PUBLISHER: GlobalData | PRODUCT CODE: 1089700
PUBLISHER: GlobalData | PRODUCT CODE: 1089700
GlobalData expects Tanzania's construction industry to grow by 6.6% in 2022, following growth of 4.3% in 2021 - a relatively modest growth rate when compared to annual average growth of 14.3% between 2016-19. In recent years, construction has been a major contributor to economic growth with increased investments in infrastructure, such as the construction of railways, roads, and an airport, as well as spending on improving the provision of a wider and more reliable electricity network, the improvement of transportation services and the increase in the extraction of minerals, especially gold and coal. The government has also improved its fiscal position, benefiting from increased collection of taxes and improved efficiency in government operations. Additionally, the government has secured loans worth about TZS7 trillion ($3 billion) at concessional rates through the African Development Bank (AfDB), the International Monetary Fund (IMF) and the World Bank. The industry is expected to pick up momentum owing to resumption of public, as well as private investments.
Tanzania continues to attract foreign direct investment (FDI); the country registered 295 investment projects worth TZS18.9 trillion ($8.1 billion) between March 2021 and February 2022. Among the major ongoing and upcoming infrastructure projects includes the cross-country Standard Gauge Railway (SGR) project, to connect to Rwanda, Uganda and further to Burundi and the Democratic Republic of Congo. In December 2021, Turkey's Yapi Merkezi secured the contract for the construction of a 368km segment of SGR project, which is the third phase of a 1,219km track that will be built in five phases. The TZS4.4 trillion ($1.9 billion) contract will be finished in 46 months and will connect Makutopora and Tabora in Tanzania's central region.
Over the medium to long term, the construction industry will be driven by the success in pushing ahead with major liquefied natural gas (LNG) projects and significant support from the IMF. In November 2021, the government announced that construction works on the planned TZS70.1 trillion ($30 billion) LNG plant at Lindi are expected to commence by 2023 and be completed by 2028, following the resumption of negotiation between the government and Norway's Equinor and Anglo-Dutch Shell. In September 2021, the IMF approved TZS1.4 trillion ($567.25 million) in emergency financial assistance under the Rapid Credit Facility and Rapid Financing Instrument. The government announced that the fund will be used to implement infrastructure development projects in the education, water, health, and tourism sectors.
The report provides detailed market analysis, information, and insights into Tanzania's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Tanzania. It provides -