What You Need to Know
Tanzania’s approach to Public-Private Partnerships (PPPs) emphasizes the importance of citizen feedback in shaping investment decisions. This engagement aims to ensure transparency and public trust while addressing potential risks. The government seeks to balance private capital involvement with public interests, aiming for a significant economic transformation in the coming years.
Africa-Press – Tanzania. CITIZEN feedback on government-backed projects does not automatically halt them; instead, it prompts careful evaluation, fact-checking and, where needed, course corrections. This engagement ensures that investment decisions are transparent, well-informed and aligned with public interests.
Input from communities, experts and other stakeholders allows authorities to identify potential risks, uncover overlooked issues and make necessary adjustments before agreements are finalised, strengthening both the projects and public trust. Public-Private Partnership Centre (PPPC) Executive Director David Kafulila says citizen voices are increasingly shaping Tanzania’s growing portfolio of Public-Private Partnerships (PPPs).
A widely watched current affairs programme recently featured Kafulila framing public participation not as a threat to investment, but as a critical layer of due diligence in government contracting.
“Citizen feedback is healthy,” he said, adding that governments act on behalf of their people and must listen, especially to critics. In Tanzania’s PPP framework, public opinion is formally embedded in the process of identifying, negotiating and finalising major contracts.
This participation serves two purposes: It helps the government better understand its potential partners, a key part of “due diligence” and provides additional insight into proposed agreements, including risks or concerns that may not have surfaced internally. Yet public opposition does not automatically halt a deal. Instead, it triggers verification.
Authorities must interrogate both the investor and the claims circulating in public discourse. Some concerns may prove valid, leading to adjustments in contract terms. Others may be “hearsay” or emotionally driven narratives that require clarification rather than policy reversal.
“The role of government is to establish the truth,” Kafulila noted, adding that transparency in addressing public concerns ultimately strengthens decision-making and legitimacy.
Public anxiety tends to intensify when PPPs touch strategic infrastructure such as ports and airports, sectors linked to sovereignty and national security. Kafulila dismissed claims that Tanzania has privatised any airport, noting no such deal exists.
“PPPs do not dilute state authority over security,” he said.
Even when private investors operate infrastructure, national security agencies, including immigration, police and intelligence retain full jurisdiction.
“The government cannot compromise on security. If an investor resists, the agreement ends,” he emphasised.
Beyond individual contracts, Tanzania’s PPP strategy is tied to a broader economic vision: Achieving a 1 trillion US dollar economy within 25 years under the national development blueprint. Kafulila acknowledged the scale of the ambition, noting that no African country has yet reached half that size.
“This is not just a government agenda, it is a national decision,” he said, drawing on ideas from Adam Smith about longterm planning and economic transformation.
Central to that vision is a significant shift toward private sector participation. The Minister in the President’s Office responsible for Planning and Investment, Prof Kitila Mkumbo said about 70 per cent of the total investment required to achieve development targets will come from private capital.
Prof Mkumbo says PPPs are therefore both a financing tool and a mechanism for improving efficiency, enabling better management and reducing losses in sectors where capital alone is not sufficient.
The approach also allows the government to focus public funds on areas where private incentives are weaker, such as health and education. Beyond efficiency, he says PPPs will create jobs and stimulate local economies. They expect that contracts will prioritise local labour, skills transfer and community benefits, ensuring that the economic gains of private investment are widely shared.
There is also an expectation that PPPs will support innovation and modernisation, bringing global best practices to Tanzania while maintaining national control over critical infrastructure. Although Tanzania enacted its PPP law in 2010, implementation remained largely dormant for over a decade.
Momentum only accelerated in 2023, marking a turning point in project structuring and financing. Since then, PPP agreements worth more than 8.5tri/- have been signed, spanning transport, logistics, urban redevelopment and cross-border projects such as a 1.4 billion US dollars regional rail infrastructure deal. A recurring misconception, Kafulila said, is that PPPs amount to privatisation.
“Ownership remains with the state before, during and after the partnership,” he explained.
“PPP is about risk-sharing, where both parties contribute and benefit under agreed terms.” The distinction is crucial in managing public perception, particularly in a country where past privatisation experiences have shaped skepticism. Citizens, Kafulila noted, expect PPPs to deliver tangible results: Better roads, improved transport systems and efficient utilities that make daily life easier.
They want transparency and reassurance that public resources are used responsibly, with no hidden deals or shortcuts. Many anticipate that private sector involvement will speed up delivery while keeping costs reasonable, particularly for large-scale projects that the government cannot fund alone.
Finally, citizens anticipate accountability. They want mechanisms in place to monitor projects, track performance and intervene if standards are not met. Public dialogues, open reporting and visible oversight are seen as essential to ensuring that PPPs serve the public interest, not just investors’ profits.
“The public is not opposed to private capital,” Kafulila said. “They want to see that it works for them.”
Despite occasional resistance, Kafulila expressed cautious optimism. Public scrutiny, when properly managed, strengthens contracts, improves outcomes and builds trust. As Tanzania prepares its next budget cycle aligned with long-term development goals, PPPs are expected to play an even larger role. “The future is promising,” he said.
Tanzania’s Public-Private Partnership (PPP) framework was established to attract private investment while ensuring public interests are safeguarded. The PPP law enacted in 2010 laid the groundwork for collaboration between the government and private sector, but its implementation saw slow progress until recent years. In 2023, a renewed focus on PPPs has led to significant agreements aimed at enhancing infrastructure and economic growth, reflecting a shift towards greater private sector participation in national development.
