Local contractors gain budget support

THE government has set aside 10 per cent of its annual development budget to finance hands-on training projects, as part of efforts to boost participation of local contractors in infrastructure development.

Acting Chief Executive of the Tanzania National Roads Agency (TANROADS), Engineer Ephatar Mlavi, said in Dodoma on Monday that the move aims to build capacity among Tanzanian contractors while improving the quality of road and bridge projects.

He said the initiative includes four projects worth 53.6bn/-, which have been specifically allocated to local women contractors as part of practical training.

“The government has introduced deliberate measures to increase the participation of local contractors, including reserving all maintenance works for them and allocating 10 per cent of the development budget for training projects,” he noted.

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Eng Mlavi noted further that despite ongoing efforts, the participation of local contractors in major projects remains low, with their share estimated at only 10 per cent, prompting the government to intensify interventions.

“To address this, we have prioritised local contractors in both road and bridge maintenance works, which are now 100 per cent reserved for them and supervised by local consultants,” he said.

According to Eng Mlavi, on average, 1,036 projects worth over 390bn/- are implemented annually by local contractors, while at least 30 per cent of the development budget is set aside to benefit special groups, including youths, women, the elderly and persons with disabilities.

He said reforms in public procurement laws have also expanded opportunities for local firms, increasing the value threshold of projects reserved for them from 10bn/- to 50bn/-.

Eng Mlavi further highlighted the success of the Contingent Emergency Response Component (CERC) programme, under which 81 emergency bridge projects were implemented in 22 regions following destruction caused by El Niño rains and Cyclone Hidaya between 2023 and 2024.

“Out of the 81 projects, 70, equivalent to 74 per cent and worth over 412bn/- are being implemented by local contractors,” he said.

He stated that by March 2026, 76 projects had reached substantial completion, while the remaining few in Dar es Salaam, Kagera, Katavi, Lindi, Ruvuma and Songwe Regions, at final stages. Beyond infrastructure delivery, TANROADS is also investing in skills development through on-the-job training programmes for students and graduates.