Building an economy where decent jobs drive transformation
TANZANIA: TANZANIA has entered a new era of national planning with the implementation of its Dira 2050 beginning in the 2026/27 financial year.
The country has set an ambitious target of building a 1 trillion US dollar- economy by 2050, a transformation that will require more than economic growth and infrastructure. It will also depend on productive enterprises and, crucially, stable, dignified and decent employment.
At the heart of this agenda is the recognition that workers are not merely beneficiaries of development but among its most important drivers. Tanzanians therefore have a direct stake in achieving Dira 2050, while the government has a responsibility to ensure that economic transformation improves their livelihoods and working conditions.
According to the International Labour Organisation (ILO), decent work rests on four pillars: Access to employment, protection of workers’ rights, social protection and social dialogue involving employers, workers and government.
These principles align with Sustainable Development Goal 8, which promotes decent work and economic growth. Dira 2050 reflects this commitment through its aspiration for better lives and well-being for all. One of its targets is to ensure that at least 50 per cent of Tanzanians hold decent jobs in the formal sector.
This points towards a labour market characterised by job security, fair remuneration, safe working conditions and protection of workers’ rights rather than vulnerability and informality. Among the priority sectors expected to drive this transformation are agriculture, manufacturing, financial services and energy.
However, economic expansion alone will not suffice. Tanzania must also create productive livelihoods, improve incomes and extend social protection. In essence, the country is pursuing growth that delivers dignity.
Agriculture remains the backbone of Tanzania’s economy, contributing approximately 26.5 per cent of national output, employing about 65 per cent of the labour force and generating around 30 per cent of export earnings.
Its linkages with manufacturing, transport and trade also make it an important source of employment and income. Between January and September 2025, the sector grew by 4.0 per cent and contributed 24.6 per cent of national output. Under the sixth phase government, investment in agriculture has increased significantly.
The Ministry of Agriculture’s budget rose from 294bn/- in 2021/22 to 1.19tri/- in 2025/26, reflecting the government’s determination to make the sector a major driver of growth and job creation. Dira 2050 envisages a modern, productive, sustainable and internationally competitive agricultural sector.
Achieving this will require investment in technology, climate-resilient infrastructure, irrigation, affordable energy, finance and expanded markets. A major focus is creating opportunities for young people and women.
The Ministry of Agriculture has set a target of generating three million jobs for these groups by 2030 through initiatives including the flagship Building a Better Tomorrow (BBT) programme.
BBT seeks to prepare a new generation of farmers by improving access to land, technology, capital, irrigation infrastructure and markets. Its objective is to enable young people to participate not only as agricultural labourers but also as entrepreneurs and investors across agricultural value chains.
According to Minister for Agriculture Mr Daniel Chongolo, during 2025/26 the ministry planned to identify, survey and acquire 80,000 hectares of land, initiate investment in the 20,000-acre Mapogoro farm in Chunya, Mbeya, construct eight warehouses with a combined capacity of 1,000 tonnes and build a 1,000-tonne cold-storage facility.
By March 2026, areas covering 7,019 hectares had been identified in Coast Region and Tanga for large-scale joint farms. Additionally, 18 local government authorities had set aside land for young people to establish joint farms. Finance is another important component.
The ministry allocated 6bn/- to the Agricultural Inputs Trust Fund (AGITF) during 2025/26 to support lending to young people and women. A further 35 million US dollars was earmarked over five years through guarantee schemes, direct lending and equity financing for value addition in strategic crops.
By March 2026, a special financing window had provided 5.5bn/- in loans at interest rates not exceeding seven per cent. For 2026/27, the ministry plans to expand BBT, construct irrigation infrastructure, facilitate loans, support seedling production, promote value addition and enable young people and women to provide agricultural extension services.
Agricultural expert and Afriflux Limited founder, Engineer Dickson Mallya, said modern agriculture, particularly irrigationbased farming, offers an important pathway towards more productive and stable employment. He argues that Tanzania’s agricultural potential remains underutilised despite abundant land and favourable conditions.
“The challenge is that we are still producing below our potential. If we master irrigation and modern agriculture, people can produce throughout the year,” he said.
Mr Mallya also emphasises the importance of private-sector investment and timely access to finance, noting that delays can undermine agricultural opportunities.
“If someone applies for a loan today and receives it after 10 months, the money may no longer have the same value as when it was needed,” he said.
He adds that expanding irrigation and modern agricultural technologies will create demand for technicians capable of designing, installing and maintaining farming systems, opening new opportunities for skilled young people.
Industry: From production to employment
While agriculture provides the economic foundation, industry is expected to drive value addition by transforming raw materials into competitive products. Dira 2050 identifies industrialisation as essential to diversifying the economy, reducing reliance on imports and expanding exports.
The industrial sector currently contributes 8.1 per cent of GDP and grows at approximately eight per cent annually. The long-term ambition is to establish Tanzania as a globally competitive industrial hub by 2050, supported by technological advancement, its agricultural base and growing domestic market.
According to Minister for Industry and Trade Judith Kapinga, 25 new large and medium-sized factories commenced production during 2025/26, creating 39,250 jobs. Of these, 7,635 were direct jobs and 31,615 indirect employment opportunities.
However, the Confederation of Tanzania Industries (CTI) said sustained employment growth will depend on an enabling environment that allows manufacturers to invest and expand.
CTI Policy Specialist Isack Msungu said the sector offers significant opportunities for young people and women, particularly in professional, technical and leadership positions. Citing the 2023 Census of Industrial Production, he said the sector recorded 311,007 jobs, with 228,034 held by men and 82,973 by women.
