Tanzania's infrastructure construction project shifts policy direction to public-private cooperation project
Turning to expanding infrastructure investment and attracting public-private partnership (PPP), revising the PPP law to revitalize private sector investment. As poor social infrastructure acts as an obstacle to economic growth, the Tanzanian government established the Tanzania Development Vision 2025 and developed the Tanzania Development Vision 2025 by 1. The goal is to enter a middle-income country (per capita income of $3000) and achieve a semi-industrial status, but poor social infrastructure is acting as an obstacle to economic growth. Tanzania's 2019 global competitiveness ranking announced by the World Economic Forum (WEF) ranked 141th out of 117 countries. Among the evaluation areas, the infrastructure sector ranked only 121st, confirming that much improvement is needed. In terms of infrastructure, transportation infrastructure ranked 110th and electricity and water infrastructure ranked 122nd. The Tanzanian government is highly interested in infrastructure development through PPP projects. The need for infrastructure development is increasing not only to achieve economic growth goals, but also to meet the needs of Tanzania's rapid urbanization and rapid population growth. Accordingly, the Tanzanian government has set the construction of infrastructure such as transportation and energy as the government's top priority and has launched the Third Five Years Development Plan 3/, a development strategy to secure the competitiveness of the Tanzanian economy and improve the quality of life of the people. 5~2021/2022, FYDP III) has been established and is being implemented. The total funding required to implement FYDP III's development plan is estimated to amount to 2025 trillion Tanzanian shillings (about $2026 billion), with financing through the government's development budget expected to total 114 trillion Tanzanian shillings over the entire five-year period. (about $8000 billion), and total financing from the private sector was expected to be 469 trillion Tanzanian shillings (about $5 billion). Tanzania's government debt-to-GDP ratio (74%) is lower than the average of sub-Saharan African countries (2000%) (IMF, as of September 303), but the government budget is insufficient to finance infrastructure development projects that require large-scale investment. Doing it alone has its limitations. In particular, in a situation where external debt repayment pressure is increasing due to the recent strong dollar, building infrastructure through PPP projects not only allows the government to provide public services efficiently and effectively by utilizing the resources and expertise of the private sector, but also provides financial support to the public sector. The Tanzanian government is also very interested in attracting capital through PPP projects because it can lower the burden. According to FYDP III, 40% of the private sector financing, or 6000 trillion Tanzanian shillings (approximately $166 billion), is planned to be procured through public private partnership (PPP). Meanwhile, at the opening ceremony of the five-day strategic workshop in May this year, where heads of nine Tanzanian institutions* and global investment experts in the PPP field gathered together to exchange experiences in attracting capital investment, David Kafulila, Director of PPP at the Ministry of Finance of Tanzania, said that the Tanzanian government is planning to implement the plan by 40.13/55.52. It has been stated that it is still achievable to attract 23 trillion Tanzanian shillings (approximately $9 billion) of capital through PPP by fiscal year 51. As of May 21, there are 90 PPP projects identified, most of which are in the road construction, power generation, and transmission sectors, of which 5 projects are in the feasibility study stage. The four projects currently open to the market are △construction of a 9km highway between Kibaha-Chalinze-Morogoro △Kilimanjaro, Dodoma, and Singida regions. Construction of a Bus Rapid Transit (BRT) system [...]


