Challenges facing Tanzania’s construction industry

The construction industry in Tanzania is witnessing substantial growth, with large infrastructure projects underway and significant investments pouring into the sector. Dhruv Jog, Managing Director of Advent Construction and YPO member, sheds light on the challenges and opportunities facing the construction industry in Tanzania in a recent interview on CNBC Africa. The construction sector in Tanzania is experiencing a surge in infrastructure projects, with some of the largest projects ever undertaken in the country. Despite this growth, the industry is still dominated by foreign contractors, limiting the participation of local construction companies. Dhruv Jog emphasizes the importance of expanding opportunities for Tanzanian contractors to be more actively involved in the sector. One of the key challenges facing the construction industry in Tanzania is the need for constant innovation and adherence to global best practices. Dhruv Jog highlights the importance of staying ahead of the pack in terms of business practices, quality standards, and service delivery. Advent Construction has obtained ISO accreditation, which has significantly raised the quality standard of the business and enhanced transparency, ethics, and efficiency. While large-scale infrastructure projects contribute to the sector's growth, there is also a promising opportunity in low-cost housing developments. Tanzania faces a shortage of over 300,000 residential units in Dar es Salaam alone, presenting a significant market for mid and low-end housing projects. These smaller-scale projects offer high margins and scalability, making them an attractive investment opportunity in the construction sector. The East African integration has facilitated expansion opportunities for Tanzanian companies like Advent Construction to operate in neighboring countries such as Uganda, Rwanda, and Kenya. The shared language and ease of doing business within the region have streamlined cross-border operations and supported the growth of the construction industry. Looking ahead, Dhruv Jog expresses optimism about the potential for further growth in the construction sector in Tanzania. With the government's focus on promoting local participation and the ongoing development of infrastructure projects, Tanzanian contractors are poised to seize new opportunities and contribute to the industry's expansion. The construction industry in Tanzania is a key driver of economic growth, creating employment opportunities and stimulating investment. As the sector continues to evolve and adapt to changing market conditions, companies like Advent Construction are at the forefront of innovation, setting new standards for excellence and sustainability in the industry.