Women therefore accounted for 26.7 per cent of industrial employment. Mr Msungu argues that expanding production, investment and domestic value chains, alongside skills development and safe working environments, will be essential to increasing formal and sustainable employment.
He identifies reliable and competitively priced energy, affordable capital, infrastructure, predictable policies, access to raw materials, technology and technical skills as important requirements. “For Tanzania’s industrial ambitions to translate into more employment, the relationship between government and the private sector will remain important,” he said.
Finance: Enabling people to create jobs
Access to finance is another important driver of Dira 2050, particularly as population growth and urbanisation increase demand for credit, insurance, investment and savings. An inclusive financial system can support entrepreneurship, formalise economic activities and enable businesses to expand.
Mobile money and digital banking have already widened access, although challenges remain, including inadequate digital infrastructure, cybersecurity concerns, high costs and limited digital capabilities. For young people and women, affordable financing has become a major government priority.
Through the 10 per cent loan scheme funded from local government revenues, 130.42bn/- had been disbursed to 12,997 groups of young people, women and persons with disabilities by February 2026, according to the Prime Minister’s Office – Regional Administration and Local Government.
A total of 49.11bn/- had been repaid. In Mbinga, beneficiaries say the financing has enabled them to increase business capital and invest in productive activities, including coffee farming. Flora Mbunda said the interest-free financing has helped women participate in economic activities, while Mathius Komba said small businesses, including grocery shops, have used the loans to increase stocks, attract customers and improve incomes.
At national level, the government has also established the National Youth Economic Empowerment Programme. In February 2026, 200bn/- was allocated to the Office of the President responsible for Youth Development to improve access to capital for small and medium-sized enterprises and start-ups.
According to Minister Joel Nanauka, the programme had received 30,384 applications for youth project loans by April 2026. The first phase provided 48.6bn/- to productive and service sectors, including agriculture, livestock, fisheries, small businesses, industries, arts, technology and digital services.
It is expected to benefit approximately 10,000 young people. A second phase received 2.5bn/- and is expected to benefit about 888 young people through 36 projects, with 4,440 jobs projected.
TradeMark Africa Resident Director Elibariki Shame said financial institutions should develop products that respond to the specific needs of women and young people across value chains. Access to finance, technology, information and markets, he argues, can help them increase value addition, improve household incomes and strengthen their contribution to the economy.
Energy: Powering investment and employment
Reliable and affordable energy is essential for households, businesses, factories and other productive activities. It is therefore a critical component of Dira 2050’s employment agenda.
In the oil and gas industry, the government is promoting local participation through local content requirements and community investment initiatives.
According to the Ministry of Energy, 2,535 Tanzanian companies had qualified to provide services across the oil and gas value chain by March 2026. Their services, covering areas such as healthcare, finance, food supply, security, fuel and infrastructure maintenance, were worth more than 1.325tri/-.
Employment in the sector has also increased. The number of Tanzanians employed in upstream oil and gas activities reached 335 by March 2026, compared with 225 a year earlier. In midstream and downstream activities, including the East African Crude Oil Pipeline (EACOP) project, 2,431 Tanzanians with low and intermediate skills had been employed in engineering, construction, mechanical and electrical work, environmental management, safety and community development.
Overall, EACOP had generated 11,155 jobs, including 8,756 for Tanzanians and 2,399 for foreign nationals. The project had also procured goods and services worth 141.68 million US dollars, equivalent to approximately 389.63bn/-, from the domestic market.
Beyond employment, EACOP is supporting skills development and technology transfer through collaboration with Arusha Technical College and VETA Moshi. A total of 120 young people had received training to support project activities.
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Decent work: Putting dignity at the centre of development
While agriculture, industry, finance and energy provide engines for job creation, Vision 2050 also emphasises the quality of employment. This year’s Workers’ Day celebrations highlighted the issue under the theme: “Decent Work is a Strong Pillar for Sustainable Development in the Implementation of National Vision 2050.”
Tanzania Trade Union Congress (TUCTA) Secretary-General, Heri Mkunda, said workers must have access to formal and decent employment as the country advances its development ambitions.
He acknowledges government efforts to improve workers’ welfare, including reducing Pay As You Earn (PAYE) tax on minimum-wage salaries from nine to eight per cent, improving employment contracts, strengthening social security and addressing delayed pension payments.
Other measures include extending National Health Insurance Fund (NHIF) coverage for children from 18 to 21 years, recruiting new public servants and promoting 631,000 employees between 2022 and 2025. Pension lump-sum payments increased to 40 per cent, while the minimum monthly pension rose to 250,000/- from January 2025.
Mr Mkunda also said Tanzania has ratified 90 per cent of ILO core conventions and launched a National Decent Work Country Programme involving tripartite stakeholders. ILO Director for East Africa, Caroline Mugala, said the launch of the programme demonstrates Tanzania’s commitment to placing decent work at the centre of development planning and Vision 2050 implementation.
The programme seeks to promote employment, protect labour rights, strengthen social protection and enhance social dialogue. According to the ILO, Tanzania has also made progress in strengthening labour institutions, skills development, workplace dialogue and social protection.
Ultimately, Dira 2050 presents employment as more than a source of income. It is also a foundation for human dignity, economic security, safety, fair remuneration and social protection. As Tanzania pursues its ambition of becoming a one trillion dollar- economy by 2050, workers will remain central to achieving that goal.
The government’s responsibility therefore extends beyond creating jobs to ensuring that employment in both the public and private sectors is productive, secure and fairly remunerated. The success of Dira 2050 will not be measured by the size of the economy alone, but also by the quality of life it creates for the people whose work will make that transformation possible.
