Kafulila: PPPs key to Tanzania’s economy as US freezes foreign aid

Kafulila: PPPs key to Tanzania’s economy as US freezes foreign aid

Dar es Salaam. The Public-Private Partnership Centre (PPPC) has called for Tanzania to expand public-private partnerships (PPPs) and enhance domestic tax revenues in response to a potential freeze in US foreign aid.

Following his inauguration on January 20, 2025, US President Donald Trump’s administration announced a halt to foreign aid, primarily administered through the US Agency for International Development (USAID).

The freeze is part of a broader effort to restructure US foreign policy and “use taxpayer dollars wisely to advance American interests.”

This decision has far-reaching implications across Africa, including Tanzania, particularly in vital sectors like health and education.

Vaccination campaigns for polio eradication and HIV/AIDS treatment through the President’s Emergency Plan for AIDS Relief (PEPFAR) have been suspended, jeopardising millions of lives.

In a recent live televised event, the PPPC executive director, Mr David Kafulila, suggested that the negative effects of the US aid freeze could be mitigated through strengthened PPPs and improved domestic revenue collection.

Mr Kafulila emphasised that the US, which controls a quarter of the world’s economy, holds significant sway over global financial institutions such as the World Bank (WB) and the International Monetary Fund (IMF).

Thus, shifts in US economic policy can have profound global repercussions.

He noted that Tanzania’s dependency on foreign aid, particularly US grants, had been decreasing since the early 2000s, and the country must now further reduce this reliance.

Mr Kafulila advocated for expanding PPPs as a means to bridge the funding gap.

“Encouraging more PPPs will attract private capital, reduce reliance on foreign aid, and free up public funds for essential sectors like healthcare, education, and water supply,” he said.

He also highlighted that leveraging PPPs would enable more efficient use of domestic tax revenues.

For instance, private investments in critical infrastructure could reduce the need for US aid previously allocated to healthcare, and education among others.

Increased private sector involvement through the execution of projects could similarly mitigate the potential reduction in World Bank funding due to changes in US policy.

“Once US companies implement investment in partnership with Tanzanian firms, the country’s tax capacity will be enhanced, increasing funding for critical sectors, including health and education,” he said.

“This is especially important when US policy changes could impact how the World Bank responds to funding requests,” he added.

He underscored the importance of Tanzania pursuing economic self-reliance by diversifying income sources and investment opportunities.

This approach, he said, aligns with Tanzania’s National Development Vision 2050, which envisions the private sector as the main driver of the economy.

To achieve this, he pointed to ambitious infrastructure and industrial projects, particularly in the energy sector.

“Tanzania must increase electricity generation to meet the demands of a growing population, from the current 5,000 megawatts to support a projected $700 billion economy by 2050,” Mr Kafulila said.

He emphasised that the targeted economic growth is about one and a half times South Africa’s current economy.

While acknowledging that large-scale projects require substantial investment, Mr Kafulila stated that tax revenues and loans alone would not suffice.

He referenced examples from countries like France, the US, and the UK, where the private sector has led major infrastructure initiatives, with the public sector providing regulatory oversight.

“In the next 25 years, we aim for an 8 percent annual growth rate. The private sector must play a pivotal role in helping us achieve this,” he added.

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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit
Tanzania Foreign Investment News
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Tanzania Confirms Second Marburg Outbreak After WHO Chief Visit

Dar es Salaam — Tanzania’s President Samia Suluhu Hassan has declared an outbreak of Marburg virus, confirming a single case in the northwestern region of Kagera after a meeting with WHO director-general Tedros Adhanom Ghebreyesus.

The confirmation follows days of speculation about a possible outbreak in the region, after the WHO reported a number of deaths suspected to be linked to the highly infectious disease.

While Tanzania’s Ministry of Health declared last week that all suspected cases had tested negative for Marburg, the WHO called for additional testing at international reference laboratories.

“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”Amelia Clemence, public health researcher

Subsequent laboratory tests conducted at Kagera’s Kabaile Mobile Laboratory and confirmed in Dar es Salaam identified one positive case, while 25 other suspected cases tested negative, the president told a press conference in Dodoma, in the east of the country today (Monday).

“The epicentre has now shifted to Biharamulo district of Kagera,” she told the press conference, distinguishing this outbreak from the previous one centred in Bukoba district.

Tedros said the WHO would release US$3 million from its emergencies contingency fund to support efforts to contain the outbreak.

Health authorities stepped up surveillance and deployed emergency response teams after the WHO raised the alarm about nine suspected cases in the region, including eight deaths.

The suspected cases displayed symptoms consistent with Marburg infection, including headache, high fever, diarrhoea, and haemorrhagic complications, according to the WHO’s alert to member countries on 14 January. The organisation noted a case fatality rate of 89 per cent among the suspected cases.

“We appreciate the swift attention accorded by the WHO,” Hassan said.

She said her administration immediately investigated the WHO’s alert.

“The government took several measures, including the investigation of suspected individuals and the deployment of emergency response teams,” she added.

Cross-border transmission

The emergence of this case in a region that experienced Tanzania’s first-ever Marburg outbreak in March 2023 has raised concerns about cross-border transmission, particularly following Rwanda’s recent outbreak that infected 66 people and killed 15 before being declared over in December 2024.

The situation is particularly critical given Kagera’s position as a transport hub connecting four East African nations.

Amelia Clemence, a public health researcher working in the region, says constant vigilance is required.

“We never know when an outbreak might occur in a neighbouring nation. So we ensure infection prevention control assessments at every point of care as routine as a morning greeting at our workplaces.”

The Kagera region’s ecosystem, home to fruit bats that serve as natural reservoirs for the Marburg virus, adds another layer of complexity to disease surveillance efforts.

The virus, closely related to Ebola, spreads through contact with bodily fluids and can cause severe haemorrhagic fever.

Transparency urged

Elizabeth Sanga, shadow minister of health for Tanzania’s ACT Wazalendo opposition party, says greater transparency would help guide public health measures.

“This could have helped to guide those who are traveling to the affected region to be more vigilant and prevent the risk of further spread,” she said.

WHO regional director for Africa Matshidiso Moeti says early notification of investigation outcomes is important.

“We stand ready to support the government in its efforts to investigate and ensure that measures are in place for an effective and rapid response,” she said, noting that existing national capacities built from previous health emergencies could be quickly mobilised.

The situation coincides with leadership changes in Tanzania’s Ministry of Health, with both the chief medical officer and permanent secretary being replaced.

This piece was produced by SciDev.Net’s Sub-Saharan Africa English desk.

Source: allafrica.com

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