Why PPPs are crucial in Tanzania's water provision ambitions

Addressing the event, former Controller and Auditor General (CAG) and executive director of the Wajibu Institute of Public Accountability, Mr Ludovick Utouh, described the country’s water situation as a “crisis” rooted in a lingering socialist mindset that continues to view private investment with suspicion.

Presenting a paper titled Tanzania PPP Crisis, Mr Utouh argued that although the country has enacted laws, including the PPP Act, Chapter 103, implementation remains weak because of poor enforcement and institutional resistance.

“There is still a mindset where people think the private sector is undesirable and unwanted.

With that situation, it becomes difficult to see how PPPs will contribute 70 percent to the successful implementation of Vision 2050,” he said.

Mr Utouh said Tanzania faces a significant execution gap, noting that some local government authorities avoid PPP arrangements and instead label them “joint ventures” to bypass oversight from the PPPC.

“Some officials avoid the PPP framework because oversight limits opportunities for corruption and informal commissions,” he said.

He also pointed to structural weaknesses within the sector, revealing that Tanzania has only 14 certified PPP professionals against a target of 40.

To address the challenges, Mr Utouh called for a “100 percent turn” in national culture to embrace private investment and transparent procurement systems.

He urged the government to publish the long-awaited PPP procurement guide and a consolidated implementation manual adapted from regional models such as Kenya and Senegal.

Mr Utouh further recommended automatic access to international arbitration mechanisms and the closure of loopholes that allow local authorities to evade oversight.

PPPC executive director, Mr David Kafulila, echoed the need for reforms, describing water as a cross-cutting issue linked to poverty reduction and public health.

Citing World Health Organisation (WHO) estimates, Mr Kafulila said every dollar invested in water infrastructure saves four dollars in healthcare costs associated with waterborne diseases.

He added that Tanzania loses about 42 percent of its water through leakages, illegal connections and governance inefficiencies, costing the country an estimated Sh248 billion annually.

“But do you think someone would illegally connect water if private investors had put their money there? It would be impossible. That is why we want such interventions,” he said.

Mr Kafulila said the PPPC is working to become a One Stop Centre to speed up investment procedures before legal vetting and reduce bureaucratic delays.

He said recent legal amendments allowing international arbitration through the International Centre for Settlement of Investment Disputes (ICSID) were a positive step, adding that the arrangement would be expanded to other bodies.

A lecturer from the University of Dodoma (UDOM), Dr Abiud Bongole, said Tanzania possesses about 106 billion cubic metres of water resources but currently utilises only 54 percent because of inadequate storage and harvesting infrastructure.

“This is where PPPs can help us develop infrastructure that increases efficiency in water use, reduces losses, improves monitoring and lowers non-revenue water,” he said.

Dr Bongole said irrigation remained another major challenge, noting that although 29.4 million hectares are suitable for irrigation, only 2.5 percent had been utilised by 2022.

He said achieving the country’s 2028 irrigation targets would require the development of at least 157,453 hectares annually, a task unlikely to be achieved through public financing alone.

Representing the private sector, Tanzania United Contractors and Allied Services Association (TUCASA) secretary general, Mr Baraka Materu, said the Fourth Five-Year Development Plan seeks to mobilise Sh16 trillion from private investors.

“Sh16 trillion represents more than 68 percent of the projected investment requirement. The government must therefore strengthen investor confidence while ensuring greater participation of local investors,” he said.

The chairman of the Parliamentary Committee for Water and Environment, Mr Jackson Kiswaga, also backed greater private sector participation, saying the government’s more than 1,000 ongoing projects worth Sh4 trillion were struggling to match population growth and climate change pressures.

“In the past, rivers in many villages flowed throughout the year, but today many have dried up because of climate change and environmental degradation,” he said.

Mr Kiswaga cited the success of Tanga’s Sh54 billion green bond as evidence that Tanzanians are willing to invest in infrastructure projects capable of generating returns.

Deputy Minister for Water, Mr Kundo Mathew, said the government had prepared a private sector investment strategy for the 2026/27 financial year to support implementation of the national water grid project.

He said rural water access had reached 85.2 percent, but warned that achieving universal access by 2030 would require financing beyond the central government budget.

“If we depend solely on government funding, the national water grid will remain a dream,” he said.

Mr Mathew invited domestic and foreign investors to participate in developing mini-grids that will form part of the national water network.

Participants at the forum agreed that although Tanzania has established an adequate legal framework for PPPs, unlocking the country’s water potential will depend on transparent implementation, institutional reforms and a national shift in attitudes towards private sector participation.