On 9th March 2026, Tanzania’s Public-Private Partnership Center (PPPC) hosted a conference at the University of Dar es Salaam to discuss the role of PPPs in implementing the country’s Fourth Five-Year Development Plan (FYDF IV).
The event, themed “The Role of Public-Private Partnerships in Implementing the Fourth Five-Year Development Plan: Challenges and Opportunities,” brought together government officials, academics, private sector representatives, and policy experts to examine opportunities and challenges in strengthening PPP investments in Tanzania.
The participants pointed to a pipeline of 401 projects across 184 local government authorities identified for implementation through the PPP framework, alongside smaller investment opportunities of TZS 20 million or less that benefit from simplified approval processes.
Several challenges affecting PPP implementation were aired, which include policies and regulatory frameworks, project preparation, and risk-sharing arrangements in PPP projects.
Other challenges include institutional coordination and stakeholder engagement, financing mechanisms, institutional capacity, and Tanzania’s investment environment.
Participants outlined several proposed actions, including strengthening coordination across government policies and regulatory frameworks to ensure improved policy alignment across ministries and agencies, which would help accelerate project approvals and improve efficiency in PPP implementation.
Participants also emphasized the importance of strengthening project preparation and developing a robust pipeline of bankable PPP projects including improving technical capacity within institutions to transform investment ideas into well-prepared projects that meet international standards and are attractive to investors.
Another proposal focused on enhancing frameworks for risk-sharing between the public and private sectors to ensure that PPP projects are structured in a balanced and sustainable manner.
Access to financing for PPP projects was also identified as a priority area, with participants proposing the exploration of innovative financing models, including blended finance mechanisms, as well as new instruments such as infrastructure and municipal bonds aimed at mobilizing additional capital for major infrastructure and development projects.
In addition, stakeholders proposed measures aimed at strengthening institutional capacity and improving the investment environment, including building a stronger pool of PPP specialists and enhancing the predictability and transparency of the tax framework to further attract private investment.
Speaking at the conference, the Executive Director of Tanzania’s PPP Center, David Kafulila noted: “PPP arrangements allow the government to mobilize private capital to finance major infrastructure projects while enabling the state to focus resources on social services such as education and healthcare.”
He explained that PPP projects help improve efficiency, introduce advanced technology, and accelerate the delivery of strategic development projects.
He also added that Tanzania has signed PPP projects worth TZS 8.5 trillion since 2023, with each being in different phases of execution.
On his part, Tanzania’s Minister of Planning and Investment, Prof. Kitila Mkumbo emphasized the importance of increasing private sector participation in economic development.
Mkumbo said Tanzania must continue strengthening partnerships with investors to accelerate growth and expand infrastructure and industrial development.
Mkumbo emphasized: “If Tanzania is to achieve its long-term development ambitions, strengthening collaboration between the government and the private sector is essential in mobilizing investment and accelerating economic transformation.”
On her part, the Director of Research Policy and Advocacy at Tanzania’s Private Sector Foundation (TPSF), Mwanahamis Hussein proposed several measures to strengthen private sector participation in PPP projects, including improving investment policies to create a better business environment and promoting local content and participation for Tanzanian companies.
She emphasized that strengthening capacity building for PPP professionals, addressing bureaucratic delays and payment challenges, and establishing a one-stop center will simplify procedures for investors.
Tanzania’s Public-Private Partnerships
Public-Private Partnerships (PPPs) are long-term contractual agreements between government institutions and private companies aimed at financing, developing, and operating infrastructure or delivering public services.
Tanzania introduced its Public-Private Partnership policy in 2009, followed by legislation in 2010, establishing a framework for collaboration between the public and private sectors.
The policy and legislation aimed at spurring increased private sector financing, management, and maintenance of public goods and services, especially in large infrastructural and industrial investments.
However, implementation suffered from institutional bottlenecks, limited private sector depth, poor coordination, and suboptimal results, as noted in the 2023 Implementation Strategy review by the Ministry of Finance.
In efforts to strengthen PPPs in Tanzania, new PPP Regulations were issued in 2020.
They addressed policy gaps by detailing step-by-step approval procedures, compliance mechanisms, local content requirements, and operational guidelines for solicited/unsolicited bids, enhancing the enforceability of the 2010 Act.
They improved compliance, project pipelines, and institutional roles, but still faced delays in procurement and bankability.
Furthermore, the PPP Act of 2023 and Regulations targeted low effectiveness by streamlining approvals, allowing Special Purpose Vehicles (SPVs), ministerial bidding exemptions for strategic projects, international arbitration, tax incentives, and up to 25% public shares in SPVs, to boost investor confidence, reduce procedural delays, and align with FYDP III and FYDP IV.
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