Description

This report explores private-public partnerships in Tanzania, analyzing the business environment and local content requirements through a political settlement lens rather than an institutional economic perspective. It highlights the interplay of internal and external factors influencing private sector capacity, including science, technology, innovation incentives, government policy, and socio-economic trends. Despite efforts by the Government of Tanzania (GoT) to enhance the business environment and promote technology transfer, the implementation of local content reforms has been hindered by socio-political dynamics, particularly the interaction between the ruling coalition and private sector actors. The report underscores the complexities of technology transfer, emphasizing the need to build technological capabilities while addressing practical and theoretical knowledge gaps. The political settlement framework reveals challenges in aligning the GoT's developmental ambitions with private sector expectations, which by 2015 had led to a legitimacy crisis driven by corruption and tax evasion. A subsequent shift in governance sought to discipline rents and improve public-private collaboration while maintaining local content requirements. However, this approach has introduced trade-offs that demand non-confrontational strategies and dialogue mechanisms to balance public policy goals with private sector interests. The report concludes that fostering technology transfer and improving Tanzania's business environment requires a deliberative process to ensure public buy-in, address socio-political realities, and create a feedback mechanism for sustainable development.