The Tanzanian government is reviewing its Public-Private Partnership (PPP) legislation to address project preparation and contractual delays. Finance Minister Ambassador Khamis Mussa Omar announced the review in Parliament in Dodoma on 3 November 2026. The review aims to address challenges in preparing and implementing projects, including delays in negotiating and finalising contractual agreements between public institutions and private investors.
The review of the Public-Private Partnership Act, Chapter 103, also aims to improve the preparation of PPP projects to ensure they meet the requirements for private-sector financing. This includes ensuring their commercial and financial viability. According to the Finance Minister, 10 PPP projects with a combined value of TZS 8.6 trillion (± USD 3.2 billion) are at different stages of implementation in the 2026/27 financial year.
The projects cover transport infrastructure, port operations, commercial property development, vehicle inspection services and industrial facilities. Among the projects identified are the first and second phases of the Dar es Salaam Bus Rapid Transit (BRT) system, the development of the DDC Kariakoo commercial building, and the establishment of mandatory motor vehicle inspection and roadworthiness testing centres.
Other projects include improvements to the management and operation of Dar es Salaam Port, the rehabilitation and operation of the Tanzania-Zambia Railway Authority (TAZARA) railway, and the development of a modern workshop and spare-parts manufacturing facility under the Tanzania Buildings Agency (TBA). These projects form part of the government's efforts to increase private-sector participation in investment and economic activities.
During the parliamentary debate, Minister Omar said the government would incorporate recommendations from the Parliamentary Standing Committee on Budget and Members of Parliament into its medium-term planning and budget guidelines. The recommendations cover seven areas, including government expenditure controls, revenue collection by public institutions, and financing and management of development projects.
The government also plans to strengthen the management of development projects and improve compliance with public financial management requirements. These measures form part of the review of the Medium-Term Planning and Budget Guidelines for 2026/27 to 2028/29, which establish the framework for government spending priorities, revenue mobilisation, and development financing.
Tanzania’s PPP framework provides for cooperation between public authorities and private investors in the financing, development, operation and maintenance of infrastructure and public-service projects. The country's medium-term planning framework for 2026/27 to 2028/29 identifies increased private-sector participation in investment and economic activities among the assumptions underpinning government development plans, aligned with the country’s Development Vision 2050.
Key points
- The review of the PPP law aims to address project preparation and contractual delays.
- 10 PPP projects worth TZS 8.6 trillion are at different stages of implementation.
- The government plans to strengthen development project management and public financial management compliance.
