The expansion of employment opportunities in the building construction sector in the context of structural adjustment: some evidence from Kenya and Tanzania

The implementation of structural adjustment programmes in many countries of sub-Saharan Africa has impacted on the construction sector in a number of ways. One effect has been a shift in production from the public to the private sector. Another is the liberalisation of markets and break-up of monopolies in the building materials industries. Presenting evidence from Tanzania and Kenya the paper argues that these changes have led to a fall in the volume of work passing through the more formalised systems of production and an increase in activity in the ‘informal’ systems. Informal production systems use ‘artisanal’ methods and are characterised by an intensive use of labour, both in on-site construction and in the production and distribution of building materials. This is an efficient (low cost) and appropriate way of working in a context of capital scarcity and an urgent need for employment creation. The expansion of artisanal activity in the informal systems is therefore seen as a beneficial outcome of economic reform. The implications for policy are assessed.