KILIMANJARO: THE recent Christmas and New Year period brought an economic surge to the Kilimanjaro Region, as traders, construction workers and local vendors experienced a significant boost in their businesses.
The rush to complete construction projects before the holidays saw a spike in the demand for building materials, leading to increased sales, rising prices and a thriving local labour market.
This festive season created a wave of economic activity that benefitted not only the construction sector but also various small businesses across the region.
Surge in Building Material Demand
The holiday season in Kilimanjaro saw a sharp increase in the demand for building materials, as many people pushed to complete their construction projects before the festive period.
Key finishing materials like floor tiles, paints, electric cables, aluminum windows, wall putty and cement were particularly in demand. Traders capitalised on this rush, with many stores across Moshi Municipality hiring extra manpower and extending working hours to keep up with customer demands.
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For Ms Grace Massawe, a plumbing materials seller in Moshi, the holiday period proved exceptionally profitable.
“My sales this month are equivalent to what I usually sell over four months,” she said, noting that many customers were either building new homes or renovating existing ones with the aim of moving in by Christmas.
The increased demand wasn’t limited to just Moshi; customers from neighbouring districts like Hai, Rombo, Siha and even as far as Mwanga flooded into the municipality to complete their construction projects before the holiday break.
Price Increases and Logistics Challenges The increased demand for construction materials led to price hikes across various sectors.
The price of cement, for example, rose from 15,500/- to 17,500/- per bag, while the price of locally made floor tiles increased from 28,000/- for a box of 40×40 tiles to 33,000/- and from 40,000/- to 47,000/- for 50×50 tiles.
These increases were driven by the high demand and limited supply of materials, as many suppliers struggled to meet the surge in orders. The price of construction labour also saw a significant rise. Local masons and skilled workers, such as carpenters and electricians, were in high demand, which drove up the rates for their services.
Alfred Mushi, a mason from Moshi, shared that tiling services typically cost between 3,000/- and 5,000/- per square metre but were raised to between 8,000/- and 10,000/- per square metre during the festive period, depending on the urgency of the work.
Similarly, the cost of constructing cement blocks increased significantly, with prices rising from 200/- per block to between 600/- and 800/-.
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The increased demand for materials and labour also led to logistical challenges, including a shortage of cargo trucks and delayed deliveries. Transportation costs spiked during this period, with rates for transporting materials from Moshi to nearby areas like Njia Panda and Uru Seminary rising by up to 90 per cent.
For example, hiring a truck for a trip from Moshi to Njia Panda, approximately 26 kilometres away, went from 40,000/- to between 65,000/- and 75,000/- per trip, while transport to Uru Seminary rose from 35,000/- to 45,000/-.
Opportunities for Local Labourers and Vendors
The festive season’s construction boom was not limited to material sales; it also created significant opportunities for casual labourers and local vendors. Students and small business owners took advantage of the increased demand for services.
Mr Revocatus Paschal, a third-year student at Mwenge Catholic University (MWECAU), said he used his short December holiday to engage in casual labour, earning between 25,000/- and 40,000/- per day depending on the type of work.
Tasks like plastering and tiling provided steady work for many labourers, especially during the holiday season. Kiba Lyimo, a plumber from Kimanganuni Village in Moshi Rural, shared his experience of handling multiple construction projects simultaneously.
“It was the peak time,” he said, “I had to hire extra workers to help me meet the demand of my contracts.” Mr Lyimo said that his work was spread across several locations, with two of the construction sites in his home village and the third in Singida, a two-day job.
The rush forced him to travel at night, work for two days and then return home. Local vendors also capitalised on the influx of construction workers by providing food and refreshments. Joyce Komu, a fruit vendor and mother of three from Okaseni Village in Moshi Rural, saw an opportunity to sell meals to the workers at nearby construction sites.
“The workers were grateful for the food and it was a great way to supplement my income,” she explained.
Ms Komu offered meals at affordable prices, ranging from 1,500/- to 2,000/- per plate. She, like many others, benefitted from the seasonal demand for services and supplies.
Impact Beyond the Construction Sector
While construction-related businesses saw the most significant gains, the ripple effect of the end-year construction boom was felt throughout the region. Small businesses, such as food vendors and transport services, also saw increased demand.
The holiday period thus provided a significant economic boost to many sectors, from retail to transport, further demonstrating the interconnected nature of the region’s economy.
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However, this boom also highlighted some of the challenges that come with rapid economic growth. As prices for materials and labour soared, some builders struggled with affordability and others faced delays due to logistical issues.
Despite these challenges, the holiday period ultimately proved to be an economic lifeline for many in Kilimanjaro, contributing to a vibrant and active local economy during the festive season.
Challenges Amid the Boom
The end-of-year holiday season in Kilimanjaro brought a mix of challenges and opportunities for local businesses, labourers and traders. The construction sector saw a major boom, driving up demand for materials and labour, while small businesses capitalised on the influx of workers with food and services.
While logistical issues and rising prices created some hurdles, the overall impact was a significant economic benefit for the region, highlighting the importance of seasonal demand in driving local economic activity.
“The festive season will remain a key driver of economic prosperity to us in the region,” said Mr Livin Mushi, a businessperson at Kariwa Village in Uru ward, Kilimanjaro.
