MOROGORO: THE Executive Director of the Public-Private Partnership (PPP) Centre, David Kafulila, has said that many governments around the world are facing increasing public demands that cannot be addressed by relying solely on tax revenues and borrowing.
He said this situation has pushed governments to explore alternative ways of financing development, including the use of Public-Private Partnership (PPP) models.
Kafulila made the remarks on June 26, 2026, while delivering a lecture at Mzumbe University on the topic: “Public-Private Partnership (PPP): A Strategic Pillar in Financing the Fourth Development Plan and Vision 2050.”
He explained that the global economy currently relies significantly on borrowing from governments, the private sector, and households, which contributes to the availability of funds for various development activities.
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He said although governments use borrowing to finance development projects, there are limits to increasing taxes, as excessive or poorly structured taxation can negatively affect production, investment, and economic growth.
He emphasized the importance of maintaining a balance between government revenue collection and creating a favorable environment for businesses and investments to support economic growth.
Furthermore, Kafulila said Tanzania has continued to benefit from concessional loans with favorable conditions and low interest rates, which have helped reduce the actual cost of public debt and provided room to continue financing development projects effectively.