Public-Private Partnerships seen as catalyst for long-term National development

DODOMA: THE Executive Director of the Public-Private Partnership Centre (PPP Centre), David Kafulila, has said that the Public-Private Partnership (PPP) model is one of the key tools used by many countries around the world to enhance the efficiency of public institutions, a factor that has significantly contributed to economic growth.

Kafulila made the remarks on June 3, 2026, during a public lecture organized by the University of Dodoma (UDOM), where he explained that there are three main reasons driving the global adoption of the PPP model.

He identified these reasons as attracting private sector capital for public projects, improving institutional efficiency, and fostering innovation.

According to Kafulila, international experience shows that the economic success of many nations depends not only on natural resources but, more importantly, on the efficiency of their institutions and their ability to utilize those resources productively.

“In some developed countries, approximately 25 percent of national wealth is generated through institutional efficiency, while natural resources contribute only about five percent,” Kafulila said.

He further explained that such achievements do not mean those countries lack natural resources; rather, they have invested in building strong systems that enable those resources to contribute more effectively to development.

Kafulila noted that China produces more gold than any country in Africa, the United States has larger oil reserves than many nations worldwide, and Russia possesses more natural gas than any African country. However, the strength of their economies is primarily driven by human capital, innovation, and highly efficient institutions.

He said the PPP model not only helps mobilize funding for development projects but also strengthens public sector efficiency and encourages innovation, both of which are essential for achieving a country’s long-term development goals.

In a separate discussion, Kafulila stated that tax incentives for certain productive sectors remain important when they deliver tangible results in attracting investment and reducing production costs.

According to him, some investments require substantial start-up capital, and tax exemptions can help lower those costs and create a more business-friendly environment for investors.

Meanwhile, Kafulila said he would like to see the University of Dodoma introduce a Master’s Degree in Public-Private Partnerships (Master’s in PPP) to increase the number of local professionals with the expertise needed to manage partnership projects effectively.