On 15th June 2016, the World Bank (WB) approved the Education and Skills for Productive Jobs (ESPJ) Program in Tanzania to promote skills development in its key economic sectors.
Tanzania’s ESPJ is being financed with USD120m under the WB’s International Development Association (IDA).
The funds will be directed at training 30,000 youths in tourism, agriculture, agribusiness and agro-processing, transport and logistics, construction, communications and energy.
At the same time, the project estimates that 15m young Tanzanians will enter the labor market over the next 15 years.
Most of the employment will be in the private sector, particularly in agriculture but also in services (trade, hotels, transport, construction, and financial services), and manufacturing and mining to a smaller extent.
“The improvement of human capital by helping address the skills gap is critical for the attainment of the country’s goal to become an industrialized economy, create income opportunities and reduce poverty […]”, said Bella Bird, WB’s Country Director for Tanzania, Malawi, Burundi and Somalia.
ESPJ aligns with Tanzania’s Five Year Development Plan 2016–2021 (FYDP II), which implements Tanzania’s 2025 Vision to become a semi-industrialized country by that year.
To achieve this, Tanzania aims to develop a broad and diverse base of manufacturing, processing and packaging industries that will lead both the productive as well as the export trade sector.
Foreign Direct Investments (FDIs) are expected to provide the capital for the desired industrial development.
In addition the Government will support Tanzania’s industry through the establishment of an industrial development bank and reduction of taxes on locally produced goods.
In order to accelerate industrialization, Tanzania’s President John Magufuli urged banks to lower interest rates for industrial projects.