By The Respondents Reporter
In Dar es Salaam, a growing policy debate over the future of the bus rapid
transit (BRT) system is exposing deeper questions about the balance between
state control and private sector participation in Tanzania’s urban transport
sector.
The discussion has gained momentum following concerns that the government is
considering procuring buses through UDART, even as a private investor
contracted to deliver 250 buses has deployed only a portion of the fleet,
leaving more than 100 buses reportedly parked and unused.
For analysts, the issue reflects more than an operational mismatch. It
points to structural challenges in how public-private partnerships (PPPs) are
being implemented in practice.
The debate featured prominently during the second PPP dialogue held on March 30, 2026, part of an ongoing series organised by the Public-Private Partnership Centre.
The platform brings together scholars, policymakers, experts and the
public to examine PPP-related challenges and opportunities. The first dialogue
was held on March 9, 2026, with a third session expected later this month.
A key theme emerging from the discussions is whether Tanzania is fully
leveraging PPP frameworks to address infrastructure and service delivery
challenges, particularly in sectors such as urban transport.
The Public-Private Partnership Centre (PPPC), Executive Director Mr David
Kafulila argued that the current situation in the BRT system suggests a
deviation from core PPP principles.
He maintains that if the investment process had strictly followed
established PPP procedures from project structuring to contract execution, the
project would likely be performing more efficiently.
His argument is rooted in the idea that PPPs are not simply about involving
private investors, but about applying a disciplined framework that ensures
projects are bankable, risks are properly allocated, and operations are driven
by performance incentives.
Kafulila also questioned whether the policy environment is consistently supportive of private sector participation.
He raised concerns about whether
the country would allow private operators to function under predictable and
commercially viable conditions, noting that uncertainty in implementation can
undermine investor confidence.
More broadly, he challenged the argument that government ownership of BRT
buses can be justified on national security grounds.
From an economic perspective, analysts say, sectors classified as
security-sensitive are usually clearly defined, and urban passenger transport
does not typically fall within that category.
Instead, the efficiency of systems such as BRT is often linked to
competition, operational autonomy, and strong regulatory oversight rather than
direct state control.
Issa Omar of the University of Dar es Salaam viewed the situation as reflecting a broader hesitation to fully embrace PPP solutions.
He suggested
that mixed signals allowing private investment while expanding state
involvement in the same space could weaken confidence among investors.
Such inconsistencies, he noted, risk discouraging long-term capital
commitments and could dampen enterprise development in sectors where private
participation is critical.
Omar also pointed to the potential implications for local content
development. A well-functioning PPP framework, he argued, could create
opportunities for domestic firms across the value chain, from operations and
maintenance to supply and services linked to the transport system.
PPP expert David Rwehikiza emphasised that the long-term sustainability of
projects like the BRT system depends on treating private sector participation
as a central component rather than a supplementary option.
He highlighted that modern PPP systems are built around strong institutional mechanisms that ensure projects are properly prepared, transparently procured, and effectively managed over their lifecycle.
These systems typically include
rigorous feasibility assessments, value-for-money analysis, and clear risk
allocation frameworks.
They also rely on standardised contracts and competitive procurement
processes to reduce uncertainty and ensure fairness. In addition, effective PPP
frameworks incorporate fiscal risk management to safeguard public finances
while maintaining project affordability.
Another critical aspect is contract management and performance monitoring.
Ensuring that operators meet agreed service standards is essential to
delivering reliable and efficient public transport services, particularly in
rapidly growing urban centres.
The Dar es Salaam case illustrates how gaps in any of these areas can lead to underutilised assets, delays, and inefficiencies.
Analysts argue that the
presence of idle buses alongside plans for new public procurement signals the
need to reassess how existing agreements are being implemented.
Rather than expanding direct government ownership, they suggest that
priority should be given to resolving bottlenecks within the current PPP
framework.
This includes improving coordination among stakeholders, ensuring compliance
with contractual obligations, and strengthening institutional capacity to
manage complex partnerships.
As the PPP dialogue series continues, the BRT debate is likely to remain a
central issue. It reflects broader questions about how Tanzania can design
infrastructure projects that are both efficient and sustainable, while
maintaining investor confidence.
For Dar es Salaam, where demand for reliable urban transport continues to
grow, the outcome of this debate will shape not only mobility in the city, but
also the direction of public policy on private sector participation in key
economic sectors.
