The African Development Bank (AfDB) has approved a $129.71 million loan to support Tanzania’s youth-focused agribusiness programme, Building a Better Tomorrow: Youth Initiatives for Agribusiness. The initiative, launched on September 20 2024, aims to create business opportunities and jobs for young people in key agricultural sectors, contributing to the country’s economic growth and employment rates.
The programme’s first phase will be funded by a total of $241.27 million, with the AfDB covering 53.76 percent of the cost. Additional funding will come from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund, contributing $1.15 million, and tropical vegetable seed company East-West Seed, which is providing $210,000. The Tanzanian government will finance the remaining 45.76 percent, amounting to $110.41 million.
Patricia Laverley, AfDB’s Country Manager for Tanzania, highlighted the program’s impact: ‘This project is expected to incubate and empower around 11,000 “agripreneurs,” including 6,000 young agribusiness owners. It will also facilitate access to finance for an additional 2,500 young people already engaged in agribusiness but lacking access to commercial loans.’
The project will utilise digital technologies, including satellite and artificial intelligence, to boost agricultural productivity and decision-making. It will also prioritise the recruitment of female entrepreneurs and provide training for agrifood business incubation and acceleration.
As of mid-2024, the AfDB has approved 25 projects in Tanzania, with a total commitment of $3.48bn.
Source: Africabriefing
