Do you want to start a business in the construction industry in Tanzania?
Congratulations for your great choice. Construction in Tanzania is a sector worthy USD 6.7 billion. Opportunities in this sector are vast.
If this article is too long to read and you have limited time then it might be better to contact us and discuss your interest.
We will be able to guide you accordingly.
Introduction
The construction sector in Tanzania is growing fast.
This growth is one of the main drivers of the country’s fast growing economy.
Undoubtedly, this presents more business opportunities in the construction sector.
The opportunities are mainly in the following areas:
- Manufacturing of construction and hardware materials.
- Trading of hardware materials (retail and wholesale).
- Importation and sale of construction and hardware materials.
- Contracting or sub contracting (building, civil, mechanical, electrical, and specialist).
- Architect and design.
- Real estate.
- Renting out construction equipments
Performance and Growth of Tanzania Construction Sector
The construction sector in the country was determined to be worthy USD 6.7 billion in 2018 compared to USD 4 billion in 2014.
In other words, the sector grew by an average of 17% per year.
That growth was driven by infrastructure development and increase in manufacturing of hardware and construction materials.
Regulation of Construction Sector in Tanzania
The construction sector in Tanzania is regulated by the Ministry of Works, Transport and Communication (MoWTC) and its agencies, bodies, and boards.
MoWTC is responsible for formulating policies, planning, overseeing and overall coordination of the sector.
The institutions under the MoWTC that deal directly with the construction sector include:
1. Tanzania Building Agency (TBA)
Tanzania Buildings Agency (TBA) is a government’s Executive Agency under the Ministry of Works (MoW).
The Agency has been primarily mandated to provide quality accommodation to Government and public servants.
It’s also mandated to provide building consultancy services to the Government.
The Agency was established in May 2002 in accordance with the Executive Agencies Act No. 30 of 1997 as a transformation of the Building Department (BD) within the Ministry of Works (formerly known as the Ministry of Infrastructure Development).
TBA Address: Opposite karimjee Hall, P.O.Box 9542, Dar es Salaam, Tanzania. Fax : +255 22 2114143. Phone No : +255 22 2122163/ 2117114. Email : ce@tba.go.tz/ barua@tba.go.tz
2. Tanzania National Roads Agency (TANROADS)
The Tanzania National Roads Agency (TANROADS) is an Executive Agency under the Ministry of Works, Transport and Communications.
It was established under section 3(1) of the Executive Agencies Act (Cap 245).
The agency came into operation in July, 2000.
The Agency is responsible for the maintenance and development of the trunk and regional road network in Tanzania Mainland Classified Road Network. The total classified road network in Tanzania Mainland is estimated to be 86,472 km based on the Road Act 2007.
TANROADS Address: TANROADS Headquarters. P.O. Box 11364, 3rd Floor, 10 Shaaban Robert Road/Garden Avenue, Dar es Salaam.Tel: +255 22 2926001-6. Fax: +255 22 2926011. E-mail: tanroadshq@tanroads.go.tz. Website: www.tanroads.go.tz
3. Tanzania Rural and Urban Roads Agency (TARURA)
The Tanzania Rural and Urban Roads Agency (TARURA) is an executive agency under President’s Office Regional Administration and Local Government (PORALG).
The agency was established under the Executive Agencies Act Cap. 245.
The primary objective of the agency is to develop and maintain District roads network (Collector, Feeder and community) in the Tanzania mainland.
TARURA Address: TARURA HOUSE GOVERNMENT CITY -MTUMBA, P.O BOX 11042, DODOMA. Telephone: 026-2963846. Email: ceo@tarura.go.tz. Website: www.tarura.go.tz.
4. Tanzania Electrical, Mechanical, and Service Agency (TEMESA)
The Tanzania Electrical, Mechanical and Electronics Services Agency (TEMESA) is an executive agency under President’s Office Regional Administration and Local Governance (PORALG).
The agency was established under the Executive Agencies Act Cap 245.
The primary objective of the agency is to provide:
- efficient and effective electrical, mechanical and electronic services.
