Nation tackle PPP to drive investment, economic growth

DAR ES SALAAM: TANZANIA’S ambition to become a 1 trillion US dollar economy within the next 25 years is no longer a distant dream, it is being actively pursued through strategic Public-Private Partnerships (PPPs) that blend investment, expertise and citizen engagement.

These partnerships are transforming the way the country approaches infrastructure, urban development and essential services, while ensuring that local voices are heard and public interest safeguarded.

The Public-Private Partnership Centre (PPPC), Executive Director, Mr David Kafulila, said that public scrutiny is not a roadblock but a critical component of due diligence in government contracting.

“Citizen feedback is healthy,” he said, noting that governments act on behalf of their people and must therefore listen, especially to critics. Within the PPP framework, public opinion is formally embedded in the identification, negotiation and finalisation of major contracts. This process ensures that investments are not only technically and financially viable but socially and politically accountable.

“The role of government is to establish the truth,” Mr Kafulila said adding “transparency strengthens decisionmaking and builds public trust”.

The distinction between PPPs and privatisation is key to public understanding. Under privatisation, state assets transfer ownership to private parties. PPPs, in contrast, retain state ownership while redistributing responsibilities and risks according to agreed terms.

The PPP boss drawing on economic theories from Adam Smith’s Wealth of Nations, stresses that prosperity depends on mindset, planning and coordinated action.

“This is not just a government agenda, it is a national decision,” he said.

The private sector is expected to contribute about 70 per cent of the investment needed to achieve the country’s development goals, as the government alone cannot finance large infrastructure projects.

With the population growing at around 3.0 per cent annually, demand for services continues to rise. Without private sector involvement, the financial burden would be unsustainable, making PPPs essential for balancing economic growth with social needs.

University of Dar es Salaam economist Dr Richard Mbunda said the private sector remains a key driver of economic development and will be instrumental in achieving the country’s long-term goals.

He argued that PPPs provide a practical pathway for bridging financing gaps while accelerating economic transformation across key sectors.

Director of Policy and Research at the Tanzania Private Sector Foundation (TPSF), Ms Mwanahamis Hussein, stressed the need to prioritise local participation in PPP arrangements. She said ensuring domestic investors as part of the shareholding structure is critical to building a resilient and inclusive economy.

“When we talk about partnerships, it is important to consider the principles of economic nationalism. PPP projects should ensure that the local private sector participates fully in the ownership and management of the respective projects,” she said.

Veteran PPP negotiator Colonel (rtd) Joseph Simbakalia underscored the need for reforms in procurement systems and stronger government negotiation capacity.

“Economic nationalism and patriotism must guide how we structure PPP agreements,” he stressed.

Former Controller and Auditor General, Ludovic Utouh, highlighted the importance of robust legal, regulatory and financial frameworks in managing PPP investments. He noted that transparent reporting and auditing systems are essential for accountability and called for closer collaboration between the PPP Centre and national oversight institutions to strengthen governance and public trust.

Since its establishment two years ago, the PPP Centre has mobilised investments worth about 8.5tri/-. Also, the number of internationally certified PPP went up from merely two to over 40. The centre has identified over 400 potential projects nationwide valued at 1.4 billion US dollars.

With FYDP IV requiring an estimated 477tri/- in financing, of which around 70 per cent is expected from private capital, PPPs alone could contribute approximately 170tri/- over five years, underscoring the need for coordinated stakeholder engagement.