Tanzania Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Tanzania Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects Tanzania’s construction industry to grow by 4.4% in real terms in 2023, following growth of 4% in 2022, supported by the increased investment in the development of the railways, roads, and airport infrastructure. According to Tanzania Investment Centre (TIC), total public and private investment in new construction projects rose by 52.4% in the first three months of 2023, increasing from TZS1.8 trillion ($787.4 million) in Q1 2022 to TZS2.8 trillion ($1.2 billion) in Q1 2023. Out of the total, domestic investment accounted for 76% and foreign investment accounted for 24%. The industry’s growth in 2023 will also be supported by rising bank credit and stable interest rates. According to the Bank of Tanzania, the central bank, the total value of loans granted by domestic banks for building and construction activities rose by 12.2% year on year (YoY) in 2022, following an annual decline of 9.4% in 2021.

The construction industry’s growth in 2023 will also be supported by a reduction in wholesale and retail prices of petrol, diesel and kerosene prices, as reported by the Energy and Water Utilities Regulatory Authority (Ewura) in March 2023 compared to the prevailing prices in February 2023. The construction industry's growth in the short term may be affected by downside risks such as construction delays resulting from financial setbacks in the Housing Development Program Project carried out by the Tanzania Building Agency (TBA).

The construction industry in Tanzania is expected to record annual average growth of 7.9% over the remainder of the forecast period (2024-27), supported by developments in transport, housing, and industrial infrastructure. The government also aims to increase the renewable capacity from 127MW in 2021 to over 6,000MW by 2025. In March 2023, the energy company Astra Energy Inc announced its decision to construct an energy park on an area of 80.9ha of land on Unguja Island. Upon completion, the project will add 50MW of clean and renewable energy. In addition, Tanzania Electric Supply Company Ltd (TANESCO) is planning to construct a 150MWp solar PV power plant in Shinyanga. With an investment of TZS69.3 billion ($300 million), the construction works are expected to commence in Q1 2024 and end in Q4 2026.

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 (2018-2022) and forecast (2023-2027) 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 GlobalData'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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.