- reliable and safe ferry transport services.
- hiring of equipment to government institutions and the public at large.
The agency has the following functions:
- Undertake an effective maintenance of Government Owned Motor vehicles, motor cycles and Plants;
- Undertake an effective maintenance of Electrical, Electronics/ICTs, Air Conditioning and Refrigeration systems in all Government Buildings;
- Operation and maintenance of Traffic Signals and Street Lights;
- Hiring of transport for Government VIPs;
- Hiring of Plants and Equipment to Government Institutions and the Public at large;
- Ensure safe operation and maintenance of all Government Owned Ferry Services;
- Provision of quality Technical Advice and Consultancy services in Engineering Works and related services to Government institutions and the Public at large;
- Provision of quality Technical Advice and Consultancy services on new installations related to Engineering Works and Services;
- Design and supervise new installations related to Engineering Works and Services.
TEMESA Address: Makole Road, P.O. BOX 1075, PSSSF Building, 8th Floor, DODOMA. Phone number: +255-737962496. Toll Free: 0800110379. Email Address : info@temesa.go.tz. Website: www.temesa.go.tz. Telephone: +255 737962496
5. Roads Fund Board (RFB)
Roads Fund Board was established by The Road Tolls (Amendment No.2) Act 19981 (RFB 2018). It started operations in 2000 with the mandate of:
- advising the roads minister on new sources for road and fuel tolls.
- adjustment of the rates of existing roads and fuel tolls.
- regulations for the collection of road and fuel tolls for the purpose of ensuring an adequate and stable flow of funds to road operations.
The RFB is also the main source of funding for the maintenance of the road network in Tanzania.
RFB Address: Njedengwa Investment Area, Block D, Plot No. 3, P.O.Box 993, Dodoma, Tanzania. Tel: +255 26 2963277/8. Fax: +255 26 2963279/80. E-mail: info@roadsfund.go.tz. Website: www.roadsfund.go.tz.
6. National Construction Council (NCC)
National Construction Council is a consultative body responsible for promoting and providing strategic leadership for growth, development, and expansion of the construction sector.
This is done with an emphasis on the development of local capacity.
Other functions of the council are:
- advising the government on all matters relating to the development of the construction industry and to formulate proposals and recommendations for their implementation;
- providing advisory services and technical assistance to construction industry stakeholders on all matters related to the construction industry;
- promoting and co-ordinate quality training for persons engaged, or to be engaged in the construction industry;
- promoting, conducting and coordinating research on all matters related to construction industry;
- providing and promoting the documentation and dissemination of construction industry related information including establishment of a register of projects and directory of construction materials and equipment;
- monitoring and promoting the development and implementation of standards, regulations and codes of practices on all matters related to the construction industry;
- promoting the use of innovative technologies and the application of best practice in the construction industry;
- promoting and establish forums for enhancing industry-wide co-ordination, collaboration and discussion on matters related to the construction industry;
- benchmarking, monitoring and evaluating the performance of the construction industry;
- soliciting and managing the fund for training of personnel in the construction industry;
- promote quality management including provision of technical auditing services in the construction industry;
- promoting environmentally sustainable construction practices including health and safety aspects;
- promoting the export of goods and services related to the construction industry; and
- facilitating efficient resolution of disputes in the construction industry.
Address of NCC: P.O. Box 70039, Samora Tower, 9th Floor – Mansfield Street, Dar es Salaam, Tanzania. Email Address: info@ncc.go.tz. Phone: +255 22 2131321/+255 22 2135553 Fax: +255 22 2118887 Hotline: +255 22 2110869
7. Contractors’ Registration Board (CRB)
CRB is a government agency that registers and regulates all types of contractors and sub contractors.
Under the laws of URT, you can not operate any civil, mechanical, building, or electrical contracting or sub contracting activity without CRB registration.
The Board keeps and online (publicly) accessible database of registered contractors.
The said database shows that the board has registered a total of 9024 contractors as of July 2021.
Why the government started this board?
