Let Public-Private Partnerships work for delivering vision 2050

 By Dr. Bravious Kahyoza, Economic Analyst

On May 27, 2025, the University of Dar es Salaam hosted a vital forum on Public-Private Partnerships (PPPs), jointly organized by the PPP Centre (PPPC) and REDET.

The theme, “Dollars, Markets, and Capital Mobilization: The Role of PPPs in Achieving Tanzania's Vision 2050”, captured the urgency of Tanzania’s economic future.

I had the honor of attending this event and found the discussions rich with insights that underscore Tanzania’s clear commitment to PPPs as a pathway to growth. But the message was also cautionary: for PPPs to deliver on their promise, strong governance, capacity, and trust must be the foundation.

Why PPPs Matter for Tanzania Today

Mr. David Zacharia Kafulila, Executive Director, Tanzania Public-Private Partnership Centre (PPPC) nailed it all at that Public-Private Partnerships are long-term agreements where government agencies collaborate with private companies to deliver infrastructure and services such as roads, energy, health, and education.

The government remains responsible for service delivery, but the private sector provides financing, expertise, and efficiency.

Tanzania’s PPP journey began in the mid-1990s with the Independent Power Tanzania Ltd (IPTL) project, predating formal PPP laws.

Since then, the government has built a legal framework, the National PPP Policy (2009), PPP Act (2010), and amendments up to 2023, to support these partnerships. In 2024, the Public-Private partnership Centre (PPPC) was established.

But why focus on PPPs now?

Mr. Kafulila said PPPs is vital in achieving the vision 2050 since Tanzania still faces growing demand for infrastructure and services that outstrip public budgets of which a debt-to-GDP ratio of 47%, public funds alone cannot bridge this gap.

PPPs mobilize private capital to complement government resources.

Second, PPPs offer a vehicle for technology transfer and innovation. The private sector tends to be more dynamic and can introduce modern solutions to longstanding challenges.

Third, PPPs can improve management efficiency. Studies show that a country’s wealth depends more on efficient institutions and innovation than on natural resources alone.

Key Takeaways From the Forum

Experts at the forum highlighted critical challenges and opportunities.

Dr. Kafigi Jeje from the Arusha Institute of Accountancy exposed the financial strain on local governments. With only TZS 1.2 trillion collected locally against over TZS 8.9 trillion in obligations, councils rely heavily on central government transfers.

PPPs could offer a way for local governments to attract private investment for development projects, preserving public funds for essential services.

Professor Anna Tibaijuka, emphasized the need to build a culture of partnership and transparency.

She pointed out confusion between PPPs and Foreign Direct Investment (FDI), which are fundamentally different. Unlike FDI, PPPs require long-term collaboration, risk-sharing, and accountability.

She also reminded us that over 70% of national wealth globally resides with households, not governments. To unlock this wealth, Tanzania must foster trust and openness in its PPP frameworks.

Professor Abel Kinyondo of DUCE outlined the essential elements of PPPs: partnership, contracts, risk transfer, project financing, and user fees.

He acknowledged mixed outcomes in Tanzania’s PPP experience, but stressed that governance quality is the decisive factor. Success stories like NMB Bank’s privatization show PPPs’ potential, while failures warn us of the cost of poor oversight.

Media veteran General Ulimwengu called for greater public transparency. For PPPs to gain trust, citizens must understand their purpose and risks. Closed-door decisions only breed suspicion and resistance.

Dr. Jamal Msami urged capacity building within government agencies to develop strong PPP projects. Without skilled teams, even well-intentioned partnerships can fail.

Dr. Milanzi Mursali from the Planning Commission reminded attendees of Tanzania’s Vision 2050 ambitions: a $1 trillion economy with per capita income of $7,000. Achieving this will require much more private sector investment, but it’s not just about money; it’s about having clear priorities and well-structured projects.

Governance: The Cornerstone of Effective PPPs

Good governance is the bedrock on which successful PPPs rest. We must build strong institutions, ensure transparency, and hold both public and private sectors accountable.

One key reform introduced recently was limiting international arbitration in PPP contracts. This safeguards Tanzania from costly and exploitative legal disputes and balances the power between partners.

Since liberalizing its economy in 1992 and joining global investment frameworks like ICSID, Tanzania has positioned itself as an attractive investment destination. Rolling back these advances risks investor confidence. Instead, we should deepen transparency and reform.

Empowering Local Governments and Youth

Decentralization must be central to Tanzania’s PPP strategy. Many local governments lack the expertise to negotiate and manage PPPs. At PPPC, we are committed to building this capacity so that towns and regions beyond Dar es Salaam can drive their own development.

Youth engagement is equally vital. As Sabatho Nyamsenda of UDSM pointed out, the youth need education and involvement in PPPs—they are the architects of Tanzania’s future economy.

Richard Mbunda, a student, raised a critical question: how do we ensure that PPP benefits reach ordinary Tanzanians and not just foreign investors? Supporting local entrepreneurs and small businesses to participate in PPPs is key, as is integrating PPP knowledge into higher education.

A Call to Action

PPPs are not a cure-all. But with strong governance, clear priorities, and inclusive partnerships, they are among the most powerful tools Tanzania has to reach Vision 2050.

The choice is clear: it’s not whether Tanzania will embrace PPPs, but how.

We must learn from past successes and failures. We must build a culture of trust, openness, and shared vision. The road to a trillion-dollar economy begins now—with bold partnerships, sound policies, and citizen engagement.

The PPPC says it is ready. Are all Tanzanians ready to join the move?

 

Dr. Bravious Kahyoza is an economic analyst and participant in Tanzania’s PPP policy reforms. He writes on economic governance and development.