Experts push for policy shift to attract PPPs for NDV 2050

Dar es Salaam. Experts have called for strategic policy and legal reforms alongside strengthened research as key pillars to attract public-private partnership (PPP) projects essential for realising Tanzania’s National Development Vision (NDV) 2050.

The appeal was made during a symposium jointly organised by the Public-Private Partnership Centre (PPPC) and Research and Education for Democracy in Tanzania (REDET), held on Saturday, May 26, 2025, at St Augustine University of Tanzania (SAUT) in Mwanza.

Speaking at the event, PPPC Executive Director Mr David Kafulila said Tanzania already has a robust policy and legal framework supporting fair competition, and any reluctance to invest should be attributed to other factors.

Mr Kafulila highlighted key reforms under the Sixth Phase Government, including amendments to the PPP Act in 2023 designed to improve the investment climate.

He cited the introduction of Viability Gap Funding (VGF), a mechanism allowing the government to co-finance projects that are not commercially viable on their own.

“If the private sector hesitates due to weak commercial prospects, the government can now inject capital to enhance the project’s bankability,” he explained.

He added that the revised law permits government guarantees, which have bolstered investor confidence.

On dispute resolution, Mr Kafulila noted the law now allows parties to seek international arbitration, marking a shift from the previous domestic-only mechanisms.

“Some critics argue this exposes the country to losses, but justice is served regardless of the outcome,” he said, noting Tanzania’s membership of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) since 1992.

He also drew attention to new provisions allowing special investment arrangements for complex projects.

“For example, a nuclear energy project may require direct negotiations with an investor. Such deals bypass Parliament but must be approved by Cabinet,” he said, adding conventional PPPs remain under PPPC board oversight.

However, former Attorney General and Ambassador Prof Adelardus Kilangi said much more has to be done, identifying fragmented understanding among government institutions as a major obstacle to effective PPP implementation.

“Although these are all state entities, their differing perspectives lead to disjointed decision-making and delays,” he said.

Prof Kilangi outlined three priority areas: conducting research to uncover root challenges, analysing how political economy dynamics influence PPPs, and reviewing all laws hindering implementation, including the Contracts Act and Comparative Contract Law.

He warned that international legal frameworks often complicate investment cases, with Tanzania losing disputes due to legal complexities rather than incompetence.

Citing the Investment Act, he emphasised the need to harmonise sectoral laws with PPP objectives.

“PPP legislation must be viewed holistically. One law may promote investment, while another, such as overlapping bilateral treaties, may undermine it,” he cautioned.

SAUT lecturer in Tourism Management, Dr Delphine Kessy, urged the creation of an independent national body to monitor PPPs, document outcomes, and suggest improvements.

She recommended the body publish a comprehensive report every five years to enhance the PPPC’s adaptability.

“Alongside infrastructure and education investments, a supportive business environment and clear market strategies are essential. Capital alone cannot ensure successful investment without these enabling conditions,” she warned.

SAUT head of accounting and finance, Dr Ntui Ponsian, described the domestic private sector as the true engine of national development.

He criticised current policies for failing to adequately protect and empower indigenous businesses before involving them in government partnerships.

“I have reviewed the 2013 draft private sector policy. It does not prioritise local businesses sufficiently. With the right incentives, the domestic private sector can be a catalyst for economic growth,” he said.

To achieve the government’s ambitious target of a $1 trillion economy by 2050, he argued that Tanzania must build a robust, inclusive economy capable of self-financing development, while investing heavily in human capital and ensuring policy predictability.

“A strong economy requires consistent, predictable legal and policy frameworks. Investors, local or foreign, must be confident that rules will not change overnight,” said Dr Ntui.

He added, “We do not want a situation where someone invests today and wakes to find their business shut down by a sudden government directive. Consistency and clarity are vital to attracting long-term investment.”

Tanzania Investment and Special Economic Zones Authority (TISEZA) investment officer for the Lake Zone, Mr Erastus Marai, said citizens want to know the number of jobs created by PPP projects.

“They ask how much social services have been improved, what contributions to efficiency have been effected, and the challenges faced,” he said.

Meanwhile, Form Six student, Ms Khadija Khamis, urged the government to improve the teaching of economics and business studies at the secondary school level countrywide.

“Our education system should be practical, not just exam-focused. We also need more well-trained teachers to help students understand the key concepts and prepare for real-world challenges,” she said.