Tanzania Construction Market Size (2024 - 2029)

The market size of the construction industry in Tanzania is projected to experience growth over the forecast period, driven by significant investments in infrastructure and industrial construction. Despite challenges such as a decline in commercial banks' lending to the private sector due to the COVID-19 pandemic, the government's focus on developing infrastructure, energy, and agriculture sectors aims to enhance economic growth and expand export opportunities. The industrial construction sector is particularly vital for boosting national self-sufficiency, creating jobs, and increasing exports of processed goods, thereby contributing to the overall expansion of the domestic market.

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Market Size of Tanzania Construction Industry

Tanzania Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 5.62 Billion
Market Size (2029) USD 7.07 Billion
CAGR (2024 - 2029) 4.67 %
Market Concentration Low

Major Players

Tanzania Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Tanzania Construction Market Analysis

The Tanzania Construction Market size is estimated at USD 5.62 billion in 2024, and is expected to reach USD 7.07 billion by 2029, growing at a CAGR of 4.67% during the forecast period (2024-2029).

  • According to the Bank of Tanzania's (BoT) quarterly economic bulletin, commercial banks' lending to the private sector declined by 2.3% in March 2021, owing to the impact of the COVID-19 outbreak on the demand and supply of various products. Building and construction, trade, agriculture, manufacturing, mining, and quarrying were the economic activities that saw negative growth rates. Construction credit declined by 11.9%, while commerce and farm credit declined by 10.3% and 8.1%, respectively.
  • In recent years, Tanzania's heavy investment in building infrastructure has raised its indebtedness, as more infrastructure projects are being built around the country. Fiscal spending in 2021 was USD 15.7 billion, with donors covering only 8% of the total. From 2021 to 2023, the government anticipates the economy to grow at a rate of 6.3%. Tanzania was promoted from a low-income country to a lower-middle-income country in July 2020, with the government hoping to reach middle-income status in seven years. Tanzania's government is working to develop its infrastructure, energy, and agriculture sectors to grow its economy and expand export opportunities.
  • Tanzania's industrial construction has played a key role in boosting national self-sufficiency and enhancing the domestic market for agriculture, livestock, fishery, forestry, minerals, and precious raw materials. Industrial construction is critical for job creation, technological transfer, and increased processed goods exports, in addition to enhancing self-sufficiency and boosting the domestic raw materials market. Through the TEMDO initiative, the value chain for several commodities and products has increased over the last decade, particularly for sugar and hemp. The TEMDO project entails the creation of cutting-edge technology for the manufacturing and processing sugarcane and hemp products.

Tanzania Construction Industry Segmentation

Construction is the installation, maintenance, and repair of buildings and other stationary structures and the construction of roadways and service facilities that form fundamental components of structures and are required for their operation.

A complete background analysis of the Tanzania Construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, geographical trends, and COVID-19 impact is included in the report.

The Tanzania Construction Market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utilities). The market size and forecasts are provided in terms of value (USD) for all the above segments.

By Sector
Residential
Commercial
Industrial
Infrastructure (Transportation)
Energy and Utilities
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Tanzania Construction Market Size Summary

The construction industry in Tanzania is poised for significant growth, driven by substantial investments in infrastructure and industrial projects. The sector is characterized by a mix of domestic and international players, with key companies such as Advent Construction Ltd, Estim Construction, Becco Limited, Salem Construction Limited, and Mohammedi Builders Ltd actively participating in the market. The government's focus on developing infrastructure, energy, and agriculture sectors aims to boost the economy and expand export opportunities, contributing to the country's transition from a low-income to a lower-middle-income status. Initiatives like the TEMDO project and the development of a comprehensive railway network are pivotal in enhancing national self-sufficiency and improving trade connections with neighboring countries. The construction of the railway infrastructure, funded through loans, is expected to play a crucial role in connecting Tanzania's Indian Ocean port with key inland cities, thereby facilitating increased trade.

The Tanzanian construction market also faces challenges, particularly in the housing sector, where a significant portion of homes are self-built, often leading to suboptimal quality. The government, through the Tanzania Mortgage Refinance Company (TMRC) and the Housing Microfinance Fund (HMFF), is working to expand access to affordable housing finance, aiming to increase the availability of mortgage loans and support low-income earners in home construction and improvement. Despite these efforts, the demand for housing units remains high, with estimates indicating a need for substantial additional units annually. The market's fragmentation, with a large number of microentrepreneurs operating in the informal economy, underscores the need for continued development and support in the sector. Collaborative efforts with international partners, such as the joint venture between Adani Group and AD Ports, further highlight the strategic importance of Tanzania's construction industry in regional logistics and infrastructure development.

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Tanzania Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic and Construction Market Scenario

    2. 1.2 Technological Innovations in the Construction Sector

    3. 1.3 Insights into Supply Chain / Value Chain Analysis

    4. 1.4 Impact of Government Regulations and Initiatives on the Industry

    5. 1.5 Review and Commentary on the Extent of Government Infrastructure Development Schemes

    6. 1.6 Comparison of Key Industry Metrics of Tanzania with Other Countries

    7. 1.7 Comparison of Construction Cost Metrics of Tanzania with Other Countries

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Industrial

      4. 2.1.4 Infrastructure (Transportation)

      5. 2.1.5 Energy and Utilities

Tanzania Construction Market Size FAQs

The Tanzania Construction Market size is expected to reach USD 5.62 billion in 2024 and grow at a CAGR of 4.67% to reach USD 7.07 billion by 2029.

In 2024, the Tanzania Construction Market size is expected to reach USD 5.62 billion.

Tanzania Construction Market Report Snapshots

Construction Industry in Tanzania Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)