The Tanzania Construction Market Report is Segmented by Sector (Residential, Commercial and Infrastructure), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site and Modern Methods of Construction), by Investment Source (Public and Private) and by Region (Dar Es Salaam, and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The Tanzanian construction market, valued at $5.62 billion in 2025, exhibits robust growth potential, projected to expand at a compound annual growth rate (CAGR) of 4.67% from 2025 to 2033. This growth is fueled by significant investments in infrastructure development, particularly within the transportation sector (roads, railways, ports) driven by government initiatives to improve connectivity and facilitate economic expansion. The residential sector also contributes substantially, spurred by urbanization and a growing middle class demanding improved housing. Commercial construction, although a smaller segment, is witnessing steady growth due to rising foreign investment and the development of modern office spaces and shopping malls. Energy and utilities projects, focused on expanding electricity access and improving water infrastructure, further contribute to market expansion. However, challenges remain, including inconsistent government policies, bureaucratic hurdles, and fluctuating material prices, which can potentially restrain market growth. The competitive landscape is characterized by both large national firms like Advent Construction Ltd and Estim Construction, and smaller, regional players. Future growth will likely be influenced by the government's continued focus on infrastructure development and its success in streamlining regulatory processes. The market segmentation reveals a diversified portfolio of projects. Infrastructure, notably transportation, is a key driver, accounting for a significant share of the market due to extensive government-led projects. Residential construction constitutes the largest segment, reflecting the country’s population growth and increasing urbanization. Commercial construction, while smaller than residential, is experiencing steady expansion fuelled by the influx of foreign investment and the associated need for modern commercial spaces. The energy and utilities sector contributes to market growth through investment in power generation, distribution, and water management projects. The geographical distribution of projects is likely uneven, with major urban centers experiencing higher construction activity compared to rural regions. Successfully navigating regulatory complexities and securing financing will be crucial for sustained growth in the coming years. Recent developments include: August 2022: Adani Group (APSEZ), an Indian port giant, and AD Ports (Abu Dhabi Ports) have signed an agreement to work together to pursue Tanzanian strategic investment possibilities. The joint venture partners intended to provide end-to-end logistics infrastructure and services, including rail, ports, maritime services, digital services, and industrial zones in Tanzania., March 2023: Tanzania to award contracts for USD 30 billion LNG project. Shell, Equinor, and the government of Tanzania have finalized negotiations for constructing a USD 30 billion LNG terminal, and contract preparation is underway.. Key drivers for this market are: Increasing Investment in Infrastructure Projects, The rising popularity of sustainable architecture. Potential restraints include: Increasing Investment in Infrastructure Projects, The rising popularity of sustainable architecture. Notable trends are: Increasing Investment in Infrastructure Projects.

The Tanzanian market for clays for construction and industrial use rose significantly to $719M in 2024, growing by 8.6% against the previous year. Overall, consumption enjoyed strong growth. Consumption of peaked in 2024 and is expected to retain growth in the near future.

GDP from Construction in Tanzania decreased to 5426128 TZS Million in the fourth quarter of 2024 from 5616720.87 TZS Million in the third quarter of 2024. This dataset provides - Tanzania Gdp From Construction- actual values, historical data, forecast, chart, statistics, economic calendar and news.

The Tanzania Construction Market was valued at USD 4.67 Billion in 2024 is projected to reach USD 5.62 Billion by 2032, growing at a CAGR of 4.62% from 2026 to 2032.

Tanzania Construction Market: Definition/ Overview

Construction is creating, assembling, or repairing structures, infrastructure, and facilities. This process may comprise a variety of tasks, such as designing, planning, and carrying out projects ranging from residential buildings to industrial facilities and transportation networks.

Furthermore, construction has a wide range of applications. Residential development entails creating homes, apartments, and housing complexes to address the shelter needs of rising populations.

The construction sector contributed 15 trillion Tanzanian shillings (TZS), some 6.7 billion U.S. dollars, to Tanzania's Gross Domestic Product (GDP) from the first to the third quarter of 2021. In 2020, the sector's value added to the economy reached 19.4 trillion TZS (8.4 billion U.S. dollars), the highest since 2015.

The Tanzanian construction sands market declined to $8.1M in 2024, which is down by -1.6% against the previous year. Over the period under review, consumption, however, recorded significant growth. Construction sands consumption peaked at $8.2M in 2023, and then reduced slightly in the following year.

