Tanzania’s public private partnerships will shape its future

IN an era defined by global competition and rapid economic transformation, countries around the world are increasingly turning to innovative strategies to accelerate their development agendas.

One such strategy gaining significant momentum is the Public-Private Partnership (PPP) model, a collaborative approach that has proven to be a game-changer in mobilising resources and enhancing service delivery. For Tanzania, the PPP framework is emerging not just as a convenient financing mechanism, but as a vital engine for national progress.

It is viewed as a strategic tool for bridging infrastructure gaps, modernising essential services and ultimately achieving the ambitious targets set out in the National Vision 2050.

At its core, a Public-Private Partnership is a cooperative arrangement between government institutions and private sector players, aimed at designing, financing, implementing and operating projects that serve the broader public interest.

From roads and railways to energy plants, hospitals and schools, these partnerships are reshaping the development landscape in meaningful and measurable ways. The significance of PPPs in Tanzania’s development journey lies in their ability to combine the strengths of both sectors.

The public sector brings policy direction, regulatory frameworks and a developmental mandate, while the private sector injects capital, technology, efficiency and innovation. Together, they create a synergy that not only enhances project outcomes but also accelerates the pace of national transformation.

With the National Vision 2050 targeting a highincome, industrialised and inclusive economy, the role of PPPs becomes even more critical. The Vision outlines the need for massive investments in infrastructure, education, healthcare and digital technology, all areas where PPPs can play a catalytic role. Already, efforts are underway to strengthen the PPP ecosystem in the country.

The establishment of the Public-Private Partnership Centre (PPPC) is a significant step in this direction, providing technical expertise, regulatory oversight and policy coordination to ensure successful implementation of PPP projects.

As Tanzania positions itself for long-term growth, the PPP model offers not just a pathway to shared responsibility and reduced fiscal pressure, but a platform for sustainable, inclusive and resilient development. In the push toward Vision 2050, leveraging the full potential of public-private collaboration could be the cornerstone of a prosperous future.

ALSO READ: Youth agri-processors call for digital loan access

Speaking in a recent one-day academic forum on public-private partnerships (PPPs) which held in Mwanza city, the Executive Director of the Public-Private Partnership Centre (PPPC), Mr David Kafulila said Tanzania must invest in high-quality human capital to effectively drive the development of a strong economy and to empower the private sector as a key stakeholder in economic ownership.

Mr Kafulila underscored the vital role of the private sector in implementing the National Vision 2050, a long-term development strategy recently launched by President Dr Samia Suluhu Hassan.

“This vision belongs to the people, not the government. It is a national vision, President Samia becomes the second Head of State to guide the country in formulating and officially launching a 25- year vision, following in the footsteps of President Benjamin Mkapa,” he explained.

According to him, the 2050 vision aimed at building a one trillion-dollar economy by 2050 and he pointed out that currently, there are only 19 countries worldwide in what is known as the “trillion-dollar club.”

“These are the countries with the largest economies in the world,” he said.

He noted that for Tanzania to reach such economic stature, she must put in significant effort noting that as of now, no African country has achieved that level of economic strength. “The largest economy in Africa today is South Africa, with an economy worth nearly 400 billion dollars.

So, building a one trillion-dollar economy means creating an economy two and a half times larger than South Africa’s current economy,” he explained.

He said anyone interested in understanding the scale of such an economy should make scanning for South Africa’s infrastructure like railways, roads and power supply as a reference point for what it means to build an economy twice that size.

“That is the task ahead of us as a country,” he noted.

He emphasised that that is why the private sector and other development stakeholders must recognise the ambitious goals Tanzania has set in its national vision.

“But having big goals doesn’t mean they’re impossible, it just means we need to do more than we’ve done before,” he added.

He stressed that Tanzanians and development stakeholders must adopt new ways of thinking and go beyond traditional approaches in pursuing development and economic growth.

