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The Construction Industry Value Chain

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THE CONSTRUCTION INDUSTRY VALUE CHAIN

DBA ASSIGNMENT
PRESENTATION BY HENRY B NJUGUNA, ESAMI
THE CONSTRUCTION INDUSTRY IN KENYA AND
TANZANIA: UNDERSTANDING THE MECHANISMS
THAT PROMOTE GROWTH.
The construction industry is a very important one. Globally the annual value of the construction industry is of the order of 1.5 trillion dollars constituting about 8% of
GDP and about 60% of fixed capital formation. It is one of the most relevant forces of the world economy representing 7% of its total employment. In Kenya and in
Tanzania, the construction industry is a key indicator and driver of economic activity and wealth creation
The construction sector involves the construction of a wide range of public and private sector …show more content…

contractors also use them as advisors and in assisting in project management

Client comprise the public sector [government] , the private sector as well as individuals Banks and financial institutions provide financial services and advice to resource manufactures, contractors, consultants and clients
Recourse manufacturers, transporters and contractors all require a variety of equipment and machinery as well as spare-parts. These are provided for by the
Equipment manufacturers and retailers.

Building Construction Value Chain:
Structure
Metal Hardware
(Production/ Import
/Wholesale)

Sand, Earth & Gravel
Cement Industry

Mining
(Limestone,
Gravel stones, Marble)

Forestry

Concrete Pipes
Hollow Blocks
Concrete Tiles
Marble Production

Logging Sawmills

Sanitary Ware
Electricals
Paints&Lacquer

Consultants
General
Contractors

Specialist
Contractors
Retail Trade

Timber

Clients- Govt/Private Sector

Metalworks & Furniture

Furniture

Transport Services, Energy & Water
Equipment & Spare Parts
Banking,Financial & Business Services,

FIGURE 2: THE BUILDING CONSTRUCTION VALUE CHAIN AND THE POSITIONING
OF VARIOUS ACTORS

HENRY B. NJUGUNA enghbnjuguna2@yahoo.com [ESAMI updated Sept. 2008]Page 4

Part 2- THE CONTRIBUTION AND POSITIONING OF THE VARIOUS
PLAYERS WITHIN THE VALUE CHAIN

Labour
15 – 30 %

Financial
Inputs
10 – 15 %

Raw materials 30 – 50 %

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