The Tanzania construction sector continues to be one of the most exciting sectors in the Tanzanian economy.
The sector is currently experiencing a period of growth primarily driven by the recent developments in the roadwork, housing and mining industries.
The growth rate of the sector increased to 11.9% in 2005/06 from 10.8% in 2004/05 and the contribution of construction activity to the overall GDP rose to 5.7% in 2005/06 compared to a contribution of 5.4% in 2004/05.
The government is looking to continue making gains in the construction sector and is hoping to repeat and improve upon the recent gains made by the sector.
The combined sectors of works infrastructure, transport and communications are paramount to the process of development and poverty reduction within Tanzania.
The effectiveness of these sectors directly contributes to the creation of economic opportunities such as the ease of market access; increased competition; encouragement to trade, tourism and foreign investment; contribution to government revenue and increased employment opportunities.
“We would like to increase the growth rate so as to be able to address poverty issues,” says Hon. Basil Pesambili Mramba, the formerly appointed Minister of Infrastructure Development and currently appointed Minister of Industries, Trade and Marketing.
According to Hon. Mramba, increasing the growth rate will help the country to attain its Millennium Development Goals through the infrastructure sector.
The ministry is hoping to fund the projects through partnerships with the private sector and they are inviting experienced investors to participate in the sector.
“There are legal handicaps which we have to work on,” says Mramba, “but at least we want to invite private sectors from Tanzania and abroad who have experience with the construction of housing estates for low cost people and medium and very few high cost people.”
The Tanzania Ministry of Infrastructure Development has recently been seeking investors from the USA, the Middle East and from South Africa.
According to Hon. Mramba the infrastructure sector still welcomes donors, who finance 40% of Tanzania’s national budget.
Indeed, the donor communities tend to invest in the Tanzania infrastructure sector primarily through the roads.
Today, according to Mr. Kesogukewele Msita, Executive Secretary of the National Construction Council, “the private sector is now considered to be the engine of growth in Tanzania.”