THE Tanzania United Contractors and Allied Services Association (TUCASA) has urged the government to address significant overdue payments owed to many of its members.

Samuel Marwa, TUCASA Chairman, said in a statement yesterday that the delayed payments, linked to government contracts that have been completed, have severely impacted the operations and financial stability of numerous companies, threatening the future of Tanzania’s construction and supply sectors.

“TUCASA’s members include contractors, construction material suppliers and equipment providers, all of whom have met their obligations in good faith by delivering essential infrastructure projects and supplying critical materialism,” he said.

He said despite fulfilling their responsibilities, the businesses have faced prolonged delays in receiving payment from the government, with some waiting for years.

“The situation is becoming increasingly unsustainable as contractors are burdened with rising costs from unpaid bank loans, mounting interests and growing pressure from other creditors. The consequences of the overdue payments are severe,” he said.

Marwa detailed that many contractors currently struggle to meet their financial obligations with some companies facing insolvency or being forced to consider liquidation. I

In addition, in an effort to reduce operational costs, many companies have been forced to lay off workers, leading to significant job losses and economic hardship for many Tanzanian families.

“With insufficient cash flow to sustain their operations, several companies are at risk of shutting down, which threatens the future of Tanzania’s construction industry and the availability of reliable infrastructure services. The current crisis forces companies to make difficult decisions just to survive,” he said.

Marwa said that without immediate intervention from the government, the consequences will extend far beyond individual businesses and affect the broader Tanzanian economy, including jobs, livelihoods and key national development projects.

“TUCASA urges the government to act swiftly to release the funds owed to contractors and suppliers. This is not only critical for the survival of individual companies but also for the stability of Tanzania’s infrastructure and protection of jobs for thousands of Tanzanians,” he said

He further called for the government to establish a clear and transparent timeline for disbursing the overdue funds and implement measures to prevent similar delays in future contracts.

He said TUCASA remains committed to working with government agencies to find a viable solution that secures the future of Tanzania’s construction industry and provide relief to struggling businesses and their employees.

Last week, a section of Members of Parliament said that longstanding debts owed to contractors and suppliers providing services in public schools need to be paid by the government as some face foreclosure by banks due to unpaid loans.