Private investors participating in Public-Private Partnership (PPP) projects in Tanzania experience various benefits as stated under Public Private Partnership (Amendment) Act No. 04, 2023  section 21  which provides that a project undertaken in accordance with the provisions of the Act, qualify for enjoyment of benefits to similar investment as aligned under the Tanzania Investment Act, such benefits include tax incentives that enhance the attractiveness and viability of their investments. Other benefit includes:

• Profitability: Returns on investment are realised from the successful completion and operation of projects, providing a strong incentive for private sector involvement.

• Risk Sharing: The PPP framework facilitates the distribution of risks between the public and private sectors, reducing the burden on any single party and enhancing project feasibility.
• Long-term Partnerships: PPPs typically involve long-term agreements, offering sustained income and fostering lasting relationships that benefit ongoing business interests.
• Innovation: Investors are encouraged to introduce innovative technologies and practices that improve project efficiency and effectiveness, thereby increasing the overall value of their investments.
• Stable Income Flows: The long-term nature of most PPP agreements ensures that investors enjoy stable and predictable income streams.

Moreover, 2023 amendments to the PPP Act have introduced significant incentives to strengthen private sector confidence and commitment. These incentives include benefits aligned with the Tanzania Investment Act, Cap. 38 (TIA), which provides tax reliefs and exemptions to reduce the financial burdens on investors. Additionally, according to the PPP law, the government can, where suitable, become an equity shareholder in the Special Purpose Vehicle (SPV), with a maximum stake of 25%. The latter mitigates various project risks and aids in capital-raising efforts.      Further, Public Private partnership (Amendment) act 2023 under section 21 provides that a project undertaken in accordance with the provisions of the Act, qualifies for enjoyment of benefits to similar investment as aligned under the Tanzania Investment Act, such benefits include tax incentives.

These legislative enhancements make investing in Tanzanian PPP projects strategically advantageous and financially beneficial, further encouraging private sector participation in the nation's development.