MWE Correspondent
The Tanzanian government has reaffirmed its commitment to youth economic empowerment, revealing that local government authorities across the country have continued to allocate a portion of their internal revenues to provide loans for special groups, with young people remaining key beneficiaries.
Speaking to journalists in Dar es Salaam on Tuesday, Minister of State in the President’s Office responsible for Youth Development, Joel Nanauka, said councils are required to set aside 10 percent of their internally generated revenues to support special groups, of which four percent is specifically reserved for youth. The initiative, he said, is part of broader government efforts to address unemployment and limited access to capital among young Tanzanians.
According to the minister, between 2021 and 2025, a total of Sh36 billion was disbursed to youth groups through various councils nationwide. The funds supported 2,867 youth groups engaged in a wide range of income-generating activities, including agriculture, livestock keeping, entrepreneurship and service provision. Nanauka said the programme has helped many young people overcome one of their biggest challenges — access to start-up and expansion capital.
“Young people have ideas, energy and ambition, but lack of capital has remained a major barrier,” the minister said. “These loans are designed to unlock that potential and enable youth to participate meaningfully in the economy.”
Nanauka added that the government continues to strengthen oversight to ensure the funds reach intended beneficiaries and are used productively. He urged youth groups to manage the loans responsibly so that the revolving fund can benefit more applicants in the future. The initiative aligns with Tanzania’s broader youth empowerment agenda, which focuses on economic inclusion and skills development.
Beyond access to loans, the minister also called on young entrepreneurs to take advantage of opportunities in public procurement by registering in the national procurement system. He said many young people are missing out on lucrative government tenders simply because they are not formally registered or lack awareness of existing provisions.
Nanauka explained that recent amendments to the Public Procurement Act now require all public institutions and government agencies to allocate 30 percent of their procurement budget to special groups. These include youth, women, people with disabilities and the elderly — a move aimed at expanding participation of historically underrepresented groups in government business.
“This reform is meant to open doors,” he said. “Public procurement is a major driver of economic activity. If young people organise themselves, register their companies and meet the requirements, they can benefit significantly from this policy.”
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Experts say preferential procurement policies have become an important tool globally for promoting inclusive growth and supporting small and medium enterprises, particularly among vulnerable groups. The approach is widely seen as a catalyst for economic development when paired with access to finance and capacity-building.
Nanauka acknowledged that while policies are in place, challenges remain, including limited awareness, weak business skills and difficulties in meeting compliance standards. He said the government is working with various stakeholders to provide training and mentorship to help youth-led enterprises become more competitive and sustainable.
The minister also encouraged councils to improve transparency and timely disbursement of funds, noting that delays can undermine the effectiveness of empowerment programmes. He said strengthening coordination between local authorities and central government remains a priority.
As Tanzania continues to pursue inclusive growth, the combination of targeted youth financing and reserved government procurement opportunities is expected to play a critical role in reducing youth unemployment and fostering self-reliance. Analysts say the long-term success of the initiative will depend on accountability, financial discipline and the ability of young entrepreneurs to scale their businesses within a competitive market environment shaped by evolving public procurement systems.
With the youth population forming a significant share of Tanzania’s workforce, officials say sustained investment in empowerment programmes is not only a social imperative but also a strategic economic necessity for the country’s future.
