Economy

Why Public-Private Partnerships key to attaining Tanzania’s Vision 2050

Mr Kafulila notes that to reach such far-reaching targets, Tanzania must explore innovative avenues of resource mobilisation, hence the imperative of embracing PPPs.

Mwanza. Tanzania’s ambitious Vision 2050 also known as Dira 2050, which seeks to transform the country into a $1 trillion economy, hinges critically on robust collaboration between the public and private sectors, the executive director of the Public-Private Partnership Centre (PPPC), Mr David Zacharia Kafulila, has said.

Speaking during an academic symposium on Public-Private Partnerships (PPPs) and their role in realising Vision 2050, held at St Augustine University of Tanzania (SAUT) in Mwanza over the weekend, Mr Kafulila said that policy and legal reforms already undertaken have paved the way for enhanced cooperation between the public and private spheres.

“This is a bold aspiration, but one that is achievable if every sector aligns its priorities with the overarching goals of the Vision,” he said, adding that strategic investment in key areas such as agriculture, health, education and water will play a pivotal role in reducing poverty and spurring economic growth.

Mr Kafulila noted that to reach such far-reaching targets, Tanzania must explore innovative avenues of resource mobilisation, hence the imperative of embracing PPPs.

He cited three major advantages of engaging the private sector in development projects—access to capital, modern technology, and operational efficiency.

“To date, only 19 countries globally have attained a $1 trillion economy. In Africa, only South Africa has reached that level. For Tanzania to join that league, our economy must grow at an average rate of 10 percent annually, which calls for mindset shifts, policy reforms and legal transformations,” he said.

The PPPC head also highlighted demographic challenges, warning that the country’s rapid population growth could undermine development efforts if not properly addressed.

He stated that while the global average population growth rate stands at 1 percent, and Africa’s at 2 percent, Tanzania’s rate exceeds 3 percent.

“This trend places immense pressure on the government to provide essential public services, particularly in a developing economy like ours,” Mr Kafulila explained, urging citizens to embrace responsible family planning to lessen the dependency burden on the state.

He emphasised that public-private cooperation is not a novel concept, noting that many developed countries have implemented numerous projects through such partnerships.

Tanzania, he said, has followed suit by amending several legal frameworks to enable and reinforce PPPs.

“Public institutions that have entered into PPPs have recorded significant economic benefits. These arrangements facilitate access to capital and enable government to execute projects beyond the confines of its annual budget,” he observed.

Nonetheless, Mr Kafulila admitted that some strategically vital sectors remain unattractive to private investors due to their limited commercial profitability.

However, he stressed that such projects, while not commercially lucrative, have high economic returns and should be pursued jointly by the state and private entities to realise the objectives of Vision 2050.

Meanwhile, former Attorney General, Ambassador Prof Adelardus Kilangi, cautioned about challenges in the implementation of PPP projects.

He noted a lack of coordinated vision among public institutions and called for comprehensive research to identify bottlenecks hindering effective execution of PPPs.

“We need to undertake in-depth analysis of investment laws and contractual frameworks, particularly in light of international legal obligations. Many challenges arise not from the weaknesses of our domestic laws, but from the international legal regimes that we are required to comply with,” Prof Kilangi explained.

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