Govt, PPP projects open doors to jobs and economic growth

DAR ES SALAAM: TANZANIA is banking on investment, infrastructure development and private-sector expansion to turn the ambitions of Dira 2050 into jobs, higher incomes and a more productive economy.

As billions of shillings are committed to railways, roads, ports, airports, energy, industries and social infrastructure, a critical question arises: Can government projects and public-private partnerships (PPPs) create meaningful employment opportunities and stimulate broader economic growth?

Evidence from major strategic projects suggests they can generate substantial employment while opening opportunities for businesses, suppliers, transporters and service providers.

The bigger test, however, is whether such investments can move beyond temporary construction jobs to create sustainable employment, strengthen domestic companies, increase productivity and drive broader economic transformation.

The implementation of Dira 2050 is anchored by the Fourth Five-Year Development Plan (FYDP IV), covering 2026/27– 2030/31, whose theme is “Economic Transformation and Job Creation.”

Presenting the government’s speech on the review and direction of its work and estimates of revenue and expenditure for the Office of the Prime Minister and Parliament for 2026/27 in Dodoma in April this year, the Prime Minister Dr Mwigulu Nchemba said FYDP IV marked the first phase of implementing Dira 2050, with economic transformation and job creation at its core.

This places investment at the centre of the employment agenda. Major projects can create jobs directly during implementation while expanding the productive capacity required to generate employment over the longer term.

Private sector at the centre

The National Planning Commission (NPC) says the private sector is expected to contribute about 70 per cent of Dira 2050 implementation, making private investment and PPPs central to the country’s economic transformation strategy.

The Commission has developed a national guide and strategy for private-sector participation in FYDP IV and Dira 2050, covering project identification, implementation, monitoring and evaluation.

Under this framework, private investment through PPP arrangements and other strategic investments is expected to expand productive capacity, increase formal employment and bring more people into social security schemes.

Speaking at the High-Level Political Forum on Sustainable Development in New York in July this year, Minister of State in the President’s Office, Planning and Investment, Professor Kitila Mkumbo, said the priorities include modern agriculture, industrial development, the blue economy, climate resilience, digital transformation, humancapital development and mobilisation of domestic resources to drive inclusive and sustainable growth. These priorities demonstrate that PPPs are not intended merely to finance infrastructure.

Their broader purpose is to support productive sectors capable of generating goods, services, incomes and employment opportunities.

Vision 2050 seeks to transform Tanzania into an upper middle-income country and build an economy worth about US$1 trillion by 2050, while substantially increasing incomes and creating sustainable employment opportunities.

The Long-Term Perspective Plan 2026/27–2050/51 identifies infrastructure, productive sectors, human capabilities, technological advancement and private investment as important drivers of this transformation.

Projects already creating jobs

The employment impact of major government-led projects is already evident. Government data presented by the Prime Minister’s Office responsible for Labour, Employment and Labour Relations show that major strategic projects have generated tens of thousands of employment opportunities.

The Standard Gauge Railway (SGR) has generated more than 35,000 jobs, while the East African Crude Oil Pipeline (EACOP) created more than 10,000 jobs during its construction phase.

The Julius Nyerere Hydropower Project generated more than 10,000 jobs, while construction of Msalato International Airport in Dodoma created more than 1,500 jobs.

The Kigongo-Busisi Bridge generated more than 1,500 jobs, while the expansion of Dar es Salaam Port created more than 3,000 jobs.

Combined, the six projects account for more than 61,000 project-related jobs at different stages of implementation. However, these figures represent employment generated over different project periods, particularly during construction, rather than permanent positions currently available.

This distinction is important because large infrastructure projects often require thousands of workers during construction, but employment levels may decline once projects move into operation and maintenance. The wider economic opportunity, therefore, extends beyond the construction sites.

A new railway can create demand for transport, engineering, maintenance, logistics, food supplies and accommodation. A modern port can expand opportunities for clearing and forwarding companies, truck operators, warehouses, manufacturers and exporters.

Similarly, a power project can support industrial production while creating demand for equipment suppliers, engineering firms and technical services.

The PPP opportunity

Government budgets alone cannot finance all the infrastructure and productive investments required to achieve Dira 2050, making PPPs increasingly important.

Under this model, the government and private investors combine financial resources, technical expertise and risk sharing arrangements to deliver infrastructure and services.

