Tanzania Construction Industry Report 2025: Following Growth Of 6.2% In 2025, Output To Grow At An AAGR Of 7.2% Between 2026-2029, Driven By Cross Border Transport And Water Infrastructure Investments

(MENAFN- GlobeNewsWire - Nasdaq) Tanzania's construction industry is set for growth driven by infrastructure investments in manufacturing, transport, and energy. Rising FDI, US trade ties, and projects like the TAZARA railway refurbishment present key opportunities. Water infrastructure bolstered by German grants enhances sector prospects.

Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) -- The "Tanzania Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)" report has been added to ResearchAndMarkets's offering.
Construction industry in Tanzania to grow by 6.2% in real terms in 2025, supported by investments in manufacturing, transport and energy infrastructure projects. According to the Tanzania Investment and Special Zones Authority (TISEZA), the country registered 201 investment projects worth TZS6.2 trillion ($2.3 billion) between July and September 2025.

The main sectors attracting the most capital were manufacturing, commercial building construction, and transportation. Rising foreign direct investments (FDI) is also expected to bolster industry growth in the coming quarters. According to the Tanzania Investment Centre, FDI inflows to Tanzania rose 21.6% year-on-year (YoY), from TZS14.6 trillion ($5.4 billion) in the fiscal year (FY) 2023-24 (July 2023 to June 2024) to TZS17.8 trillion ($6.6 billion) in FY2024-25. The government is further targeting TZS40.4 trillion ($15 billion) in FDI by 2026.

To achieve this target, the Tanzanian government is pushing for deeper US ties. In the Tanzania-US Trade and Investment Forum that was held in September 2025, the Vice President of Tanzania has pitched the mining sector, highlighting the country's abundant mineral reserves. In addition to mining, the Tanzanian government is also seeking US investment in the agro-processing, pharmaceutical, and logistics sectors, among others.
The Tanzanian construction industry is expected to register an average annual growth of 7.2% between 2026 and 2029, supported by investments in cross border transport infrastructure, water infrastructure projects. In October 2025, China Civil Engineering Construction Corporation (CCECC) signed a TZS3.8 trillion ($1.4 billion) deal to refurbish and operate the 1,860km Tanzania-Zambia Railway (TAZARA), which connects Zambia's Copperbelt to the port city of Dar es Salaam in Tanzania.

This agreement combines an initial investment of TZS3 trillion ($1.1 billion), with an additional TZS641.4 billion ($238 million) reinvested into the severely degraded railway, involving extensive track rehabilitation, upgrades to workshops, and maintenance. Additionally, in July 2025, Tanzania has signed three grant agreements totaling TZS78.58 billion ($29.2 million) with Germany, facilitated by the German Development Bank (KfW).

These agreements aim to support essential projects related to water supply, climate resilience, and natural resource conservation. One component of the funding is designated to assist water utilities in obtaining loans for the construction or reconstruction of their systems.

Report Scope

• Historical (2020-2024) and forecast (2025-2029) 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 our 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 business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:
1. Executive Summary
2. Construction Industry: At-a-Glance
3. Latest news and developments
4. Project analytics
5. Construction Market Data
6. Risk Profile
7. Appendix

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