He said Tanzania’s current economy is estimated at about 85 billion dollars and for it to reach a one trilliondollar economy in the next 25 years; it must grow its economy approximately 12 times more than that of the world’s giant economies.

He pointed out that that is not impossible, noting that some countries including South Korea, Vietnam and others have managed to grow their economies 11 to 12 times in the period of 25 years.

“Our goal in implementing the vision is ambitious, but it’s already been done elsewhere. We’re also aiming to achieve a per capita income of 7,000 dollars annually,” he explained.

ALSO READ: TADB to mark 10 years of agricultural financing success

He urged the government to embrace family planning services to support the country in effectively achieving the specific goals set out in the Tanzania Development Vision 2050, particularly those related to managing rapid population growth.

Mr Kafulila stressed the importance of reproductive health programmes that empower couples to plan their families based on the resources they have, ensuring the well-being of both parents and children. He noted that Tanzania’s population growth rate is over three per cent, compared to Africa’s average of two per cent and the global average of one per cent.

“Even major nations like China managed to build a high-quality human resource base by controlling population growth. Today, China is experiencing negative population growth and even India’s population growth is now below one per cent,” he pointed out.

He said at the current rate, Tanzania is projected to have a population of 140 million by 2050 noting that if the country had maintained the average African growth rate since the first development vision, it would have had 56 million people today instead of 68 million, and by 2050, the number would be around 91 million instead of 140 million.

The Chairman of the Research and Education for Democracy in Tanzania (REDET) Professor Rwekaza Mukandala said the launch of Vision 2050 requires Tanzanians to run instead of to walk, echoing the late Mwalimu Julius Nyerere’s call for Tanzanians to run in order to fully participate in building the economy.

He emphasised that the goals in Vision 2050 are significant and cannot be achieved through traditional or routine means.

“That is why the launch of Vision 2050 demands that we run while others (in the world) are walking. That’s also the reason we are here today to collectively think about how we can contribute to this vision,” Prof Mukandala explained.

Speaking at the forum, Former Attorney General and former Head of Mission of the Embassy of the United Republic of Tanzania in Brazil, Ambassador Prof Adelardus Kilangi said nowadays, discussing socialism may make one seem mad, as such ideologies are often considered outdated.

“But I believe we need to revive political economy and analysis, because political economy is about the relationship between politics, economics and the law,” he explained.

He pointed out that when PPPs are discussed, the legal aspects are often emphasised, while the political and economic dimensions and how they influence laws are overlooked.

“In my interpretation, when we speak of political economy, we’re talking about the production of wealth and the distribution of the income from that production,” he said.

Presenting a paper on the role of PPPs in promoting investment and efficiency in local government operations, Dr Jasinta Msamula from Mzumbe University said citizens are the backbone of local governments, which serve as a bridge between them and the central government.

She urged Tanzanians to abandon the habit of complaining without contributing to the country’s economy by producing, stressing that no country can develop without its people actively participating in production activities.

Dr Jasinta emphasised the importance of having a workforce that understands public-private partnership (PPP) matters and the need to reform the budgeting system in order to achieve set goals. She noted that numerous studies show that strengthening local governments economically is a fast-track approach to tackling poverty in the country.

Dr Ponsian Ntui from St Augustine University of Tanzania (SAUT) said that what needs to be done is to strengthen and grow a robust local private sector in order to achieve the goals of the National Development Vision 2050.

“We need to take bold steps, including building an economy that can support all sectors, having skilled professionals and creating a conducive business environment to attract more investors both domestically, internationally and within local government authorities,” said Dr Ntui.

Senior Lecturer in Tourism Management at St Augustine University of Tanzania (SAUT), Dr Delphine Kessy, said there is a need for an independent body to oversee public-private partnership (PPP) projects, assess progress, facilitate learning and help the nation avoid repeating past mistakes.

“Such a body would support the Public-Private Partnership Centre (PPPC) in carrying out its duties effectively,” she said.