According to the PPP Centre, the value of projects being developed through PPP arrangements has expanded from about 2.5tri/- to approximately 8.5tri/- in recent years. The PPP portfolio covers transport, commercial property, logistics, road safety and other sectors.

The Tanzania Buildings Agency (TBA), for example, has identified 38 investment opportunities in commercial and residential property through PPP arrangements, creating potential opportunities in construction, property management and related services.

The PPP Centre has also been involved in the Dar es Salaam Rapid Transit (DART) system, which supports employment in driving, vehicle maintenance, security, ticketing and other transport-related services.

Investment in and improvement of Dar es Salaam Port, including private-sector participation in operations, provides another example.

A more efficient port can create wider opportunities in logistics, clearing and forwarding, trucking, warehousing and trade.

Projections that port investment could generate tens of thousands of jobs across the wider logistics chain indicate the potential scale of indirect employment.

However, such estimates should be distinguished from verified direct employment at the port itself.

The Kibaha-Mlandizi-Chalinze Expressway, a 78.9-kilometre toll road estimated to cost about US$328 million, provides another example of PPP investment. It can generate employment during construction and potentially create longer-term positions in toll collection, road safety, monitoring and maintenance.

A 110 million US dollars road-safety and vehicle-inspection project involving modern technology is another example of investment with potential to create technical, administrative and data-management jobs while strengthening road safety systems.

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From jobs to economic growth

The central economic question is whether these projects will generate value beyond the people directly employed in their implementation.

A railway can move goods faster and more efficiently. A modern port can reduce cargo handling delays. Reliable electricity can enable factories to operate more efficiently, while improved roads can connect farmers to markets.

The National Bureau of Statistics’ Tanzania Formal Sector Employment and Earnings Survey 2024/25, published in July 2026, recorded 4.57 million formal-sector employees. Of these, approximately 3.22 million were employed in the private sector, compared with about 1.35 million in the public sector.

These figures highlight the importance of private-sector activity in formal employment and the potential for investment to expand opportunities beyond government employment.

A new factory, logistics centre, railway, port facility or commercial development can generate demand for small suppliers, transport operators, food businesses, accommodation providers, construction-material manufacturers and professional service providers.

The challenge is ensuring that these economic linkages are strong enough for investment to stimulate wider domestic economic activity rather than remaining isolated projects.

Local companies are part of the equation

EACOP illustrates how major investments can connect employment creation with domestic enterprise development.

According to the Ministry of Energy, the project generated about 10,000 jobs during construction and involved Tanzanian companies in supplying goods and services.

When local companies secure contracts, they employ workers, purchase inputs, pay taxes and develop their technical and commercial capabilities.

These businesses can subsequently compete for other contracts, creating a multiplier effect across the economy.

Infrastructure supply chains can involve manufacturers of cement and steel, transporters, engineers, contractors, consultants, financial institutions and technology providers.

Agriculture can similarly create opportunities for seed producers, irrigation companies, processors, storage facilities, transporters and exporters. Energy investments can support equipment suppliers, engineering companies, electrical contractors, renewable-energy developers and manufacturers of energy-related components.

The stronger these domestic linkages become, the greater the possibility that investment will sustain economic activity long after construction ends.

Skills remain a critical test

Another factor determining how much Tanzanians benefit from the investment cycle is the availability of relevant skills.

Modern infrastructure projects require engineers, technicians, surveyors, ICT specialists, project managers, machine operators and safety specialists.

Where the local labour market cannot provide sufficient numbers of people with the required skills and experience, investors may have to recruit specialists from outside the country.

According to the Prime Minister’s Office, more than 29,902 graduates had received internship opportunities, while 19,075 workers had undergone skills-upgrading training in hotels, mining, transport, agriculture and agro-processing.

The Government has also prepared a National Practical Training Guide for graduates to strengthen the link between education and labour-market requirements.

However, the long-term priority should be to ensure that education and vocational training programmes respond directly to the skills demanded by strategic investments and emerging industries.

This would enable more Tanzanians, particularly young people, to compete for skilled and better-paying positions rather than remaining concentrated in temporary or lowskilled jobs.

Youth, women and decent work

Dira 2050 also presents an opportunity to expand the participation of young people and women in productive employment.

The International Labour Organisation’s Decent Work Country Programme for Tanzania 2025/26–2029/30, launched in February 2026, places emphasis on youth employability, skills development, formalisation, inclusive growth, social protection and labour standards.

