Editor’s Note: This article was originally published by Research And Markets
Key opportunities in Tanzania’s construction industry lie in expanding transport and energy infrastructure, fueled by significant FDI targets and major projects like the Standard Gauge Railway. This growth, supported by strategic investment priorities, offers ample prospects for contractors, engineering services, and construction materials.
Construction industry in Tanzania to grow by 6.8% in real terms in 2026, supported by investments in manufacturing, transport, and energy infrastructure projects.
According to the Tanzania Investment and Special Zones Authority (TISEZA), the country registered 915 investment projects worth TZS28.3 trillion $10.95 billion) in 2025. Growth in 2026 will also be supported by the government’s target to attract TZS38.7 trillion ($15 billion) in annual foreign direct investment (FDI) by 2026, more than doubling current inflows, with the government promoting opportunities to US investors via the United Nations General Assembly.
Investment priorities include infrastructure, logistics, mining, pharmaceuticals, and digital services, alongside major projects such as the 2,561km Standard Gauge Railway under construction. Increased FDI inflows are also expected to significantly benefit the construction industry by accelerating infrastructure, transport, industrial facilities, and energy project development, boosting demand for contractors, engineering services, and construction materials, while supporting long-term sector growth. The government announced in February 2026 that the country expects to raise its overall spending by 10% to TZS61.9 trillion ($24.3 billion) next fiscal year.
Over the remainder of the forecast period, the Tanzanian construction industry is expected to register an average annual growth of 7.2% between 2026 and 2029, supported by investments in transport infrastructure, manufacturing, water infrastructure projects and energy infrastructure projects. In September 2025, the government revealed that Tanzania is seeking TZS477.7 trillion ($185 billion) in investment over the next five years, equivalent to about TZS95.5 trillion ($37 billion) annually, to support its Vision 2050 strategy aimed at transforming the country into a semi-industrialised economy.
