AfDB Grants $129 Million Loan to Boost Agribusiness and Youth Employment in Tanzania
The African Development Bank (AfDB) has approved a significant loan of $129.71 million to support a youth-focused agribusiness initiative in Tanzania, aimed at creating sustainable job opportunities and empowering young agripreneurs. The funding was sanctioned by the Bank’s Board of Directors on 20 September 2024 as part of the “Building a Better Tomorrow: Youth Initiatives for Agribusiness” program.
This ambitious program seeks to stimulate business opportunities for young people in key agricultural sectors, with a total project cost estimated at $241.27 million. In addition to the AfDB’s contribution, the funding package includes $1.15 million in grants from the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund, $210,000 from East-West Seed, and $110.41 million from the Tanzanian government, which represents approximately 45.76 percent of the total cost.
Patricia Laverley, the AfDB’s Country Manager for Tanzania, emphasized the program’s potential impact: “This project is expected to incubate and empower approximately 11,000 ‘agripreneurs,’ including at least 6,000 young agribusiness owners.”
Laverley noted that the initiative would also facilitate access to finance for an additional 2,500 young individuals already engaged in agribusiness but lacking access to commercial loans. Each agribusiness run by a young entrepreneur is projected to create an average of five jobs.
The program will leverage modern technologies to enhance agricultural productivity and decision-making for young farmer cooperatives. Strategies will be implemented to raise awareness and share knowledge through youth-oriented information and communication technologies.
Additionally, the project will focus on providing training and support for agrifood business incubation, with a special emphasis on recruiting female applicants.
As of 30 June 2024, the African Development Bank has approved a total of 25 projects in Tanzania, with an overall commitment of $3.48 billion, demonstrating its ongoing dedication to fostering economic development and job creation in the region.
