How Tanzania’s policy and legal frameworks support PPP's?

Public-Private Partnership (PPP) is a collaborative arrangement between the government and private sector to finance, build, and operate projects that serve the public, such as roads, hospitals, energy systems, or schools. Instead of relying solely on public funds, PPPs allow governments to tap into private capital, technology, and expertise, while retaining public oversight and accountability. In Tanzania, PPPs are guided by the Public Private Partnership Act and aim to close infrastructure gaps, improve service delivery, and stimulate economic growth through shared responsibility and mutual benefit.

This is how Tanzania’s policy and legal frameworks support PPPs;

1. A Clear legal foundation builds investor confidence

Tanzania’s Public Private Partnership Act (2010, revised 2018) provides a predictable and enforceable framework for structuring PPP deals. Legal clarity ensures that both public and private partners operate under the same rules. This lowers the risk of political interference or abrupt policy reversals, a key factor for attracting long-term capital into sectors like transport, energy, and water.

2. Defined institutional roles ensure accountability

Key institutions like the PPP Centre under the Ministry of Finance, and Tanzania Investment Centre (TIC) coordinate planning, vetting, and approval of PPPs, creating a system of checks and balances. It clearly defined roles reduce confusion, duplication, and corruption. When responsibilities are split between technical oversight (PPP Centre) and investment facilitation (TIC), projects move faster and more transparently, giving both investors and the public peace of mind.

3. Project vetting aligns with national development goals

PPP projects must undergo feasibility studies and be aligned with Tanzania’s Five-Year Development Plans (FYDP) and Tanzania National Vision 2050. This ensures PPPs are not random private ventures but strategic national tools. Whether it’s building special economic zones or Agro-processing hubs, vetted PPPs address real gaps in Tanzania’s growth model, not just investor profits.

4. Fiscal safeguards protect public resources

The law requires PPP projects to undergo cost-benefit analysis, value-for-money assessments, and off-balance-sheet evaluations before approval. These safeguards prevent reckless public spending or hidden debt accumulation. By protecting taxpayer funds, PPPs stay sustainable and politically defensible, which helps the government maintain macroeconomic stability.

5. Dispute resolution mechanisms build trust

Tanzania’s PPP framework includes arbitration and international dispute resolution clauses, especially important for foreign investors. Knowing that any conflict can be resolved fairly, even outside Tanzanian courts, gives investors peace of mind. This trust leads to greater participation by reputable companies in transport, housing, energy, and ICT sectors.

6. Incentives for local participation and employment

The PPP Act encourages the inclusion of Tanzanian firms and professionals in projects, as well as job creation and local content. When structured well, PPPs don’t just bring capital, they build Tanzanian capacity. From local subcontractors in construction to vocational training in industrial parks, PPPs can be tailored to deepen domestic economic roots.

7. Digital reforms improve transparency

Recent efforts by TIC and BRELA (Business Registrations and Licensing Agency) to digitize investment registration and licensing enhance transparency. Digital platforms reduce room for rent-seeking and backdoor deals. This attracts credible investors while giving Tanzanians tools to monitor who’s doing what in PPPs, a win for public accountability.

Tanzania has made impressive strides in creating legal and institutional frameworks to support Public-Private Partnerships (PPPs), with the PPP Act of 2010 and its 2018 amendments laying the groundwork. But a strong policy on paper doesn't always translate to success on the ground. For PPPs to deliver on their promise of building infrastructure, we must confront and fix the cracks in the system that can lead to failure.