Businessman and economist Rostam Azizi has urged the Tanzanian government to give local contractors a fair chance to participate in major construction projects. Speaking at the African Construction and Mining Excellence Awards (ACAMEA) Gala Dinner on November 7, 2026, Azizi emphasized that the country's growing investment in infrastructure should be accompanied by efforts to build the capacity of local companies. He noted that the success of infrastructure development should not be judged solely by completed projects, but also by the growth of Tanzanian companies and the skills they acquire.
Azizi questioned why the government could not introduce measures similar to those in the mining sector to support the growth of local contractors in construction. He cited the mining sector as an example of how deliberate government intervention could expand opportunities for domestic businesses. Azizi commended the government for strengthening local participation through local content policies, legislation, and regulations, including amendments introduced in 2025.
According to Azizi, requirements for partnerships and the reservation of certain mining-related activities for Tanzanian-owned companies demonstrate how targeted policies can help domestic businesses develop the capacity to compete for larger contracts. However, he emphasized that the effectiveness of local content policies should be assessed by looking beyond the number of contracts awarded to Tanzanian companies to consider the capital they accumulate, jobs they create, and technology they acquire.
Azizi argued that empowering local companies should not mean compromising quality or limiting competition, but rather creating conditions in which capable domestic firms could develop and compete fairly. He observed that Tanzanians sometimes placed greater confidence in foreign companies to deliver major projects while questioning whether locally owned firms had the expertise to undertake comparable assignments.
Azizi challenged the assumption that domestic contractors lacked the necessary capabilities, arguing that some had simply not been given sufficient opportunities to prove themselves. He cited major infrastructure developments, including the Standard Gauge Railway (SGR) and the Julius Nyerere Hydropower Project, and questioned the perception that Tanzanian companies were incapable of undertaking significant components of such projects.
Azizi acknowledged that major infrastructure developments required specialised technical expertise, financing, technology, equipment, and sound management. However, he argued that these capabilities could be developed through investment, recruitment of experts, and strategic partnerships. He warned against using a lack of experience as a justification for excluding local contractors, saying companies could not acquire the necessary expertise without being given opportunities to participate in major projects.
Azizi stressed that increasing local participation was not about awarding contracts to Tanzanian companies regardless of their capabilities, but identifying competent firms and giving them a fair opportunity to compete for major projects. He urged the government to assess how much domestic business capacity was being created through its infrastructure spending, including the number of local companies that had grown and contractors who had acquired new capabilities and technical expertise.
Key points
- Rostam Azizi urges the Tanzanian government to support local contractors in major construction projects to build domestic business capacity.
- Azizi cites the mining sector as an example of how government intervention can expand opportunities for domestic businesses.
- He emphasizes that increasing local participation is not about compromising quality or limiting competition, but creating conditions for capable domestic firms to develop and compete fairly.
