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Tanzania Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

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    Report

  • 20 Pages
  • May 2022
  • Region: Tanzania
  • GlobalData
  • ID: 5610513
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The publisher 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:

  • Tanzania’s construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Tanzania’s construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Tanzania. It provides:
  • Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Tanzania, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using the publisher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1. Construction Outlook2. Construction Industry: At-a-Glance3. Latest News and Developments4. Project Analytics5. Construction Market Data6. Risk Profile
7. About the Publisher
7.1 Definitions
7.2 CRI Methodology
List of Tables
Table 1: Construction Industry Key Data
Table 2: Tanzania, Top Construction Projects by Value
Table 3: Tanzania, Construction Output Value (Real, $ Million)
Table 4: Tanzania, Construction Output Value (Nominal, TZS Billion)
Table 5: GlobalData Construction Market Definitions
Table 6: Risk Dimensions
Table 7: Ratings, Scores and Definitions
List of Figures
Figure 1: Tanzania, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2017-26
Figure 2: Tanzania, Construction Output Value, by Sector (Real, $ Million), 2017-26
Figure 3: Sub-Saharan Africa, Construction Output (Real % Change), 2020-26
Figure 4: Tanzania, Construction Output by Sector (Real % Change), 2020-22 and 2023-26
Figure 5: Tanzania, Construction Value Add (TZS Million, 2015 Constant Prices)
Figure 6: Tanzania, Real Estate Value Add (TZS Million, 2015 Constant Prices)
Figure 7: Tanzania, Commercial Bank Lending for Building and Construction (TZS Billion)
Figure 8: Tanzania, Manufacturing Value Add (TZS Million, 2015 Constant Prices)
Figure 9: Tanzania, Accommodation and Restaurant Value Add (TZS Million, 2015 Constant Prices)
Figure 10: Tanzania, Healthcare and Education Sector Value Add (TZS Billion, 2015 Constant Prices)
Figure 11: Tanzania, Construction Projects Pipeline, Value by Stage ($ Million)
Figure 12: Tanzania, Risk Summary
Figure 13: Tanzania, Risk Regional Comparison