The African construction industry, valued at $58.42 billion in 2025, is poised for significant growth, exhibiting a Compound Annual Growth Rate (CAGR) of 5.07% from 2025 to 2033. This expansion is fueled by several key drivers. Firstly, substantial investments in infrastructure development across the continent are creating a robust demand for construction services. Governments are prioritizing projects related to transportation (roads, railways, ports), energy (power plants, renewable energy infrastructure), and utilities (water and sanitation). Secondly, rapid urbanization and population growth are driving increased demand for residential and commercial construction. The rising middle class and increasing foreign direct investment are further contributing to this demand. Finally, the ongoing development of special economic zones and industrial parks across various African nations is stimulating industrial construction activities. However, the sector faces challenges. These include potential material cost fluctuations, skilled labor shortages, and inconsistent regulatory frameworks in certain regions. Despite these headwinds, the long-term outlook for the African construction industry remains positive, driven by sustained economic growth and infrastructural development needs. The industry's segmentation reveals insights into its dynamics. Commercial construction, driven by the growth of businesses and the need for modern office spaces, and residential construction, fueled by population increase and urbanization, represent substantial segments. Infrastructure (transportation) construction, vital for connecting markets and facilitating trade, also occupies a significant portion of the market. The energy and utilities sector, crucial for supporting economic activity and improving living standards, is also a key area for construction investment. Within construction types, new constructions dominate, although renovations and additions are increasingly relevant due to existing infrastructure needing upgrades. Regionally, South Africa, Sudan, Uganda, Tanzania, and Kenya represent key markets, each with unique construction profiles reflecting their specific economic and developmental stages. The "Rest of Africa" category comprises several emerging markets showing strong growth potential. Leading players in the market include a mix of international construction giants and local companies, indicating a blend of global expertise and local market knowledge. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and is on track for the start of construction of the first utility-scale solar project in Botswana., November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 square meters (62,430 square feet). Teraco’s Durban facility opened in 2011, providing 1MW across 600 square meters (6,460 square feet). In 2018, a previous expansion was announced, adding 1,000 square meters (10,765 square feet) of white space to the site, bringing the total space to 2,000 square meters (21,530 square feet).. Key drivers for this market are: 4., Rapid urbanization driving the market4.; Economic development. Potential restraints include: 4., Political and Regulatory challenges4.; Skills and Labor Shortages. Notable trends are: Infrastructure construction projects driving the market.

Industry (including construction), value added (annual % growth) in Tanzania was reported at 4.8 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. Tanzania - Industry, value added (annual % growth) - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2025.

As of 2020, the share of industrial activities in Tanzania's Gross Domestic Product (GDP) was measured at nearly 30 percent, keeping the upward trend measured since 2015. Construction was the main activity in the sector, with a GDP share of 14.4 percent. Manufacturing followed with 8.4 percent, while mining and quarrying accumulated a share of 6.7 percent.

Statistics illustrates market overview of unit construction machines for working metal in Tanzania from 2007 to 2024.

Industry (including construction), value added (current US$) in Tanzania was reported at 22164309500 USD in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. Tanzania - Industry, value added - actual values, historical data, forecasts and projections were sourced from the World Bank on April of 2025.

In 2024, after two years of growth, there was significant decline in the Tanzanian unit construction machine market, when its value decreased by -5.4% to $1.3M. The market value increased at an average annual rate of +2.3% from 2012 to 2024; the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth appeared the most rapid in 2020 with an increase of 8.6% against the previous year. As a result, consumption attained the peak level of $1.4M.

Tanzania Number of Job Postings: New: Construction data was reported at 6.000 Unit in 14 Apr 2025. This records an increase from the previous number of 1.000 Unit for 07 Apr 2025. Tanzania Number of Job Postings: New: Construction data is updated weekly, averaging 0.000 Unit from Jan 2008 (Median) to 14 Apr 2025, with 902 observations. The data reached an all-time high of 20.000 Unit in 04 Mar 2024 and a record low of 0.000 Unit in 31 Mar 2025. Tanzania Number of Job Postings: New: Construction data remains active status in CEIC and is reported by Revelio Labs, Inc.. The data is categorized under Global Database’s Tanzania – Table TZ.RL.JP: Number of Job Postings: New: by Industry.

The Tools & Construction Supplies eCommerce market in Tanzania is predicted to reach US$20.3m revenue by 2025, reflecting an estimated growth rate of 16% compared to 2024.

Statistics illustrates market overview of machining centres, unit construction machines (single station) and multi-station transfer machines for working metal in Tanzania from 2007 to 2024.

Tanzania TZ: GDP: USD: Gross Value Added at Basic Price: Industry (including Construction) data was reported at 22.164 USD bn in 2023. This records an increase from the previous number of 20.977 USD bn for 2022. Tanzania TZ: GDP: USD: Gross Value Added at Basic Price: Industry (including Construction) data is updated yearly, averaging 4.662 USD bn from Dec 1990 (Median) to 2023, with 34 observations. The data reached an all-time high of 22.164 USD bn in 2023 and a record low of 617.755 USD mn in 1993. Tanzania TZ: GDP: USD: Gross Value Added at Basic Price: Industry (including Construction) data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Tanzania – Table TZ.World Bank.WDI: Gross Domestic Product: Nominal. Industry (including construction) corresponds to ISIC divisions 05-43 and includes manufacturing (ISIC divisions 10-33). It comprises value added in mining, manufacturing (also reported as a separate subgroup), construction, electricity, water, and gas. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 4. Data are in current U.S. dollars.;World Bank national accounts data, and OECD National Accounts data files.;Gap-filled total;Note: Data for OECD countries are based on ISIC, revision 4.

The Tanzanian construction equipment blade market surged to $350K in 2024, picking up by 82% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, showed a noticeable decrease.

The Tanzanian market for tyres for agriculture, forestry, construction, industry and other off the road vehicles surged to $52M in 2024, jumping by 66% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption saw a prominent increase.

In the fourth quarter of 2023, primary activities constituted the largest share of Tanzania's Gross Domestic Product (GDP) in the fourth quarter of 2023, at 40.5 percent. These activities include agriculture, fishing, and mining. Tertiary activities (service sector) followed closely, with a 39 percent. However, secondary activities, which concern industry and construction, had a share of 20.5 percent of the Tanzanian GDP.