TANZANIA - The African Development Bank (AfDB) has approved a loan of US$129.71 million to support Tanzania's efforts to engage its youth in agriculture. 

The funding, part of President Samia Suluhu Hassan’s flagship initiative, aims to transform agriculture into a viable career option for young Tanzanians, with a focus on creating sustainable agribusiness enterprises.

The project, titled “Building a Better Tomorrow: Youth Initiatives for Agribusiness” (BBT-YIA), will receive the loan to cover 53.8% of the total cost of its first phase, which is estimated at US$241.3 million. The Tanzanian government is set to contribute US$110.41 million (45.8%) toward the project’s expenses.

In addition to the AfDB loan, two grants have been secured to complement the funding: US$1.15 million from the Korea-Africa Economic Cooperation (Koafec) and US$210,000 from East-West Seed, a Thailand-based tropical vegetable seed company. 

These grants will further bolster the program, which was launched by President Suluhu in March 2023 in the lead-up to the Africa Food Systems Forum held in Dar es Salaam.

Incubating agripreneurs

The project is expected to incubate and empower approximately 11,000 young agripreneurs, including at least 6,000 new agribusiness owners. It will also facilitate access to financing for 2,500 young people already involved in agribusiness but struggling to secure commercial loans.

“This initiative aims to equip the youth with the tools they need to succeed in agribusiness, empowering them to generate employment and grow Tanzania’s agriculture sector,” said AfDB’s Country Manager for Tanzania, Patricia Laverley. 

She noted that each youth-led agribusiness is expected to employ an average of five workers, amplifying the project’s impact across the sector.

A national vision for agriculture

President Suluhu, speaking at the Feed Africa Summit in Dakar earlier this year, emphasized that the BBT-YIA project is integral to Tanzania's broader Agenda 2030 policy, which seeks to increase agriculture’s contribution to the country's gross domestic product (GDP) to 10% by the end of the decade.

“This project is about preparing the youth to be active participants in shaping our agricultural future,” Suluhu said during the January 2023 summit, adding that 680,000 hectares of land would be allocated to groups of women and youth, with each participant receiving 10 hectares. 

This land allocation is central to the government’s strategy to lure young people into agriculture.

The program's long-term objectives include establishing at least 12,000 profitable, youth-led agricultural enterprises over the next 12 years. 

As part of this initiative, more than 200,000 youths will be trained, and 20,000 will participate in internships. Additionally, 15,000 youth-led agribusinesses will receive mentorship through incubation programs.

Youth-led agribusiness and the future of Tanzania’s agriculture

Agriculture, which employs nearly 70% of Tanzania’s population, is widely viewed as a critical sector for the country’s economic growth and food security. However, the sector has historically struggled to attract young people, who often view it as an outdated and unprofitable industry. 

The BBT-YIA project is one of several initiatives aimed at changing that perception and making agriculture more attractive to Tanzania's youth.

Tanzania's Agriculture Minister, Hussein Bashe, has been a key figure in promoting the program alongside President Suluhu. They hope the initiative will address the unemployment challenge facing the country’s youth by providing them with the resources and opportunities to succeed in agribusiness.

The BBT-YIA initiative aligns with broader continental efforts to modernize agriculture and ensure food security across Africa. At the recent Africa Food Systems Forum in Dar es Salaam, global and regional leaders discussed how youth engagement in agriculture is crucial for meeting the continent’s growing food demands.