Contribution of the Sector
This report focuses on the Tanzanian construction industry, which has continued its steady growth throughout 2015, with a second quarter contribution to GDP of 13.2%, compared to average annual GDP for 2015 of an estimated 7%. The growth in the construction sector has been supported by the overall growing economy, the rapid urbanisation rate, increased population growth, and gains in the transport, infrastructure development and communications sectors.
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. There are still significant challenges faced by the country, the most pressing being the inauguration of the incumbent President Dr John Magafuli, disputes surrounding the recent elections, the annulment of the election in Zanzibar, slow economic growth in China, the aftermath of the Burundian coup crisis, general international perceptions of East Africa, as well as general infrastructural, health, and developmental challenges. Problems also exist within the construction industry, caused mainly by corruption and a lack of quality from local contractors.
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 27 companies active in the sector, including Advent Construction, one of Tanzania’s major local construction companies. Also profiled are smaller companies such as COWI Tanzania Ltd, which has 100 employees and specialises in infrastructure development, and construction consultancy GMP Consulting Engineers Ltd, which has ten permanent employees and is based in Tanzania.