Tanzania's building and construction sector looking at a massive rise in investments

TANZANIA is seeing an unprecedented growth in construction sector in recent years, mushrooming all over the map are new houses, multi-storey buildings, roads and bridges, and this trend has contributed to the surging demand for building materials. Massive government funding on infrastructure projects every financial year has acted as a catalyst for continued inflows of investments in the building and construction industry. Over the last five years activities in the construction sector have grown at an annual rate of 8 per cent. For the Tanzanian economy to grow, it needs well developed transport infrastructure like roads, bridges, railways as well as efficient telecommunication network.

 
According to the Bank of Tanzania (BoT), an increase in the construction sector has been due to the high govt expenditures like the construction of standard rail gauge, bridges, airports and highways, expansion of ports as well as ongoing renovation of rail gauges. The construction sector in Tanzania includes real estate, transport infrastructure and other public works, including water sources.
 
The real estate sector in Tanzania contributed 4 percent of the country's real GDP. According to the 2025 Development Vision of the country, investment in Tanzania's infrastructure, particularly in the development of the road network, must be a top priority for the government.
 
The World Bank (WB) and the African Development Bank (AfDB) are supporting Tanzania in achieving its infrastructure development goals by providing grants and project loans.
 
The focus of AfDB-funded projects in Tanzania is mostly on infrastructure development and governance. In 2019, AfDB authorized a USD 272.12 million loans to Tanzania for the development of a new international airport in the capital city of Dodoma. The research will be carried out over four years, including a passenger terminal, a runway, air navigation equipment.
 
The new facility is designed to accommodate at least 50,000 aircraft and one million passengers each year, half of which will be worldwide. It will promote and serve more than 200 million passengers in East Africa, as well as foreign trade networks, and in particular business travelers and visitors.
 
In the same year, the AfDB accepted a EUR 345 million funding package for road-building in Tanzania and Kenya. The road is a core component of the East African transport corridor network linking Tanzania and Kenya. Producers, manufacturers and traders will be able to move goods faster and cheaper

Posted on : 03 Jul,2025

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