TANZANIA is leading the East African bloc in terms of infrastructural projects in terms of value.<\/p>\n
The country, second largest economy in the EAC, according to the Africa Construction Trends Report 2019, registers a total project value of 60.3 billion US dollars last year.<\/p>\n
Tanzania total share of projects stands at 41.2 per cent being the largest potion in East Africa\u2019s total investment value as per consultancy firm Deloitte report issued last month.<\/p>\n
The projects that upped the country position is the new Likong\u2019o-Mchinga LNG plant, worth 30billion US dollars which also is one of the most valuable project in the region.<\/p>\n
The LNG once completed, the plant is expected to contribute about 7.0 per cent towards the country\u2019s economic growth. Also, Tanzania is tied with Kenya in terms of infrastructure projects, both recording 51 projects in 2019. Regionally, Kenya was behind Tanzania accounting for only 24.6 per cent or 36 billion US dollars of the region\u2019s total project value.<\/p>\n
Overall the total number of projects in East Africa rose by 30.9 per cent between 2018 and 2019, with the region currently recording 182 projects under construction.<\/p>\n
Kenya\u2019s rail project is expected to contribute towards boosting trading activities in Kenya, thus, placing the country at the centre of East Africa\u2019s rail network.<\/p>\n
Now African countries; Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda account for 40.3 per cent of projects across the continent and 29.5 per cent of the value.<\/p>\n
The total value of construction projects had increased by 67.6 per cent between 2018 and 2019, from 87 billion US dollars to 146 billion US dollars. The increase stemmed from investments in large infrastructure.<\/p>\n
The transport sector continues to take the lead within the sectoral break down by value. The sector accounted for 30 per cent (44 billion US dollars) of the region\u2019s total projects by value, followed by oil and gas (27.5 per cent) and then the energy and power (20.9 per cent) sectors.<\/p>\n
East Africa has encountered several transport infrastructure challenges in the past years, thus making transport investments a priority to ensure a reliable transportation network.<\/p>\n
As a result, the sector recorded the highest number of projects–69 projects out of 182, followed by the energy and power sector with 40 projects, 22 per cent and Real Estate with 35 projects 19.2 per cent.<\/p>\n
The high number of transport projects came from investments in rail, road and airport projects. Projects in East Africa are mainly owned by government accounting for 79.1 per cent, while private domestic companies own 6.6 per cent.<\/p>\n
East Africa relies on external funding for most infrastructure projects. The region\u2019s project funding is dominated by China\u201420.9 per cent; down from 25.9 per cent last year\u2014while governments account for 13.7 per cent of total funding.<\/p>\n","protected":false},"excerpt":{"rendered":"
TANZANIA is leading the East African bloc in terms of infrastructural projects in terms of value. The country, second largest economy in the EAC, according to the Africa Construction Trends Report 2019, registers a total project value of 60.3 billion US dollars last year. Tanzania total share of projects stands at 41.2 per cent being […]<\/p>\n","protected":false},"author":84,"featured_media":3298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[293,300,1869],"class_list":["post-3297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-eac","tag-east-african","tag-likongo-mchinga-lng-plant"],"yoast_head":"\n