East Africa Build 2019
Organizer: INSTA TRADE
Visiting Hours: 10:00-18:00
Number of Regulation: 1
Participation Area: 4.500
Number of Countries: 10
Number of Visitors: 15.000
Since becoming independent in the early 1960s, Tanzania has earned a reputation as one of the most stable political systems in Africa.
Huge gas deposits have been found in the country, providing auxiliary infrastructure investment and a boost to future government revenues.
Tanzania’s strategic location on East Africa makes it unique for trading both locally and also with resourcefully rich Central Africa. The country’s maritime access makes it vital to landlocked countries for the import and export of goods. Ugandan government’s decision to direct its export oil pipeline through Tanzania is the latest proof of Tanzania’s advantageous location.
With an annual average growth forecast of 8% up to 2020, Tanzania is probably the fastest growing country in Sub-Saharan Africa. The development of transport infrastructure, supported by international funding flows, will be the primarily driver of construction industry expansion, as the government works to improve the country’s logistics profile and capitalize on its maritime access. Construction industry value is projected to rise from an estimated USD 5.1bn to USD 15.3bn in 2025, keeping Tanzania as the largest construction market in East Africa. Increasing activity in non-residential construction supports the strong industry growth.
Currently in the planning stages is a 2,200km intraregional rail network extending from Dar es Salaam to Rwandan capital Kigali, and connecting with cities in Burundi, Uganda and the Democratic Republic of Congo. Construction of a flyover in the capital city Dar es Salaam, at the junction of the Tanzania-Zambia Railway Authority headquarters and Mandela Expressway, is scheduled to start. The aim is to reduce overall transit time and costs and provide a more reliable transport method. Chexim announced it was lending the Tanzanian government USD 7.6bn to carry out the project.
The government is eager to improve its road networks, and received a loan from the African Development Bank (AfDB) worth USD 364.4mn for its Transport Sector Support Programme, which involves rehabilitating and upgrading around 500km of roads. The upgrades will benefit trade between Tanzania and its neighbours Malawi, Mozambique, Zambia and the DRC. Tanzania signed a USD 400mn loan deal with the Japanese government to boost the construction of roads.
Construction is under way at Dar es Salaam Port, the country’s main port which is responsible for around 95% of all Tanzania’s export and import volumes. As part of the country’s Vision 2025, the government is seeking to increase its port capacity. The World Bank has provided loans for both projects, amounting to approximately USD 1.28bn. Also in the pipeline is a new oil terminal jetty, which is currently in the tender phase.
The expansion of the Julius Nyerere International Airport is undergoing its second phase at a cost of USD 110mn. With the main terminal building, parking, access roads, platforms and a taxiway complete, the company will now undertake the design and construction of additional terminals, expected to handle the increased international traffic. The 60,000sqm terminal building will increase the total annual capacity to six million passengers.
The demand for hotel rooms is exceeding the supply in Dar es Salaam and highlights opportunities for growth in the construction sector.
Increasing number of investment activities and the vital tourism industry are driving the need for international hotels and lodges in strategic areas. Dar es Salaam is currently experiencing a shortage of hotel rooms as the economy expands and the government is eager to attract investment to boost the tourism sector’s competitiveness in the region.
Tanzania is the shining star of East Africa
Being one of the most stable political systems and resourcefully one of the richest countries in Africa, Tanzania has all spots turned on it. Huge infrastructural and residential constructions are already being funded, planed and undergoing. To become a part of the booming construction activities in the country, we hereby invite you to take part in East Africa Build 2018 exhibition.