BMI View: Tanzania's construction and infrastructure sector outlook is buoyant over our 10-year forecast period to 2024, although we expect 2015 to present a number of challenges to investment and have dropped our real growth forecasts accordingly - from 9.9% to 7.9%. Broad investor sentiment will be boosted by USD500mn in foreign budget support - withheld following a power sector scandal in late 2014. In the long-term, regional transport development and power sector projects will be key growth drivers.
There are number of key developments, which underpin our upbeat medium-term forecast scenario:
The Tanzanian government plans to float a USD1bn eurobond for FY15/16. The proceeds will be used to finance the country's mega infrastructure projects. According to Finance and Economic Affairs Minister Saada Mkuyu, the government is fully prepared to float the Eurobond by March 2016 and will outline the main projects to be financed by the bond in the next Budget. Tanzania's successful issuance of the Eurobond will help the country in its quest to become East Africa's economic hub. Some of the projects initiated by the country include Bagamoyo port construction, expected to start operating in July.
Our view over the proliferation of intermodal and urban rail projects across Sub-Saharan Africa (SSA) continues to play out. We have seen persistent efforts by governments - nationally and internationally - to boost interconnectivity and address the chronic congestion in cities across the continent. Structural changes in economic patterns in the region are driving the development of the project pipeline. While rail projects for the export of commodities will continue to be a source of opportunity, particularly in Southern African coal producing markets, lower commodity prices will see a gradual shift of rail demand drivers towards the transportation of people and goods. Rapid urbanisation, rising incomes and a small, but growing middle class, will support further investment...
The Tanzania Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Tanzania Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Tanzanian infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Tanzania to test other views - a key input for successful budgetary and planning in the Tanzanian infrastructure market.
- Target business opportunities and risks in the Tanzanian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Tanzania.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.