The programme also focuses on productivity and sustainable incomes in small and medium-sized enterprises, small-scale agriculture and the blue economy.

These priorities are important because the success of economic transformation should not be measured only by the number of jobs created, but also by their quality, stability, accessibility and ability to provide decent incomes.

For women and young people, greater participation in procurement, business ownership, technical training and industrial supply chains could help broaden the distribution of economic opportunities.

Communities beyond the project

The economic impact of government and PPP projects can also extend to communities surrounding investment areas. A new road can reduce transport costs and connect farmers to markets. A railway can improve the movement of people and goods.

A port can increase trade efficiency, while electricity infrastructure can enable businesses to operate longer and invest in modern machinery. Industrial developments can generate demand for local services while creating markets for domestic suppliers.

Large projects can also expose local workers and businesses to new technologies, safety standards and modern production methods. However, these benefits do not occur automatically.

They depend on whether local businesses can participate in procurement and supply chains, communities have the necessary skills, infrastructure connects with productive areas and local institutions can effectively manage the growth generated by investment.

Without such linkages, major projects risk operating as isolated economic activities, with limited benefits reaching surrounding communities.

Growth must be more than numbers

The broader economic environment provides a strong case for continued productive investment.

The World Bank’s Tanzania Economic Update of February 2026 reported that the economy grew by about 5.8 per cent in the first half of 2025, supported by mining, construction, financial services and strong export performance.

But Dira 2050 requires more than maintaining economic growth. Its long-term objective is to raise productivity, increase value addition, expand industrial capacity, strengthen human capital and create sustainable employment. This means Tanzania needs investment that does more than build physical infrastructure.

Farmers need infrastructure and investment that enable them to process their produce and access better-paying markets. Manufacturers need reliable energy, efficient transport and digital systems.

Exporters need competitive logistics and access to markets. Businesses need technology, finance and skilled workers to expand production and compete. In this context, PPPs can help connect public infrastructure investment with private sector production, creating opportunities for economic activities across different sectors.

PPPs and value for money

The expansion of PPPs also requires strong oversight and accountability. A PPP is not automatically successful simply because it attracts private capital. Projects must deliver value for money, remain affordable, allocate risks appropriately and provide measurable social and economic benefits.

The PPP legal framework recognises value for money, affordability, risk transfer and socio-economic benefits, including employment creation and taxation. Strong project preparation, transparent procurement, realistic financial models, effective regulation and continuous monitoring are therefore essential.

For investors, predictable policies and efficient institutions can reduce uncertainty and encourage long-term commitments.

For the Government, effective oversight helps protect the public interest. For citizens, the ultimate measure is whether investments improve services, create opportunities and contribute to better living standards.

The real test for Dira 2050

The figures demonstrate the immediate employment potential of strategic projects. More than 35,000 jobs from SGR, more than 10,000 from EACOP and more than 10,000 from the Julius Nyerere Hydropower Project illustrate how major investments can generate substantial employment.

The bigger opportunity is to ensure that these projects leave behind stronger companies, better-skilled workers, more competitive industries and more productive communities.

Dira 2050’s ambition of building a 1 trillion US-dollar economy by 2050 cannot be achieved through government expenditure alone.

It requires sustained investment from domestic businesses, foreign investors, financial institutions and strategic partners, alongside a private sector capable of investing, innovating, employing and competing.

The NPC’s strategy to deepen private-sector participation across the planning cycle is therefore significant.

By involving businesses from project identification through implementation, monitoring and evaluation, the Government aims to make private-sector participation more systematic rather than treating it merely as a source of financing.

Ultimately, success will not be measured by the number of agreements signed or the amount of capital committed.

It will be measured by whether projects create productive jobs, expand local supply chains, transfer skills and technology, increase productivity, strengthen domestic businesses, improve public services and raise living standards.

For Dira 2050, government projects and PPPs are not ends in themselves. They are instruments for building a more productive and inclusive economy.

If carefully planned, efficiently implemented and rigorously monitored, they can help Tanzania move from an economy driven by individual projects to one in which investment continuously generates new industries, businesses, skills and employment opportunities.

That is the broader test of Tanzania’s journey to 2050: not simply how much the country invests, but how effectively that investment is converted into lasting economic value, inclusive growth and decent work for its people.