Tanzania bets on PPPs to drive infrastructure investment

By The Respondents Reporter

Tanzania is stepping up the use of Public-Private Partnerships (PPPs) to finance and deliver major infrastructure projects as the government seeks to reduce pressure on public spending while accelerating economic development.

Officials say reforms to the country's PPP framework have attracted greater private sector participation, with nine partnership agreements signed across key sectors by June 2026.

Speaking at the Ministry of Finance pavilion during the 50th Dar es Salaam International Trade Fair (Sabasaba), Acting Commissioner of the Public-Private Partnership Unit (PPPU), Bashiru Taratibu, said the government will continue partnering with private investors to implement strategic projects, particularly in transport infrastructure, to improve service delivery.

"The government has strengthened the PPP policy, legal and regulatory framework to create a more attractive investment environment and increase private sector participation in national development projects," Mr Taratibu said.

The agreements signed so far include four contracts under the first and second phases of the Dar Rapid Transit (DART) system, the Mandatory Motor Vehicle Inspection project, and the construction and operation of the Kariakoo Commercial Building (DDC).

Other flagship projects being implemented under the PPP model include the rehabilitation and operation of the Tanzania-Zambia Railway (TAZARA) and the modernisation of the Port of Dar es Salaam through partnerships involving DP World and Adani.

Mr Taratibu said the government views PPPs as a critical financing mechanism under the National Development Vision 2050, enabling the mobilisation of private capital for public infrastructure while reducing reliance on the state budget.

He said the approach also allows the government to tap into private sector expertise, technology and management skills, while creating jobs, boosting public revenues and improving the quality and efficiency of public services.

"PPP arrangements also provide a more balanced allocation of project risks, with a significant share transferred to private investors," he said.

He noted that, in addition to the nine signed agreements, several other projects are at various stages of preparation, signalling the government's continued commitment to using private investment to bridge infrastructure financing gaps and expand access to essential public services.

The annual Dar es Salaam International Trade Fair, running from June 28 to July 13 at the Mwalimu Julius Nyerere Grounds, is celebrating its 50th anniversary this year and has brought together government institutions, investors and businesses to showcase investment opportunities and economic reforms.

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