Dira 2050: President Samia backs local private sector’s call to play large role in megaprojects

Dodoma. Tanzania is endowed with vast natural wealth, fertile land, expansive oceans, lakes, rivers, and a strategic geographic location.

Yet, in this country of 60 million people and a landmass of 947,403 square kilometres, approximately 26 million still live in poverty, surviving on less than $2.15 a day, according to World Bank statistics.

It is likely for this very reason that the government introduced Dira 2050, a long-term development blueprint that seeks to address the paradox of poverty amidst abundance.

Dira 2050 promises a transformation of the country’s economic, social, and institutional landscape.

Its architects envision a nation propelled to high-income status, underpinned by robust infrastructure, competitive industries, and a per capita income that positions Tanzania among the world’s emerging success stories.

Specifically, the vision seeks to raise the Gross National Income (GNI) per capita from the current average of $896.5 (Sh2.3 million) to around $7,000 (Sh18 million) by 2050.

It also targets increasing the national Gross Domestic Product (GDP) from $57.8 billion (Sh148.5 trillion) as of 2023 to $1 trillion (Sh2,571.4 trillion) by 2050.

(The GNI projection is based on a population of 64,416,042 in 2023, according to the National Bureau of Statistics, and the GDP of 2023 according to the 2025/26 State of the Economy speech.)

However, for these ambitions to be realised mobilising domestic capital, harnessing technological innovation, and nurturing small and medium-sized enterprises will be crucial.

And it is here where the private sector’s crucial role comes at play, especially through the widely promoted Public–Private Partnerships (PPPs).

Proposal to favour locals over foreigners

Cognisant of this fact the representatives of the private sector in the Dira 2050 unveiling ceremony called for special favours in as far as protecting local entrepreneurs and businesses is concerned.

Prominent businessman Rostam Aziz, who spoke on behalf of local businessmen at the ceremony said the local private sector is calling for a larger stake in government contracts, particularly in mega-infrastructure projects.

“For Dira 2050 to succeed, policies, legislation and regulations must be fine-tuned to nurture local businesses and give them more space to grow and thrive,” said Mr Aziz.

“Policies, legislation and procurement systems should unapologetically favour locals. It is a shame that the Tanzanian banking system does not support local entrepreneurs to grow. Let us protect Tanzanian businesses. No country is developed by foreigners.”

He further argued that with adequate support, local contractors could even begin undertaking mega-projects, ensuring that a significant portion of the investment remains within the country.

“If Sh30 trillion has been spent on mega-projects, and Tanzanian contractors had been fully engaged, the money would have gone to develop Kizimkazi, Igunga, Manonga and Masasi, instead of Chengdu, Wuhan and others,” Mr Aziz noted.

President Samia’s response

President Samia Suluhu Hassan, who officiated the launch, responded promptly to Mr Aziz’s remarks.

She said the government has for years worked to build the capacity of the local private sector so much so that it now feels it has grown enough to play a bigger role in the economy.

 “Those big things delivered by the foreign private sector [in the implementation of mega infrastructure projects] …domestically— we were not ready. If we are now ready, let us prepare so we can work together,” said President Samia.

She pointed out that the implementation of Dira 2050 requires the full and strategic participation of the private sector across all sectors of the economy in terms of investment, innovation, and job creation.

“The private sector is the pillar of economic growth. There is no doubt about it,” she added.