Why government embraces PPP modality
THE government has expressed its commitment to intensifying its relationship with the private sector, in all short, medium and long-term measures aimed at boosting the country’s economy.
Tabling the National Budget in the National Assembly on Thursday, the Minister for Finance and Planning, Dr Mwigulu Nchemba, said that one of the measures to engage the private sector was to increase production in order to increase exports and reduce imports.
“In implementing this, the government will continue to collaborate with producers of agricultural products, livestock, fisheries, manufacturing and processing industries to ensure that we increase productivity,’’ said Dr Nchemba.
In a strategy to revive the Export and SMEs Credit Guarantee Schemes, the minister said a total of 600bn/- was expected to be used where the Bank of Tanzania (BoT) will provide 280bn/- and the World Bank (WB) will provide a concessional loan worth 150 million US dollars. This initiative will increase production and exports.
The minister further noted that in order to increase the private sector participation in the implementation of development projects, the National Assembly this week approved the amendments of the PPP Act, 2023 which will enhance implementation of various projects through PPP arrangement.
“I urge my fellow ministers and government officials to collaborate with the private sector in implementing development projects through PPP modality. This arrangement is used by many countries as an alternative way to finance development projects that should have been implemented by the government and stimulate development,’’ he noted.
Dr Nchemba said that improving infrastructure, investment and business environment to attract the private sector and increasing budget on productive sectors including agriculture, livestock, fisheries, natural resources and tourism in order to increase employment, stimulate production and increase exports.
