Tanzania’s value of infrastructure projects now surpasses Kenya’s
Kenya and Tanzania recorded the same number of infrastructure projects (51) in 2019 according to the latest Africa Construction Report by Deloitte. However, Tanzania’s share of projects by value stood at 41.2% or US$60.3bn, making it the largest contributor to East Africa’s total project value.
The numbers show that Tanzania edged out Kenya for the first time in the value of infrastructure projects. Kenya accounted for only 24.6% (US$36bn) of the region’s total project value during the period.
East Africa saw a rise in the total number of construction projects by 30.9% between 2018 and 2019, with the region currently recording 182 projects under construction.
Regionally, East African also recorded for the highest number of projects with Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda accounting for 40.3% of projects across the continent and 29.5% of the value.
The total value of construction projects increased by more than half of the previous year (67.6%), from US$87bn to US$146bn. Much of the value is attributed o large infrastructure projects such as Phase II of the Kenya Standard Gauge Railway Project and Tanzania’s new Likong’o-Mchinga LNG plant worth US$30bn.
The plant was identified as the most valuable project in the region during the period.
Transportation projects accounted for 30% (US$44bn) of the region’s total projects by value taking up 69 out of the 182 projects. This was followed by Oil & Gas (27.5%) and the Energy & Power sector (20.9%). Real Estate sector accounted for 19.2% of the projects.
The report also shows that most projects in East Africa are still largely government-owned (79.1%), while Private Domestic companies own just 6.6% of the projects.
On funding, the region’s project funding is still dominated by China (20.9%) which is a drop from 25.9% last year. Governments contributed 13.7% of total project funding while International and African direct foreign investments accounted for 13.2% and 12.6% of the funding
East Africa’s most popular contractor remains the Chinese who built 40% of the projects (down from 54.7% last year). Both Private Domestic companies and EU Countries construct 14.8% of projects.