Approaches through Which Foreign Companies May Contribute to the Growth of Tanzanian Constructions Industry: a case study of Dares Salaam Region

Construction is major industry throughout the world that accounts for a sizeable proportion of most countries Gross Domestic Product (GDP) and Gross National Product (GNP). All stakeholders in construction industry including contractors, client, organizations, consultants, architectural and surveying consultants’ manufacturers, material supplies and plant leasing companies have a substantial contribution to the development of an industry. This stud generally aimed at examining the approaches through which the foreign companies may contribute to the growth of construction industry in Tanzania. The study used the case of Dar es Salaam region in Tanzania and employed both simple random and judgmental sampling technique to get respondents from selected study units whose sample size was 78. Interviews; questionnaires and documentary review are the methods deployed in data collection. Data was analyzed using EXCEL, ANOVA test was also used to test the hypotheses. This research came up with several key findings pertinent to the problem of the study, it was found competitive projects bidding; payment delay by the client; poor financial bases; and corruption in construction industry in Tanzania are some of the factors that marginalize the performance of local firms in the construction industry. The study also found technological advancement; best equipment; technical skills and financially capability being underpinning factors responsible for the success and dominance of foreign companies in construction in industry in Tanzania. The study also revealed a number of approaches through which foreign companies may contribute to the growth of the construction industry in Tanzania that include, improvement of skills and competence of local experts as a result of their involvement in projects won by foreign firms; establishment of joint ventures and subcontracting with foreign firms in the industry. This study provides several recommends including, local firms must also be trusted and given many construction projects including mega ones; they role of financial institutions in supporting construction firms has to be realized; and the government as well as local firms must essentially invest on relevant trainings ifthey certainly need to secure effectiveness and contribution of construction industry in the national economy Keywords; Foreign Companies, Local Firms, Construction Industry, Tanzania