Tanzania's efforts to build a stronger and more accessible healthcare system will require deeper collaboration between the government and private investors, stakeholders have said, arguing that public resources alone are unlikely to meet the country's growing healthcare needs.
The call emerged during a dialogue on Public-Private Partnerships (PPPs) in the health sector, where government officials, healthcare professionals and pharmaceutical manufacturers highlighted the role of private investment in expanding healthcare infrastructure, improving service delivery and accelerating access to modern medical technologies.
Speaking at the forum today, Executive Director of the Public-Private Partnership (PPP) Centre, David Kafulila, said rising demand for healthcare services, driven by population growth and changing disease patterns, was placing increasing pressure on public finances.
He said partnerships between the public and private sectors offer an opportunity to mobilize additional resources while improving efficiency and innovation in healthcare delivery.
"Healthcare needs are expanding rapidly, and government budgets alone cannot meet all investment requirements," Mr Kafulila said. "We are talking about attracting private sector capital into projects that serve the public interest, allowing the country to expand healthcare services faster and more sustainably."
According to him, private healthcare providers already play a significant role in Tanzania's health system through hospitals, clinics and diagnostic centres that complement government services.
"Imagine where we would be without private sector participation in healthcare. The government recognizes the immense contribution private investors have made in building facilities, procuring medical equipment and providing services that citizens rely on every day," he said.
Beyond financing, Mr Kafulila argued that PPPs bring managerial expertise, operational efficiency and technological innovation that can help improve healthcare outcomes.
"In healthcare, inefficiency has real consequences because it affects people's lives. Through partnerships, we can leverage private sector experience, skills and management systems to improve service quality and ensure resources are used effectively," he said.
He noted that advances in medical technologies, diagnostics and digital health systems are transforming healthcare globally, making collaboration with private investors increasingly important.
Mr Kafulila also urged ministries, local government authorities and public institutions to publicly identify and communicate investment opportunities available within their jurisdictions.
"Investors need access to information. Public institutions should clearly indicate areas where partnerships are needed so that investors can prepare proposals and participate in addressing existing challenges," he said.
However, stakeholders noted that several barriers continue to limit the full potential of public-private collaboration in the health sector.
Tanzania Medical Association (MAT) President, Dr Nkoronko Mugisha, said mistrust between government institutions and private investors remains one of the biggest obstacles.
"There is still hesitation on both sides. Government sometimes views private sector actors with suspicion, while investors are uncertain about working with public institutions. We need to address these concerns and build trust if we are serious about transforming healthcare," Dr Kamugisha said.
He added that cumbersome legal and administrative procedures often slow down the implementation of partnership projects and discourage investment.
"Our legal and regulatory frameworks should continue evolving to support innovation and partnership while safeguarding public interests," he said.
Dr Mugisha linked healthcare reforms to Tanzania's broader economic ambitions, including the country's aspiration of becoming a trillion-dollar economy by 2050.
"A healthy population is a prerequisite for economic growth. We cannot build a strong and competitive economy without investing in the health of our people," he said.
He also called for the accelerated implementation of Universal Health Insurance, arguing that many households continue to face financial hardship when seeking medical treatment.
"No one should become poor because they need healthcare. Health is a basic right, and healthcare reforms must ensure that quality services are accessible and affordable to all citizens," he said.
Dr Mugisha identified several areas where PPPs could make a significant impact, including healthcare infrastructure, specialized medical services, diagnostic technologies, health innovation, workforce development and institutional governance.
He said Tanzania currently produces about 20 percent of the medicines consumed locally but has set a target of raising that figure to 80 percent by 2050.
"We need government to be an enabler rather than a competitor. The private sector drives investment, innovation and job creation, while government should focus on creating a conducive environment through sound policies and infrastructure," Dr Haroon said.
He proposed long-term procurement arrangements for locally manufactured medicines through public health facilities and the planned Universal Health Insurance system.
"Investors need certainty. Long-term purchasing agreements would provide confidence for manufacturers to expand production and invest in new facilities," he said.
Dr Haroon also urged authorities to reduce bureaucratic bottlenecks and review regulatory requirements that increase production costs and reduce competitiveness.
Drawing lessons from countries such as India, he said meaningful progress in healthcare and pharmaceutical manufacturing is possible when governments and private investors operate as partners pursuing shared national objectives.
"If government and the private sector work together effectively, Tanzania can improve healthcare services, strengthen local pharmaceutical production and achieve its long-term development goals," he said.
Participants at the dialogue agreed that stronger public-private partnerships could play a pivotal role in modernizing Tanzania's healthcare system by unlocking investment in hospitals, medical technologies, pharmaceutical manufacturing and specialized services, while helping the country meet the healthcare demands of a growing population.