The board saves a very important purpose of protecting consumers of construction services in Tanzania.
How to register with Contractors Registration Board?
We have an article coming soon that will give details of the requirements and procedures to be followed to be registered with CRB.
CRB HQ Address: 3rd floor, Tetex House, Pamba Road, P.O Box 13374, Dar-es-salaam. Phone: +255 22 2131169/2137962-3, +255 22 2137964, Email: crbhq@crbtz.org. Website: www.crb.go.tz.
8. Engineers’ Registration Board (ERB)
ERB is a government agency that registers and regulates engineers and engineering firms. The Board has the following functions:
- maintaining and keeping a register of engineers, including consulting engineers or firms providing engineering services;
- to consider and decide on applications for registration;
- promoting and providing opportunities and facilities for the, study of and for professional training in engineering;
- to sponsor, arrange and provide for facilities for conferences, seminars, workshops and consultations on matters related to the field of engineering;
- to promote and maintain professional conduct and integrity of the engineering profession;
- monitoring the conduct and activities of engineers, including consulting engineers or firms,
- to arrange for the publication and dissemination of materials produced in connection with the work and activities of the Board;
- certifying academic awards given by training institutions for consideration in an application made under section 10;
- planning, arranging, coordinating and overseeing the professional training of local graduate engineers;
- to collaborate with the Tanzania Commission for Universities and other relevant institutions on the accreditation of programs for training of engineers and facilitate for the same;
- inspecting sites where there is ongoing construction, installation, erection, alteration, renovation, maintenance, processing, or manufacturing works for the purpose of verifying that only appropriate engineers undertake the engineering activities.
- to enter and inspect business offices for verification purposes or for monitoring works, services and goods rendered by engineers and engineering technicians;
- to suspend any works, projects, service, installation, process or other engineering activities that don’t meet engineering professional requirements;
- taking legal action against persons or firms that practice engineering without being valid registrations by the Board;
- to take legal action against engineers and Engineering Consulting Firms that practice engineering or offer engineering consultancy services in areas outside their registrations;
- to conduct examinations for purpose of registration and grant certificate, diplomas and other awards of the Board to successful candidates;
- imposing penalties on engineers, persons, employers of engineers, firms and engineering consulting firms found guilty of professional misconduct for contravening any provisions of this Act;
- to collaborate with local engineering training institutions, professional association and other organizations in matters related to training, professional development of engineers, engineering technicians, and other relevant Board activities;
- to provide a link between engineers seeking employment and prospective employers”.
- carrying out such other functions as the Minister may, from time to time direct after consultation with the Board.
9. Architects’ and Quantity Surveyors’ Registration Board (AQRB)
AQRB is a government agency that registers and regulates engineers and engineering firms. The Board has the following functions:
- Register and maintain registers and sub-registers of architects, quantity surveyors and their firm, graduate architects, graduate quantity surveyors, architectural technicians, architectural draughtsmen, both local and foreign, and to make decisions on applications for their registration, annually
- Prescribe fees for application, registration, annual subscription and other fees as may be required.
- Regulate the activities and conducts of architects, quantity surveyors and their firms, graduate architects, graduate quantity surveyor architectural technicians, and architectural draughtsmen.
- Enter building sites and inspect building or construction works for the purpose of verifying and ensuring that the works are being undertaken by a registered architectural or quantity surveying firms and that the works complying with all governing regulations and laws of the country including requirement for safety an erection of signboard which shows the title of the project, names, addresses, phones and e-mails of the client, architect, quantity surveyor, project registration stickers and to take legal action against defaulter thereof.
- Promote, monitor and provide continuing professional development opportunities and facilities for the study and training in architecture, quantity surveying and allied subjects.
- Conduct examinations or professional interviews for purpose of verifying the competence to practice as professionally qualified architects or quantity surveyors or as to the adequacy of practical training in architecture or quantity surveying as may be approved by the board
- Conduct examinations or professional interviews for purpose of verifying the competence to practice as professionally qualified architects or quantity surveyors or as to the adequacy of practical training in architecture or quantity surveying as may be approved by the board
- Arrange for publication and general dissemination of materials produced in connection with the work and activities of the board
- Liaise with other institutions involved in architecture, quantity surveying and allied matters.
