PPP potential at risk without strong budget backing

DAR ES SALAAM: AS Tanzania accelerates toward the ambitions of Development Vision 2050, one truth is becoming increasingly difficult to ignore: the success of Public-Private Partnerships (PPPs) will not be determined at the signing table, but at the preparation stage.

For too long, project preparation has been treated as a technical formality rather than a strategic investment. Yet stakeholders are right to describe it as the decisive factor in unlocking investment. Without well-prepared, bankable projects, even the most promising ideas remain trapped on paper, unfunded, delayed, or abandoned before they ever reach implementation.

The numbers tell a story of progress. PPP investments have grown significantly in recent years, reflecting renewed political will and institutional reforms. Legal improvements, increased technical expertise and rising public awareness all signal a maturing framework capable of supporting complex partnerships. But beneath this progress lies a persistent bottleneck: a shortage of bankable, investor-ready projects.

This is where a dedicated PPP Facilitation Fund becomes indispensable. Preparation is not cheap, nor should it be undervalued. It requires detailed feasibility studies, legal and financial due diligence, risk assessments, environmental considerations and strong stakeholder alignment. These are the building blocks that give investors confidence and reduce uncertainty. Without them, private capital—no matter how abundant, will remain cautious, selective and often reluctant.

More importantly, preparation is what aligns private incentives with public priorities. In its absence, investors may naturally gravitate toward high-return ventures that do little to address broader national development needs. Properly funded preparation ensures that critical sectors such as infrastructure, housing, transport and social services are not only viable, but also inclusive, balanced and impactful.

Critically, the argument for funding PPP preparation is not about increasing public expenditure, but about multiplying it. Every shilling invested at this stage has the potential to attract significantly more in private capital, while reducing costly delays, disputes and renegotiations that often arise from poorly structured projects.

Tanzania cannot afford to rely solely on taxes and loans to finance its development agenda. PPPs offer a viable pathway to mobilise domestic and international investment, deepen financial markets, stimulate innovation and create sustainable employment opportunities.

As the government finalises the 2026/27 budget, the message from stakeholders is clear: fund the foundation. A dedicated allocation for PPP project preparation is not a luxury, it is a strategic necessity for transforming ambition into execution and vision into lasting, inclusive growth.