Financial literacy key to achieving Dira 2050

DAR ES SALAAM: THE government has stressed that equipping young people with financial literacy is essential to building the investment skills, entrepreneurship and informed decision-making needed to realise Development Vision 2050 ambitions.

This move to promote financial education among young people aims to strengthen their understanding of savings, investment opportunities and financial risks, enabling them to participate more effectively in the country’s economic transformation.

Minister of State, President’s Office (Youth Development) Mr Joel Nanauka said yesterday in Dar es Salaam that financial education should equip young people to identify investment opportunities, assess risks and manage resources responsibly in business and everyday life.

“Financial literacy is important because it gives young people the knowledge and confidence to manage their finances responsibly. It helps them understand the value of saving, identify suitable investment opportunities and assess the risks associated with financial decisions,” he said.

Mr Nanauka said strengthening financial literacy was essential to developing the skills, confidence and resilience young people needed to contribute to the country’s long-term economic ambitions. He cautioned against portraying investment as a shortcut to wealth, emphasising that investors needed to understand the products they selected, their associated costs and risks and how investments aligned with their financial goals.

“Before investing, people must understand what they are choosing, the risks involved and their own financial objectives. Investment requires knowledge, patience and a long-term strategy,” he said.

The Dar es Salaam Stock Exchange (DSE) Scholar Investment Challenge has emerged as one avenue for promoting financial knowledge among students. Since its introduction in 2014, the initiative has attracted 50,000 participants, including 7,883 in the 2025/26 edition.

ALSO READ: iTrust ETFs open doors to Africa’s investment markets

The competition gives students practical exposure to capital markets, helping them understand investment principles and the role of markets in mobilising funds for economic development.

DSE Business Development Manager Mr Emmanuel Nyalali said the challenge formed part of the bourse’s broader efforts to expand market access, strengthen digital systems and increase investor participation under its 2023–2027 strategic plan.

He said the competition introduced students to capital markets before they became investors, while demonstrating how businesses could raise funds to expand operations, establish projects and create employment opportunities.

“We will continue working with educational institutions and other stakeholders to ensure financial education reaches more young people and that participants continue sharing their knowledge beyond the competition,” he said.

Mr Nyalali added that developing a strong capital market required informed investors, suitable investment products and accessible services. He said the challenge was intended to prepare young people to make informed financial decisions and contribute to Tanzania’s future economic growth.