Education funding, brighter prospects for youth

DAR ES SALAAM: INVESTMENT in education is a cornerstone of national development, driving economic growth, boosting productivity and equipping the workforce with the skills and expertise needed to meet the demands of a rapidly evolving economy.

In pursuit of this ambition, the government, under the leadership of President Samia Suluhu Hassan, has continued to expand opportunities for Tanzanians to access higher and middle level education through increased funding for student loans and scholarships.

One year after President Samia was sworn in for her current term in November last year, efforts to strengthen student financing have remained central to her administration’s commitment to expanding access to education.

These measures have particularly benefitted young people from financially disadvantaged families, giving them an opportunity to pursue their academic ambitions despite financial constraints.

Among the measures reflecting the commitment are increased funding for the Higher Education Students’ Loans Board (HESLB), the expansion of eligibility to include diploma students, the strengthening of special scholarship programmes and improvements to service delivery systems.

According to the HESLB statistics, in the 2025/2026 academic year, the government allocated 916.7bn/- for student loans and grants, enabling 289,932 students to receive financial support at various higher education institutions.

This was followed by a further significant increase in the 2026/2027 academic year, when the government allocated 1.06tri/- for loans and grants, representing an increase of approximately 15.6 per cent compared with the previous academic year.

The funds are expected to support at least 300,000 students, demonstrating the government’s continued investment in equipping young people with the education, knowledge and skills needed to participate effectively in economic and social activities.

HESLB said the increase forms part of the government’s strategy to widen access to higher and middle-level education, while the institution continues to improve service delivery systems and the sustainability of the student loans fund.

Another indication of progress was the announcement of the first allocation of loan funds for the 2026/2027 academic year, through which HESLB awarded financial support to 165,775 students, amounting to 535.7bn/-.

Speaking to journalists in Dar es Salaam the HESLB Executive Director, Dr Bill Kiwia, said that the beneficiaries include new and continuing undergraduate and diploma students, as well as recipients of the Samia Scholarship programme.

Among newly admitted undergraduate students, 74,769 were allocated loans worth 246.88bn/-. In addition, 8,538 new diploma students received loans amounting to 22.9bn/-, while another 873 students were awarded grants worth 4.5bn/- under the Samia Scholarship programme.

For continuing students, 79,115 undergraduates received loans worth 252.4bn/-. A further 1,554 continuing diploma students were allocated 3.8bn/-, while 926 continuing Samia Scholarship beneficiaries received grants amounting to 5.1bn/-.

These figures demonstrate how the sixth phase government is directing financial resources towards different categories of students, ensuring that educational opportunities are available not only to new entrants but also to those continuing their academic journeys.

However, it is important to distinguish between the funds allocated to students during this phase and the total annual budget, as HESLB indicated that loan allocations would continue in line with university admissions and the completion of application procedures.

One important step towards expanding access to education was the inclusion of diploma students in the HESLB financing system, beginning in the 2023/2024 academic year.

This has been particularly important for young people seeking professional and practical skills in various fields without necessarily having to pursue a bachelor’s degree.

For the 2026/2027 academic year, the government plans to support 24,978 diploma students pursuing priority fields, including 14,000 new students. This expansion reflects the needs of the labour market, which requires professionals at different levels, including technicians and specialists in technology, health, engineering and other fields that contribute to production and service delivery.

Consequently, extending student loans to diploma programmes helps challenge the perception that higher education should be measured solely by the number of university graduates.

Instead, it recognises the importance of professional and technical training in building a productive economy and creating opportunities for young people to become self-employed or secure employment.

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During the same academic year, the government also plans to support 513 students pursuing the Postgraduate Diploma in Legal Practice, including 350 new entrants. Alongside conventional student loans, the government has continued to strengthen the Samia Scholarship programme, which supports academically outstanding students, particularly those pursuing Science, Technology, Engineering and Mathematics (STEM) disciplines.

The programme was introduced in the 2022/2023 academic year, benefiting 636 students in its initial phase. For the 2026/2027 academic year, Samia’s government plans to support 2,738 students through the programme, including 1,000 new beneficiaries.

In the first allocation announced in October this year, 873 new students received 4.5bn/-, while 926 continuing students were allocated 5.1bn/-. The programme is important in increasing the number of professionals in fields associated with technological transformation and the demands of the modern economy.

In another development, HESLB said that the government has continued to expand partnerships with various institutions to increase sources of educational funding.

These include a partnership between HESLB and the Bank of Tanzania (BoT) to finance postgraduate studies through the Mwalimu Julius Nyerere Memorial Master’s Degree Scholarship. HESLB has also formalised a partnership with the Ngorongoro Conservation Area Authority (NCAA) to support students from conservation areas who are pursuing courses related to conservation.

