Government asserts control over assets in PPP projects

What you need to know:
- Mr Kafulila said that while private investors contribute capital and operate certain services, the government retains ownership throughout the project lifecycle.
Mwanza. The executive director of the Public-Private Partnership Centre (PPPC), Mr David Kafulila, has refuted claims that Tanzania is being “sold off” through development partnerships with foreign investors, stressing that ownership of public assets remains with the government.
Speaking at the National Forum on Public-Private Partnerships (PPPs) here on Wednesday, Mr Kafulila said that while private investors contribute capital and operate certain services, the government retains ownership throughout the project lifecycle.
“A partnership is like a marriage. The government brings in the private sector to invest, operate and transfer. It is not a sale,” he said.
“Whether it’s a toll road from Kibaha to Morogoro, a port, or a bus terminal—ownership never changes hands.”
He clarified that partnerships differ from privatisation, which involves permanent transfer of ownership.
In PPPs, private firms operate services under time-bound contracts, enabling the government to channel its limited resources into sectors like education, health, and nutrition.
Citing global data from November 2024, Mr Kafulila said the world’s total debt stood at over 90 percent of GDP. In Africa, the figure is 67 percent, while Tanzania’s is 47 percent.
“This shows that the Sixth Phase government is managing debt prudently,” he said.
Deputy Minister in the President’s Office (Planning and Investment), Mr Stanslaus Nyongo, who officiated the forum, said the government is committed to fostering a more competitive environment for private sector growth.
“By 2050, with a projected population of 140 million, we aim for a per capita income of $4,700 to $8,000,” he said.
The director of the Lake Zone Chapter of the Tanzania Women Chamber of Commerce (TWCC), Ms Happiness Mabula, urged tax reforms to encourage women’s participation in business.
CEO of JAET Company, Dr Elibariki Mmari, called for policies to improve local entrepreneurs’ access to capital to strengthen domestic partnerships.