Market Size of Tanzania Construction Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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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.
