Tanzania Invites Private Investors to Finance Health Sector Projects Through PPPs

Tanzania has invited private investors to finance and implement health sector projects through public-private partnerships (PPPs).

The call was made by Deputy Minister for Finance Laurent Luswetula during the High-Level Dialogue of African Finance Ministers on strengthening joint investment in the health sector, held in Nairobi.

Luswetula represented Minister for Finance Ambassador Khamis Mussa Omar at the meeting, which brought together finance ministers from African countries that have signed memoranda of understanding with the United States Government on health sector financing.

The Government is prepared to enter into long-term agreements with private companies for the implementation of health and other development projects.

The proposed financing approach combines private investment with domestic revenue, pooled financing and other funding sources to increase the resources available for healthcare services and infrastructure.

The Government also uses excise duties on certain products to protect public health and generate revenue for health services and infrastructure.

Government borrowing will be directed towards strategic projects that can deliver long-term economic and social benefits and contribute to debt repayment.

“Tanzania is ready to cooperate with the private sector through long-term agreements in the implementation of various projects. We invite companies and investors to work with the Government in productive investments,” Luswetula said.

“Tanzania has many investment opportunities in the health sector, together with stable and predictable policies accompanied by a favourable and secure investment environment. What is required is compliance with the laws of the country so that investments benefit both investors and Tanzanians,” he added.

“We do not want to borrow simply because we want to obtain funds. We borrow where an investment has long-term benefits and where we are certain about how the debt will be repaid,” Luswetula said.

Tanzania’s PPP framework is governed by the Public-Private Partnership Act, Cap. 103, together with its regulations and public investment management requirements.

The Government’s planning and budget guidelines for 2026/27–2028/29 direct public institutions to establish and strengthen their PPP units, complete the preparation of existing projects and use PPP arrangements to attract private finance, technology and expertise.

The guidelines also direct public institutions to involve private companies in service delivery and the establishment of local manufacturing facilities, including production connected to the Medical Stores Department, to reduce dependence on imported goods.

In the health sector, Tanzania is implementing the Universal Health Insurance programme to expand access to healthcare services and broaden the financing base for service providers.

The Government’s current health financing approach is intended to reduce dependence on donor funding by combining domestic resources, pooled financing and private-sector investment.