These initiatives demonstrate how student financing is expanding beyond the conventional loan system to involve strategic partners in supporting young people’s education. The expansion of student loans and grants is aligned with the objectives of the National Development Vision 2050, which emphasises building a high-quality, inclusive education and training system, as well as increasing the number of Tanzanians accessing higher education.

The Vision aims to ensure that at least 25 per cent of Tanzanians attain higher education by 2050. During a media briefing held in December last year, the Minister for Education, Science and Technology, Professor Adolf Mkenda, outlined various government initiatives aimed at expanding educational opportunities and preparing young people with skills required in the labour market.

He said that the higher education loans budget has increased from 464bn/- in the 2020/2021 academic year to 916.7bn/- in 2025/2026. He also explained that the number of loan beneficiaries has risen from 142,170 students in 2020/2021 to 248,332 students in 2024/2025, including diploma students.

The Minister further explained that the government has continued to link access to education with national development priorities through various scholarship and training programmes. These include the Samia Scholarship Extended programme for postgraduate students pursuing nuclear science, as well as Samia Extended DS/ AI+, which aims to develop specialists in artificial intelligence, data science and related disciplines.

“These measures demonstrate that investment in education is not simply about increasing student enrolment, but also about developing professionals capable of responding to the needs of an economy increasingly driven by technology, innovation and knowledge,” said Prof Mkenda.

To ensure that increased funding goes hand in hand with efficient service delivery, HESLB has also continued to improve the use of technology in its operations. According to Dr Kiwia, approximately 95 per cent of the institution’s services are now delivered through digital platforms, unlike in previous years when many processes relied on paperbased procedures.

The systems include OLAMS for loan applications, SIPA for communication and monitoring applicants’ information, the HESLB App for various beneficiary services and DiDiS for processing tuition fee payments. The institution has also begun using artificial intelligenceassisted systems known as “Bwanaboom” and “Bibiboom” to help answer students’ and members of the public’s questions about loan services.

These improvements are intended to reduce application processing time, simplify communication and increase transparency in service delivery. For students, these systems make it easier to obtain information about applications, monitor loan allocations and complete the required procedures without making repeated visits to HESLB offices.

However, HESLB continues to remind students that receiving a loan allocation does not mean that funds will automatically be deposited into their accounts without completing university registration, verification of information and submission of valid bank account details.

To ensure that government investment in education remains sustainable, HESLB has also strengthened strategies for collecting and recovering loans from beneficiaries who have completed their studies.

According to Dr Kiwia, by June 2026, a total of 1.91tri/- has been collected out of 2.77 tri/- in loans that had fallen due for repayment, representing a recovery rate of 69 per cent. During the 2025/2026 financial year, he said HESLB collected 235.5bn/-, equivalent to 107 per cent of its 220bn/- target. This was reported as the highest collection since the institution was established.

These achievements are directly important in increasing the fund’s capacity to support other students, since repaid loans can be reinvested in financing future beneficiaries. Furthermore, HESLB has introduced a strategy to reach beneficiaries working in the informal sector, whose incomes are not necessarily received through regular monthly payment arrangements.

HESLB Director of Loan Repayment and Recovery, George Mziray said the institution has introduced a flexible instalment payment system to enable beneficiaries to repay their loans according to their financial capacity. He explained that through this initiative, 4,683 beneficiaries have been reached and enrolled in the system, with outstanding debts amounting to 40bn/-.

Of this amount, 5.1bn/- has already been collected. Nevertheless, HESLB continues to face challenges in reaching some beneficiaries who have not yet started repaying their loans. According to Dr Kiwia, debts owed by this category are estimated at 800bn/-.

Despite the achievements recorded, expanding educational opportunities must continue to go hand in hand with transparency, fairness and efficiency in loan allocation. HESLB has acknowledged that several areas still require improvement, including communication with beneficiaries, access to accurate information from higher education institutions and reaching graduates working in the informal sector.

Furthermore, the growing number of young people seeking financial support continues to increase funding requirements, making the identification of alternative sources of educational financing increasingly important. In response, HESLB has begun exploring the possibility of accessing capital markets through a specialised education bond, alongside expanding partnerships with private sector stakeholders and other institutions.

Dr Kiwia said the board plans to raise about 4tri/- through capital markets as it seeks to diversify funding sources and extend higher education financing to more Tanzanian students.

He said the proposal is still subject to the completion of legal procedures and obtaining the necessary approvals from the Capital Markets and Securities Authority (CMSA) and other relevant authorities before implementation.