Tanzania Government Will Provide Youth With Loans For Agribusiness

Tanzania’s National Parliament adopted a resolution on 4 February 2013 to start a new government programme. This program will provide loans to youth under 35 who are interested in starting agricultural businesses. 

Under the new legislation, TZS 200 Billion (USD 24 Million) will be earmarked annually from the national budget for the project.

The Youth Fund will be an important means to curb the problem of youth unemployment in the country. It will also empower the young population to create their own employment opportunities.

At the same time, it will be an excellent way to stimulate food production in Tanzania hence helping the country meet existing agricultural demands.

According to the 2012 population and housing census, there are 44,929,002 people in Tanzania, with 63% of the population below the age of 30 and approximately 30 million people (about 75%) of the total population in rural areas.

The new project is part of the government’s plan to invest a growing share of its budget in agriculture. A previous example of encouraging broader commitments to agribusiness development has been the Southern Agricultural Growth Corridor of Tanzania (SAGCOT).

According to the Director of Youth Development in the Tanzanian Ministry of Information, Culture and Sport, Mr Elisante Ole Gabriel, in the coming months the government will provide more details on how and where to apply for access to the funds. The youth fund will be available in the fiscal year beginning on 1 July 2013.