Tanzania launches Sh200bn youth loan scheme to boost jobs and enterprise

Launching the programme in Arusha on Thursday, July 9, Minister of State in the President's Office for Youth Development Joel Nanauka said loans would be disbursed only to eligible and viable projects following a rigorous assessment process.

He said Arusha Region had been allocated Sh730 million under the programme.

Of the amount, Sh500 million will finance research and the production of human medicines, Sh130 million will support a youth-owned factory manufacturing dust-free chalk and Sh100 million will finance nutrition-related enterprises run by Mama na Baba Lishe groups.

Mr Nanauka said the first phase of the programme would finance youth-led projects worth Sh8 billion through the Youth Development Fund.

He described the rollout as the beginning of a nationwide programme that will be expanded as more funding becomes available and implementation demonstrates results.

"The primary objective is to economically empower young people while accelerating production, employment creation and national economic growth by addressing the longstanding challenge of limited access to capital, which has prevented many innovative young entrepreneurs from starting or expanding their businesses," he said.

He said the programme would promote youth self-reliance by supporting investments in agriculture, livestock, fisheries, manufacturing, trade, innovation, technology and service industries.

According to Mr Nanauka, the Government received 30,384 applications from across the country covering projects in agriculture, livestock, fisheries, manufacturing, commerce, innovation, technology and other service sectors.

Following the assessment, the Government approved the first batch of projects worth Sh8 billion under the Youth Development Fund.

He reminded beneficiaries that the loans were not grants but a national investment intended to build sustainable businesses, increase productivity, expand small industries and create employment opportunities.

"The success of this programme will not be measured solely by the amount of money disbursed, but by increased production, business growth, higher household incomes, new jobs and the overall contribution of young people to the national economy," he said.

Mr Nanauka urged beneficiaries to use the funds for their intended purposes, maintain proper financial records and repay the loans on time to ensure the programme remains sustainable and benefits more young people.

He also called on financial institutions, regional leaders, local government authorities, the private sector and development partners to work with the Government to ensure the funds are managed transparently and reach the intended beneficiaries.

He further encouraged young entrepreneurs to embrace opportunities in the digital economy, invest in value addition and build competitive businesses capable of serving both domestic and international markets.

Speaking at the launch, CRDB Bank Meru Branch Manager Haika Mawalla said the bank was committed to implementing the programme transparently and efficiently to ensure it benefits as many eligible young entrepreneurs as possible.

She said the bank would complement the loans with financial literacy training, business management skills and guidance on prudent loan utilisation.

"We believe that access to capital, combined with knowledge and financial discipline, forms the foundation of successful and sustainable entrepreneurship. We encourage young people to utilise this opportunity responsibly and innovatively so that these loans become a catalyst for increased production, employment and economic growth," she said.

Ms Mawalla added that CRDB Bank would continue working with the Government to expand the programme and support a more competitive, youth-driven economy.

"We are confident that through this partnership we will empower more young people and promote inclusive economic growth across the country," she said.