Govt launches 200bn/- youth fund loans
ARUSHA: THE government has launched the disbursement of loans under the 200bn/- Youth Development Fund, with Arusha becoming the first region to benefit after receiving 730m/- in the programme’s initial phase aimed at supporting youth entrepreneurship and self-employment.
Launching the programme in Arusha, Minister of State in the President’s Office (Youth Development), Mr Joel Nanauka said the government received 30,384 loan applications from young people nationwide, reflecting strong demand for affordable business financing.
Of the funds allocated to Arusha, 500m/- will support a youth-led pharmaceutical research and medicine production project, 30m/- will finance a dust-free chalk manufacturing factory, while 100m/- will be provided to nutrition groups comprising women and men to expand production and their businesses.
Mr Nanauka said the applications span agriculture, livestock, fisheries, manufacturing, trade, technology, innovation and services.
“These figures clearly demonstrate that Tanzanian youth are not lazy. What they need is an enabling environment that allows them to realise their potential,” he said.
Following the assessment of applications, the government has approved 8bn/- for disbursement in the first phase to finance youth-led projects across the country.
He said the fund was established to address limited access to capital, one of the biggest obstacles facing young entrepreneurs, and urged beneficiaries to treat the loans as investments rather than grants.
According to the 2022 Population and Housing Census, about 34.5 per cent of Tanzania’s population is aged between 15 and 35 years. Nanauka said investing in young people through education, skills, technology and affordable financing would boost productivity, innovation, employment and economic growth.
CRDB Bank Meru Branch Manager, Ms Haika Mawalla, said the bank is committed to ensuring the programme is implemented transparently and efficiently to reach eligible beneficiaries.
She said CRDB will complement the loans with financial literacy training, business management skills and guidance on responsible borrowing.
“We believe that the combination of capital, knowledge and financial discipline is the foundation of sustainable entrepreneurship,” she said.
Ms Mawalla added that the bank will continue partnering with the government to expand access to the fund and support the growth of a competitive, youth-driven economy.
