Businessman and economist Rostam Azizi has spoken out against the dominance of foreign contractors in Tanzania's major infrastructure projects. He warned that the country risks missing opportunities to develop domestic businesses and retain more wealth within its economy. Azizi emphasized that local contractors need time, access to opportunities, and confidence from project owners to build their capacity and compete effectively with foreign firms. This, he believes, is crucial for the growth of Tanzanian companies.
Azizi's comments come as Tanzania continues to implement large-scale infrastructure projects. He urged stakeholders to assess contractors based on their technical and financial capabilities rather than their country of origin or nationality. According to Azizi, a contractor's ability is measured by their professionals, financial capacity, track record, safety standards, and quality of work. He argued that this approach would help create a competitive construction industry with several domestic companies capable of securing projects both at home and abroad.
While acknowledging the contribution of foreign companies in bringing expertise and technology into Tanzania, Azizi cautioned against the assumption that overseas contractors are automatically more capable than locally owned businesses. He opposed the perception that a foreign company is capable simply because it is foreign, while a Tanzanian company is considered incapable simply because it is locally owned. Azizi emphasized that ability is not measured by a passport.
Azizi argued that awarding more major contracts to Tanzanian companies would help retain a greater share of project spending within the domestic economy. He cited the example of South Africa, where domestic contractors have been able to undertake major infrastructure and mining projects. Azizi also pointed to the local workforce at telecommunications company YAS and gas company Taifa Gas as evidence of Tanzanians' ability to manage complex business operations.
YAS employs approximately 1,500 people, with all but one being Tanzanian, while Taifa Gas has more than 700 employees, all of them Tanzanians. Azizi used these examples to challenge the argument that locally owned companies cannot undertake major construction assignments. He questioned why domestic contractors continued to secure only a limited share of major infrastructure projects despite the growing pool of technical professionals in the country.
According to Azizi, foreign companies account for approximately 97 per cent of the value of road construction and other building projects. He called for greater scrutiny of these figures as part of efforts to strengthen local participation. Azizi challenged the government to introduce measures similar to those implemented by the Ministry of Minerals to expand opportunities for Tanzanian-owned businesses.
Azizi warned that without deliberate government intervention, Tanzania could remain heavily dependent on foreign contractors for major infrastructure projects over the next two decades. He urged the government to act without delay, emphasizing that continued reliance on foreign contractors meant more project-related money could flow out of the country instead of supporting the growth of domestic businesses.
Key points
- Rostam Azizi questions the dominance of foreign contractors in Tanzania's infrastructure projects.
- Azizi emphasizes the need for domestic businesses to grow and compete with foreign firms.
- He warns that without government intervention, Tanzania may remain dependent on foreign contractors for major projects.
