Tanzania’s youth dividend hinges on jobs, not just training

The theme captures a reality shared by young people across countries. Despite differences in culture, income and opportunity, they want quality education, decent work, economic independence and a meaningful stake in their societies.

For Tanzania, however, the challenge goes beyond the conventional definition of unemployment.

The country has recorded sustained economic growth, expanded access to higher education and invested heavily in skills development.

Yet the International Labour Organisation (ILO) says Tanzania’s youth unemployment rate stands at 11.5 percent despite years of economic growth averaging about seven percent.

More importantly, the organisation observes that gains in economic growth and education have not translated into enough productive and decent employment.

Experts say, that is the paradox Tanzania must confront.

Every year, more young people acquire qualifications, while many of the jobs available remain concentrated in low-productivity and informal activities.

The result, a youth adviser based in Dar es Salaam, Dr Hamisi Tumbo, notes, is a growing gap between what young people are being prepared for and what the labour market can absorb.

The expansion of higher education illustrates the scale of the challenge. Tanzania admitted more than 170,000 students into university programmes for the 2025/26 academic year. This expansion is positive because a modern economy requires a stronger pool of professionals, researchers, scientists and entrepreneurs.

“But a degree certificate alone cannot guarantee economic independence when the structure of job creation is not expanding at the same speed,” he told The Citizen yesterday.

The same challenge exists at the vocational level.

A World Bank assessment of Tanzania’s skills system warns that the country’s rapidly growing youth population faces difficulties entering the labour market partly because of limited employable skills.

It argues for a stronger connection between training and the actual demands of employers.

This is why Tanzania’s current policy response matters.

The government has increasingly moved towards treating youth development as an economic investment rather than simply a social welfare issue.

The creation of the President’s Office–Youth Development ministry provides a dedicated institutional structure for coordinating interventions targeting young people.

The docket’s minister, Mr Joel Nanauka, recently noted that the government has also put substantial resources behind the agenda.

“Among the major initiatives is the Sh200 billion Youth Development Fund, intended to improve young people’s access to affordable capital for economic activities,” he said.

The government is simultaneously trying to address the skills side of the equation.

The expansion of vocational education, including the construction of 103 vocational secondary schools and district-level VETA centres, is intended to give young people practical skills that can be converted into employment or self-employment.

That direction is increasingly consistent with international thinking on youth employment. In March this year, the World Bank approved the $300 million Second Education and Skills for Productive Jobs programme for Tanzania, whose objective is to strengthen skills development.

Another World Bank-supported package is expected to benefit more than three million Tanzanians through education, skills and social protection interventions.

But so, Dr Tumbo says Tanzania cannot solve its youth challenge by expanding classrooms alone.

“It must also expand the economy’s capacity to use what those classrooms produce,” he noted.

He further noted that universities must become more responsive to emerging industries, while employers should have a stronger voice in determining the skills taught.

According to a youth advocate, Mr John Mmari, digital technology presents another opportunity, but one that Tanzania must approach carefully.

He said that with expanding connectivity, young people are increasingly participating in digital entrepreneurship, online services, creative industries, freelancing and technology-based businesses.

However, internet access by itself does not create livelihoods,” he argued.

“Young people need digital skills, access to devices and finance, reliable electricity, payment systems, markets and protection from exploitative forms of online work.”

This is where the concept of a youth dividend becomes important.

Tanzania’s large young population can become one of the country’s greatest economic advantages if young people are educated, healthy, skilled, employed and able to start productive businesses.

The government therefore deserves credit for bringing together education financing, vocational training, youth capital and employment-oriented programmes. But the next phase must be judged by outcomes rather than inputs.