This study has been prepared as part of a series of studies on 'Natural resources, structural change, and industrial development in Africa' as part of a larger UNU-WIDER research project on 'Jobs, poverty and structural change in Africa'.

The construction sector—via, for example, housing, roads, bridges, water, health, and power infrastructure—is a key enabler for social and economic development worldwide. In Tanzania, the sector growth rate is well above the general economy and has maintained positive growth in response to the country’s investments in commercial and residential buildings and infrastructure projects. Despite the promising growth over recent decades, the sector encounters bottlenecks and challenges in the areas of access to land, construction permits, skills, and availability of materials and equipment that hinder the potential of the sector as a contributor for achieving the vision of reaching middle-income country status. The structure of the sector, underlying policies, challenges, and recommendations are at the centre of discussion in this chapter.

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