Why Tanzania’s PPP frameworks may fail and how to prevent it.

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 roads, hospitals, energy plants, and more, we must confront and fix the cracks in the system that can lead to failure.

Here are 7 reasons why Tanzania’s PPPs can fall short, despite having the right laws, and what we must do about it:

1. Weak Implementation Capacity

Having a law is one thing; having the right people to carry it out is another. Many government agencies still lack trained personnel to design, negotiate, and supervise complex PPP contracts. Without this capacity, PPPs risk becoming overpriced, delayed, or outright failures.  

The government should invest in capacity building within ministries, local governments, and the PPP Centre to ensure deals are professionally managed from start to finish.

2. Bureaucratic Delays and Corruption

Slow approvals, unclear procedures, and hidden interests frustrate investors. Some deals are delayed for years or awarded to unqualified partners due to favouritism or bribes, eroding both value and public trust.

The government should Streamline PPP processes, digitize applications, and enforce anti-corruption audits at every stage.

3. Unpredictable Policy Shifts

Frequent changes in leadership, regulations, or tax policies make long-term investments risky. For PPPs that stretch 15–30 years, investors need assurance that the rules won’t change halfway.

It is important to maintain policy consistency and offer legal guarantees (e.g., stabilization clauses) to protect committed investors from abrupt disruptions.

4. Lack of Public Awareness and Support

When the public doesn’t understand PPPs, projects often face suspicion, especially in sectors like water supply or health where affordability and access are sensitive issues. Without community support, PPPs may face delays or political backlash.

The Government and media must proactively educate citizens on how PPPs work and why they benefit them, creating ownership and transparency.

5. Unbalanced Risk Sharing

If a PPP contract places all the financial or performance risk on one side, either the government or the investor, the project becomes unstable. For example, if demand for a toll road is overestimated, the private partner may walk away if losses pile up.

The government should use professional risk assessment tools to ensure fair and balanced sharing of demand, currency, and construction risks.

6. Non-Transparent Procurement

Poorly advertised or rigged bidding processes result in substandard partners or inflated project costs. When only insiders win, the economy and citizens lose.

It is important to enforce competitive tendering with strict publication rules and allow independent monitors to observe high-value PPP deals.

7. Poor Financial Planning

If the government signs too many PPPs without aligning them with its budget, debt levels can rise dangerously. Without proper long-term planning, even well-structured PPPs can create fiscal pressure.

It is important to strengthen coordination between the Ministry of Finance, PPP Centre, and Parliament to ensure all PPP commitments are sustainable and budgeted.

Tanzania’s PPP journey holds great promise. But laws alone won’t build hospitals or ports. We must turn paper into performance by enforcing accountability, boosting public capacity, and ensuring transparency at every stage. A strong legal framework is just the starting point real impact comes when public and private players walk the talk together.