- Grant professional certificate and other awards of the board for examinations conducted by the board.
- Take disciplinary action against architects, quantity surveyors and other semi professional registered by board.
- Register construction works or projects.
- Offer advisory services to the public and the construction industry.
- Liaise with both local and international profession boards and associations involved in the construction industry for the purpose of consultations, exchange of ideas, and experiences
- Promote and enforce professional conduct, ethics and integrity of architect, quantity surveyor and firms practicing or operating in Tanzania
- Administer and regulate architectural competition
- Promote awareness and educate the public on the public professionals of the architecture and quantity surveying as well as the duties and responsibilities of architect and quantity surveyors
10. Public Procurement Regulatory Authority (PPRA)
PPRA is a government authority charged with regulatory functions and vested with oversight powers and responsibilities on all public procurement activities carried by all public bodies in the mainland Tanzania.
The Authority has the following primary objectives:
- ensure the application of fair, competitive, transparent, non-discriminatory and value for money procurement standards and practices.
- set standards for the public procurement systems in Tanzania.
- monitor compliance of procuring entities.
- build, in collaboration with Public Procurement Policy Division and other relevant professional bodies, procurement capacity in Tanzania.
The market for construction sector in Tanzania
The construction sector in Tanzania grew from USD 4 billion in 2014 to USD 6.7 billion in 2018 to USD 9.1 billion in 2021. The sector is expected to grow to USD 14.2 billion in 2025.
You can join the construction sector by investing in:
- manufacturing of construction and hardware materials,.
- trading of construction and hardware materials.
- importation of construction materials.
- contracting and sub contracting construction works.
- architect and design.
- real estate.
Other players in the Tanzania construction sector
1. Tanzania Institute of Quantity Surveyors (TIQS)
TIQS is a professional institute for Quantity Surveyors in Tanzania.
The TIQS is a platform for professional advancement, networking & promoting professional excellence.
2. Architects’ Association of Tanzania (AAT)
Architects Association of Tanzania (AAT) is a body of Architects established in 1982.
It has been providing technical support to Architects and Quality surveyors Registration Board (AQRB).
AAT is affiliated with several international organizations. These include:
- International Union of Architects (UIA).
- Africa Union of Architects (AUA).
- Common wealth Association of Architects (CAA).
- East Africa Institute of Architects (EAIA).
3. Institute of Engineers Tanzania (IET)
The Institute of Engineers Tanzania (IET) is a non-profit organization and a voluntary engineers registration organization that strives to uphold Excellence in Engineering profession Tanzania.
The objectives of IET are:
- Working with the Government and other stakeholders to promote policies that stimulate the development and excellence in the engineering industry.
- Contributing to excellence in building through the promotion of world-class ethical standards and educational programs;
- Compiling focused research and analysis to inform investment decisions, policy analysis, and public education;
- Providing a forum where professional and non-professional engineers can share expertise and build a professional society.
4. Association of Civil Engineering Consultants of Tanzania (ACET)
ACET is a professional association established as a voluntary non-profit organization in 1985 for common interest of civil engineers in Tanzania.
Through ACET, Consulting Engineers have a unified and assertive voice that communicates the value and importance of their work to the government, private sector and general public.
5. Tanzania Civil Engineering Contractors’ Association (TACECA)
TACECA was established on 17th May 1996 with a key founding goal of creating an enabling environment where local contractors can share their experiences, pool resources for capacity development, and create a common forum to articulate their activities and engage with government and other stakeholders.
6. Contractors’ Association of Tanzania (CATA)
7. Association of Citizen Contractors of Tanzania (ACCT)
 Kessy Juma is the founder of Miamia Trading Company (miamiatz). He is a Techpreneur with roots in accountancy. He believes that any business is good as long as it caters to the right market using the right strategy. 
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