Africa-Press – Tanzania. Public-Private Partnerships (PPPs) and the private sector are set to become engines of transformation as Tanzania embarks on its most ambitious development agenda yet—growing the economy to $1 trillion by 2050.
Currently valued at around $80 billion, the economy will need to sustain high growth over the next 25 years to reach this milestone, analysts have told The Citizen on Saturday, July 19, 2025.
Public-Private Partnership Centre (PPPC) Executive Director, Mr David Kafulila, said achieving this goal will require a twelvefold expansion of the current economic size over the next quarter-century.
He emphasised that traditional financing mechanisms, reliance on taxation or public borrowing, will be inadequate to drive the scale of growth envisioned.
Yet Mr Kafulila offers a historical example that underscores what’s possible with the right strategy: “Vietnam grew its Gross Domestic Product (GDP) thirteenfold, from $34.6 billion in 1998 to about $465.8 billion in 2024. This shows that, with proper execution, such transformation is within reach.”
He stressed that this transformation demands fundamental shifts across the board. “Major change is needed not only in government but across the entire nation, government is just one partner in delivering this vision.”
To guide this transition, he said a long-term implementation plan for Vision 2050 is being developed, noting that it will be structured around five-year medium-term development strategies, with detailed budget projections to be finalised ahead of the 2026/27 rollout.
At the heart of Vision 2050’s financing model is the concept of alternative financing, with PPPs expected to play a central and transformative role.
“The success of these partnerships depends on three interconnected pillars: a well-prepared government, an actively engaged private sector, and most importantly, widespread public trust and buy-in,” stressed Mr Kafulila.
He outlined three core ways in which PPPs will support the national development drive, saying firstly, they will mobilise substantial private capital for infrastructure and other high-impact projects that the government alone may struggle to fund.
Second, they will ease the public sector’s financial burden by shifting long-term maintenance responsibilities to private partners, particularly in major infrastructure, thus freeing up government resources.
Third, PPPs will enable the state to redirect time and funds toward its most critical function: human capital development.
“Investing in human capital, producing skilled and self-reliant citizens, is fundamental to building a self-sustaining economy,” he said.
Tanzania’s long-term growth, Mr Kafulila added, will hinge on four strategic advantages: its geographic positioning, vast human capital, abundant natural resources, and strong regional and international diplomatic networks.
He also urged the domestic private sector to evolve from being mere contractors to becoming full equity partners in national development.
This call for deeper engagement is shared by a senior economics lecturer at the Open University of Tanzania, Dr Lawi Yohana.
He warned that private sector participation will remain limited unless Tanzania offers a stable, predictable, and investor-friendly environment.
“The government must maintain consistent policies and ensure political stability. Investors need long-term clarity and certainty,” he said.
Dr Yohana added that Tanzania must introduce well-targeted incentives, especially tax relief and improved access to finance, to attract both local and international investors.
He drew lessons from East Asia, particularly South Korea, where strong government-private sector alignment led to agro-industrial transformation.
He believes Tanzania must emulate this by strengthening agricultural value chains.
“If agriculture is a priority, we must have industries that can process, package, and export these products. It’s not just about producing more, it’s about connecting the dots,” he explained.
Dr Yohana further stressed that science, technology, and research should be at the centre of private sector growth strategies.
“The future depends on innovation ecosystems. PPPs should support not only physical infrastructure but also research and development,” he said.
He also underscored the importance of nurturing local entrepreneurs. “While foreign investment is vital, we must intentionally empower domestic businesses to ensure inclusive and sustainable growth.”
Agricultural trade economist, Dr Mwinuka Lutengano, from the University of Dodoma also believes the private sector is indispensable to realising Vision 2050, arguing for greater innovation in public financing.
“To reduce our reliance on taxes and donor support, we need innovative financial instruments. Special development bonds, for instance, can help raise private capital for large-scale public initiatives,” he said.
Dr Lutengano highlighted agriculture as a key sector where PPPs can yield immediate and wide-reaching benefits.
As the country’s largest employer, agriculture has significant potential for boosting productivity, creating jobs, and diversifying exports, if adequately capitalised and modernised.
“Unlocking this potential requires more than just policy, it requires financing and innovation,” he said.
With the right blend of visionary leadership, policy consistency, and inclusive partnerships, Tanzania’s $1 trillion economy is more than just an aspiration, it is a long-term possibility.
But realising it will demand bold thinking, particularly in redefining the state’s relationship with the private sector.
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