 5.11.2. | Licensing | 54 |
| 5.11.3. | Skills Shortages | 55 |
| 5.11.4. | Opportunities for Foreign Professionals | 55 |
| 5.12. | Environmental Concerns | 56 |
| 6. | COMPETITION | 58 |
| 6.1. | Barriers to Entry | 58 |
| 6.2. | Public Procurement and the Tendering Process | 58 |
| 6.3. | Technology, Research and Development (R&D) and Innovation | 58 |
| 7. | SWOT ANALYSIS | 59 |
| 8. | OUTLOOK | 60 |
| 8.1. | Construction Industry Forecast | 60 |
| 8.2. | Macroeconomic Outlook | 60 |
| 8.3. | Political Outlook | 61 |
| 9. | INDUSTRY ASSOCIATIONS | 62 |
| 10. | REFERENCES | 62 |
| 10.1. | Publications | 62 |
| 10.2. | Websites | 63 |
| COMPANY PROFILES | 64 | |
| Advent Construction Ltd | 64 | |
| Alvic Builders Tanzania Ltd | 66 | |
| Atigh Building Construction Company Ltd | 68 | |
| Atlas Development & Support Services Ltd | 69 | |
| Aurecon South Africa (Pty) Ltd | 73 | |
| COWI Tanzania Ltd | 77 | |
| Del Monte (Tanzania) Ltd | 79 | |
| Estim Construction Company Ltd | 80 | |
| Fabec Investment Ltd | 82 | |
| GIS Engineering & Environmental Service Ltd | 84 | |
| GMP Consulting Engineers Ltd | 86 | |
| GS Power Installations (Pty) Ltd | 88 | |
| Hematec Investment Ltd | 89 | |
| Holtan East Africa Ltd | 91 | |
| ItalFrame Ltd | 92 | |
| JFM construction Ltd | 94 | |
| Kerai Construction Ltd | 95 | |
| Logistics Engineering Ltd | 96 | |
| MHM General Supply Ltd | 98 | |
| Norplan Tanzania Ltd | 99 | |
| PMG Group (Tanzania) Ltd | 101 | |
| Premier Electric Contractors Sole Proprietorship | 103 | |
| Salem Construction Ltd | 104 | |
| Skol Building Contractors Ltd | 106 | |
| Swachen Enterprises Ltd | 108 | |
| Tanzania Buildings Agency | 109 | |
| Wapo Scaffolding (Tanzania) Ltd | 110 |
