Tanzania seeks to expand private sector role in infrastructure development

NAIROBI: TANZANIA is seeking to strengthen investment in major infrastructure projects through Public-Private Partnerships (PPPs), drawing lessons from Kenya’s experience in attracting private investors and establishing sustainable financing mechanisms for development projects.

Minister for Works, Masanja Kungu Kadogosa, said Kenya’s experience in implementing PPP projects offers valuable lessons for Tanzania as it seeks to expand private sector participation in strategic infrastructure development, particularly in the roads sector.

He made the remarks in Nairobi, Kenya, during the 16th Africa Public-Private Partnership Conference, which brought together stakeholders from various countries to discuss strategies for strengthening investment in development projects.

Mr Kadogosa said Tanzania was continuing to develop and implement strategies for using the PPP model in various infrastructure projects, noting that learning from Kenya would help identify best practices, attract private investors and address potential challenges in project implementation.

He said discussions held on the sidelines of the conference also explored investment opportunities in Tanzania’s road infrastructure, particularly the Kibaha–Chalinze, Chalinze–Morogoro, Morogoro–Iringa and Igawa–Tunduma road projects.

According to Mr Kadogosa, one of the key issues discussed was Kenya’s establishment of the Kenya National Infrastructure Fund, whose capital is estimated at three billion US dollars.

He said the fund was designed to support infrastructure financing and reduce investment risks that could otherwise discourage private investors from participating in PPP projects.

Mr Kadogosa stressed that adopting similar approaches could help Tanzania improve its investment environment, broaden financing sources and increase private sector participation in the implementation of major infrastructure projects.

He added that effective use of the PPP framework could accelerate the implementation of strategic projects by reducing sole reliance on government budgetary resources while creating opportunities for private investors to participate in financing and operating infrastructure projects under agreed arrangements.

The conference brought together stakeholders from Kenya, Uganda, France, Tunisia, Ivory Coast and Senegal, among other countries, to exchange experiences and discuss strategies for strengthening public-private cooperation in financing and implementing development projects across Africa.

The initiative is in line with Tanzania’s Development Vision 2050, which seeks to build a competitive and inclusive economy through investment in modern infrastructure, increased private sector participation and accelerated implementation of strategic development projects.