The Director of the Public-Private Partnership Center (PPPC), David Kafulila, has stated that one of the key considerations for entering into PPPs is attracting private sector capital to implement projects that were originally the government’s responsibility.
Speaking during the Public-Private Partnership Symposium organized by the PPPC in collaboration with the research institute REDET, held at the University of Dar es Salaam(UDSM) on May 27, 2025, Kafulila said that through PPPs, development projects can be implemented outside the government budget, either fully or partially without relying solely on public funds.
“In engaging in PPPs, we ease the burden on the government’s balance sheet. Instead of funding every project through taxes and loans, PPPs allow us to implement such projects outside the government budget,” said Kafulila.
In addition to easing the fiscal burden, Kafulila emphasized that PPPs can be a channel for attracting new technology and improving efficiency, particularly in public sector management.
“Research shows that the private sector tends to have more efficient management compared to the public sector, perhaps due to its very nature,” Kafulila noted, highlighting the fact that some public institutions are currently operating at significant losses.
The PPP Center began operations in January 2024, although Tanzania’s Public-Private Partnership Act (Cap. 103) was enacted back in 2010. The center’s main goal is to promote and coordinate PPP projects for the delivery of public infrastructure and related services.
Currently, major projects expected to be financed through this model include those related to renewable energy, the construction of the Dar es Salaam–Morogoro highway, as well as initiatives in high education, water utilities, and other sectors.
During the discussion, various scholars pointed out that for Tanzania to benefit from the PPP model, there must be transparency and a willingness to learn from the mistakes made during the privatization wave of the past three decades.
Professor Anna Tibaijuka, an economist and former Member of Parliament, as well as a member of the UDSM academic staff, stated that while attracting investment through PPPs is beneficial, it requires proper planning, especially regarding transparency and accountability.
READ MORE: David Kafulila Advocates for PPPs to Reduce Tanzania’s Reliance on Borrowing for Development
“You cannot succeed without transparency. You cannot succeed without the moral authority to take these contracts to Parliament, as required by law, so that the rules of the game are clear,” Prof. Tibaijuka said.
Her point was echoed by Prof. Abel Kinyondo, a member of the academic staff at the UDSM School of Economics, who stressed that transparency is essential and that effective PPP implementation requires good governance.
“A few Tanzanians cannot act patriotically on behalf of 60 million others. Therefore, unless we ensure transparency and the rule of law, we risk repeating past mistakes that led to scandals like the Dowans corruption case,” said Prof. Kinyondo.
He added that even the countries Tanzania often compares itself to were keen on learning from their mistakes when liberalizing their economies, which allowed them to make swift reforms.
Sabatho Nyamsenda, a researcher and lecturer from the Department of Political Science and Public Administration, advised that PPP projects should not lead to the commodification of essential social services that the state is responsible for funding.
He suggested the need for clear boundaries on which projects are appropriate for PPP arrangements.
Nyamsenda also emphasized the need for legal safeguards to protect the country from private companies that seek to use PPPs for profit maximization rather than genuine partnership.
“What lessons have we learned from the privatization wave led by the third-phase government?” he asked.
